Altcoin Market Hits New High, Bullish Cycle on the Horizon
- Altcoin market hits all-time highs, signaling growing investor confidence in cryptocurrencies.
- Over $555 million in tokens are set to unlock, fueling potential volatility and market growth.
- Altcoin Season Index reaches 67, suggesting a shift toward mid- and small-cap tokens.
The altcoin market is experiencing a remarkable surge, with its market capitalization reaching an all-time high of over $1.17T. This surge reflects growing investor enthusiasm and renewed confidence in alternative cryptocurrencies, suggesting that altcoins are gaining traction. As a result, expectations are building for a bullish trend in altcoins in the coming months.
Analyst Ash Crypto points out that seasonal trading trends—referred to as “Uptober,” “Moonvember,” and “Pumpcember”—may accelerate growth. Both retail and institutional investors are drawn to the high-risk, high-reward opportunities altcoins offer, moving beyond Bitcoin to explore these promising assets. With these trends in play, altcoins are expected to continue gaining ground over the next few months.
$555M in Tokens Set to Unlock, Boosting Market Volatility
More than $555 million worth of tokens are scheduled for release between 6 -13 October, Tokenomist said. The unlocking tide encompasses dozens of projects, ranging from new altcoins to established layer-1 networks. Unlocked tokens are often sold to capitalize on profits, which could create short-term downward pressure on prices.
ATH is at the forefront of unlocks, giving out 1.26 billion tokens with a value of $68.06 million, equal to 10.32% of its total circulation supply. And Aptos (APT) is next up at $61.53 million, unlocking (1.61% of supply). Other projects like BABY, BB, and HOME would release over 9% of their total supplies; this means even more supply hitting the market.
Furthermore, LINEA, IO, and MOVE are also locked for release. Those add up to what could be a high-supply week for several sectors. Solana takes the lead for linear unlocks, with $115.16 million (0.09% of circulating supply). A meme coin: TRUMP, meanwhile, would release $38.05M (1.52% of its supply).
Related: Altcoins Market Cap Retests 2021 Levels, Is a Breakout Imminent?
Altcoin Market Breaks Resistance, Bullish Momentum Builds
Large token unlocks often bring a surge in activity, but they are typically followed by significant selling pressure and concerns over short-term price drops. However, broader market indicators continue to show a bullish outlook.
The chart of TOTAL3, which measures the total cryptocurrency market capitalization minus Bitcoin and Ethereum, recently broke above significant resistance at $1.16 trillion. This breakout suggests strong demand for altcoins, indicating continued growth for the sector.
Fibonacci projections provided upside targets for the altcoin market. The first is $1.31 trillion, then $1.48 trillion — and finally, $1.76 trillion. The RSI is at 61, meaning altcoins are beginning to bubble up, but the market has yet to reach overbought. This leaves room for further growth, as momentum builds.
The Altcoin Season Index is at 69, and the market is getting closer to a full-blown altcoin season. In this cycle, the money usually moves out of Bitcoin and Ethereum in search of valuations in mid and small-cap tokens to make quick gains.
If this continues, altcoins could see a tremendous influx throughout the next several months. The only thing that investors are eyeing would be a possible change in the market trend, which may, in turn, favor altcoins over larger cryptocurrencies.
Bitcoin has also been on a tear, recently setting an all-time high of above $125,000. This is a notable achievement for Bitcoin, only two months after it first broke the $120,000 barrier. Once BTC loses some of its dominance, a significant amount should flood into high-growth alts. This rotation may pave the way for major gains in altcoins.
