By Chris Hollingworth 
Key Takeaways:
The altcoin market cap, excluding Ether (ETH), has added $126 billion in Q2, sparking enthusiasm from analysts who have been waiting for an altseason. Crypto analyst Javon Marks highlighted a breakout that could rival the explosive 2017 bull run. Marks pointed to a chart comparing the TOTAL3 index (total market cap of altcoins excluding Bitcoin (BTC) and Ethereum) against the US money supply, suggesting a significant rally may be on the horizon. A rise in TOTAL3 against the US money supply indicates that altcoins are gaining value relative to the total liquidity in the US economy, reflecting increased investor interest and capital inflow to altcoins.
Analyst Insights:
Marks emphasized that altcoins have recently bounced off a critical retest level following a breakout, indicating a potential powerful run. Similarly, anonymous crypto trader Moustache observed a weekly inverse head-and-shoulders pattern in the TOTAL3 chart, a bullish reversal indicator signaling a rally and forecasting higher levels for altcoins.
Mixed Sentiment Among Analysts:
While some analysts are optimistic about the altcoin rally, others are more cautious. Technical analyst Crypto Scient noted that the recent rise in altcoin market cap has yet to reflect a higher time frame bullish trend shift. Crypto commentator DonaXBT argued that a significant breakdown in Bitcoin’s dominance trendline is crucial for altcoins to make a substantial move.
Market Indicators:
Altcoin spot trading volumes remain subdued, indicating that altcoins are still in the early stages of a rally. Despite lower volumes, market observers see this as a precursor to significant growth. The Altcoin Season Index, currently at 24, suggests that the market is in Bitcoin season, with potential for altcoins to experience significant pumps when the index climbs above 30-40.
Outlook:
With trading volumes showing early signs of recovery and the Altcoin Season Index hinting at a shift, investors’ optimism for an altcoin rally is increasing.
This article does not contain investment advice.
