Is the Altcoin Market on the Verge of an great “Explosive Rebound”?
Cryptocurrency traders closely monitoring three technical indicators suggest that the altcoin market is currently in an “incredible phase” and could soon enter an “explosive rebound phase” if history repeats itself.
Cryptocurrency analyst Mikybull Crypto, in a post on May 11 to their 66,600 followers, stated: “The altcoin market cap is currently at an incredible phase, historically followed by an explosive rebound.”
The phase of skepticism refers to investors maintaining a cautious stance despite positive market signs, as reflected in a significant 24-point drop in cryptocurrency fear and greed index over the past 30 days. The current “greed” score stands at 56.
According to TradingView data, the total market capitalization of altcoins (excluding the top ten cryptocurrencies) has dropped by 17.55% in the past 30 days, to $264.9 billion.
Nevertheless, cryptocurrency trader Rekt Capital, in a post on May 12 to their 465,300 followers, stated that it remains above the $250 billion support level and is “preparing for future upside.”
Over the past 30 days, the total market capitalization of altcoins has dropped by 17.55%.
Traders are focusing on three indicators of the broader cryptocurrency market—20-day Exponential Moving Average (EMA), Stochastic Relative Strength Index (RSI), and Bitcoin Dominance—to support their predictions for the direction of the altcoin market.
EMA represents the average price over the entire period, with more weight given to recent prices. An anonymous cryptocurrency trader, Titan of Crypto, stated in a post on May 11 that if the cryptocurrency total market capitalization “retests” the EMA20 and simultaneously “bull crosses” (measuring the relative strength of the stochastic RSI indicator itself), it could lead to a “rebound timing.”
The Bitcoin Dominance chart—measuring Bitcoin’s market share relative to the entire cryptocurrency market—is one of the oldest and most referenced indicators. It can provide traders with insights into overall market sentiment and risk appetite.
As of writing, Bitcoin’s dominance stands at 54.7%, down 0.56% over the past week. An anonymous technical analyst, Yoddha, claimed in an X post on May 11, “Further decline from here could kickstart altseason.”