Analysts Spotlight Three Indicators That May Foreshadow an Altcoin Season in 2026

The last quarter of 2025 presented significant challenges for cryptocurrency markets, as most major cryptocurrencies concluded the year with losses.
Even though the atmosphere in the market seems to be filled with fear and uncertainty, some analysts are optimistic about the possibility of a recovery. Experts have identified three essential signals that could indicate the beginning of a potential altcoin season in 2026.

Key Takeaways

Analysts have identified bullish divergences, market dominance patterns, and increased trading volume as indicators of a potential altcoin season in 2026.
Bullish divergences suggest weakening bearish momentum, signaling a potential price reversal for altcoins.
The Others.D index indicates possible altcoin dominance breakout, which could lead to a broader market shift.
Despite these optimistic indicators, skepticism persists in the market, with some experts doubtful about a significant altcoin rally in the near future.

Bullish Divergences Indicate A Potential Altcoin Reversal

The first significant signal is the emergence of bullish divergences on weekly charts for various altcoins. This pattern occurs when the price reaches lower lows, but indicators, such as the Relative Strength Index (RSI), produce higher lows. This situation implies diminishing bearish momentum, which increases the likelihood of a trend reversal. Cryptocurrency analyst Michaël van de Poppe highlighted this trend, mentioning assets like Optimism, Arbitrum, Near, and Avalanche. He stated,
“This is the year for the entire Web3 industry. Not commodities. The weekly timeframe is among the strongest periods to observe these developments.”

Altcoin Dominance Approaches Breakout in Multi-Year Pattern

The second indicator is identified through the Others.D index, which monitors the combined market dominance of cryptocurrencies outside the top 10 by market capitalization. This index provides insights by excluding Bitcoin, Ethereum, and other major assets, allowing for a clearer view of broader altcoin market health. Analysts have noted that Others.D is nearing a breakout from a multi-year falling wedge formation.

This formation is generally seen as potentially bullish, and analysts who observe a breakout above the upper trendline may interpret it as a signal of buyers regaining control, potentially leading to an overall trend reversal or a sustained upward movement. Currently, Others.D stands at around 6.88%, suggesting opportunity for growth if a breakout materializes, with an upside target set at 13.77%. In a related analysis, Bitcoinsensus highlighted Bitcoin Dominance's recent trends as an early indicator of an impending altcoin season, noting:

“Bitcoin Dominance is facing rejection from a multi-year trendline. Similar rejections in 2021 sparked significant altcoin rallies. If this breakdown continues, dominance could drop toward the 40% zone.”

Altcoin Trading Volume Increases Despite Weak Prices

The final signal comes from data on trading volume on centralized exchanges. According to on-chain analyst CW8900, altcoin trading volume (excluding the top five cryptocurrencies) is “substantially higher” than in past cycles.

“Some claim there is no alt season this cycle,” CW8900 argued. “Yet, on-chain data indicates altcoin trading is more active than in any previous cycle.” This heightened activity persists even as prices decline and retail investors withdraw from the market. The analyst noted that “altcoin dominance has shifted to whales, who aim to raise prices for their profit-maximizing strategies during this anticipated bull market.”

Despite these promising indicators, skepticism remains prevalent. Many on Crypto Twitter are wary about a broad altcoin rally comparable to previous cycles. Adding to the outlook, Bitget CEO Gracy Chen remarked in October that an altcoin season is unlikely to occur in 2025 or 2026. With the presence of bullish technical signals amid widespread doubts, the upcoming months will ultimately reveal whether these trends lead to lasting price momentum or fade away without significant follow-through.