Altcoin Market Shows Signs of Strength as Key Support Holds and Altseason Hopes Return

Altcoins may be positioning for a rebound after months of subdued price performance. Market data indicates that many tokens are trading above key support levels established in October. Analysts say these signals could point to a renewed appetite for risk across the broader cryptocurrency market.

Van de Poppe Says Altcoin Market May Retest $1.2T as Key Support Holds

Crypto trader and analyst Michaël van de Poppe said the altcoin market, now valued at more than $879 billion, appears poised for another attempt toward its previous peak near $1.2 trillion. He noted that the current price structure remains constructive despite earlier declines.

Focus has turned to Total3, the market capitalization of all cryptocurrencies excluding Bitcoin and Ether. Van de Poppe observed that Total3 has continued to hold the $784 billion support zone. Price behavior around this level suggests buyers are actively defending the range. The metric is also approaching its 365-day moving average, a level closely watched for potential changes in the long-term trend.

In October, Total3 briefly reached an all-time high near $1.2 trillion before momentum faded. That advance proved short-lived, as a sharp market-wide sell-off followed. Nearly one-third of the altcoin market’s value was erased in a short period. Since then, prices have stabilized but have struggled to transition into a sustained uptrend.

Altseason Fails to Materialize in 2025 as Capital Rotation Stalls

Market participants are continuing to monitor for signs of the next altseason, a phase typically characterized by steady gains across a broad range of altcoins. Expectations for such a move were elevated in 2025. However, the year ended without the typical rotation of capital from Bitcoin into smaller tokens.

Several factors contributed to that outcome:

• Bitcoin closed 2025 with a negative yearly candle, an unusual result for a post-halving year.
• Confidence in the four-year cycle theory weakened as historical patterns failed to repeat.
• Bitcoin dominance remained elevated for much of the year.
• Capital briefly shifted toward Ethereum-focused treasury firms.
• Regulatory and structural concerns quickly weighed on sentiment.

Additional pressure came from the rapid expansion of token supply. CoinMarketCap now tracks more than 29 million cryptocurrencies. With capital spread across a growing number of assets, investor attention has become increasingly fragmented. Analysts argue that this saturation has reduced the effectiveness of rotation-driven rallies.

The rise of exchange-traded funds has also altered how capital moves within the crypto market. ETFs created isolated pools of liquidity tied to specific assets. Funds flowing into those products often remained contained, limiting spillover into smaller tokens.

BitMEX co-founder Arthur Hayes offered a contrasting view, arguing that altcoin season should not be viewed as a single event but as an ongoing process. He pointed to market cycles in 2017 and 2020, as well as more recent activity surrounding Hyperliquid, as evidence that opportunities continue to emerge. According to Hayes, many traders missed gains by waiting for a definitive signal that never materialized.