- Altcoins are concluding a 2-year re-accumulation phase, the longest in the history of digital assets, signaling a massive store of potential energy.
- The Relative Strength Index has returned to 2022 bear market levels, suggesting that the downside risk is exhausted and the risk/reward ratio is at an all-time high.
- Analysts forecast a parabolic expansion that could see the TOTAL2 market cap surge from $1.17T to over $3.2T, led by high-utility sectors like AI and DeFi.
The ever-volatile world of cryptocurrency, altcoins are showing signs of a major comeback. According to a recent analysis shared by prominent crypto trader ParabolicXBT, the total market capitalization of cryptocurrencies excluding Bitcoin (TOTAL2) is currently at the tail end of a prolonged re-accumulation phase. This phase, which has stretched over two years—the longest in crypto’s history—mirrors patterns seen in previous market cycles, setting the stage for what could be an explosive expansion.
Technical Floor: Why the RSI Reset Signals a High-Conviction Buy
The chart illustrates distinct phases in the altcoin market’s journey. Starting from the accumulation phase in 2022-2023, where prices bottomed out amid bearish sentiment, the market entered re-accumulation around 2025. During this period, smart money has been quietly building positions while retail investors grapple with fear and uncertainty. The Relative Strength Index (RSI) has fully reset, echoing the conditions at the 2022 bear market low, signaling that downside risk is limited. As ParabolicXBT notes, “The risk/reward couldn’t be any better. Accumulate quality alts. Be patient.”
This re-accumulation isn’t just a waiting game; it’s a strategic buildup. Historical data shows that such phases often precede parabolic runs, where market caps surge dramatically. Projections suggest TOTAL2 could climb from its current levels around 1.17T to over 3.2T in the expansion phase, driven by factors like improving macroeconomic conditions, regulatory clarity, and renewed institutional interest in Web3 technologies. Altcoins in sectors like DeFi, AI-integrated blockchains, and layer-2 solutions stand to benefit most, as they offer real-world utility beyond Bitcoin’s store-of-value narrative.
Sector Leaders: Why AI, DeFi, and Layer-2s Will Drive the 3.2T Surge
However, caution is key. While the chart points to upside potential, external variables like global economic shifts or regulatory hurdles could extend the consolidation. Investors are advised to avoid going all-in but rather position gradually, focusing on projects with strong fundamentals. Ignoring bearish propaganda and staying informed could be the difference between missing out and capitalizing on the next bull wave. This phase underscores the cyclical nature of markets. For those who’ve endured the grind, the expansion phase isn’t just probable—it’s inevitable.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
