Altcoin Dominance Hits Key Support Levels: Is a Major Rally Imminent?

The cryptocurrency market is buzzing with anticipation as altcoin dominance reaches critical historical support levels, signaling a potential surge in the coming days.

According to a recent post by @Alphractal on X, altcoin dominance — excluding stablecoins—has dropped to a support level of 25%, while excluding both Ethereum (ETH) and stablecoins, it hovers near 18%. These thresholds, historically significant per CryptoQuant data, have often preceded notable altcoin rallies, sparking speculation about an impending “Altseason” in June 2025.

Historical patterns support this optimism. A 2021 CryptoQuant analysis revealed that when altcoin dominance tests these support levels, it typically triggers a 15-20% gain in market share relative to Bitcoin, as investors rotate capital into alternative cryptocurrencies.

The current stabilization of Bitcoin around $104,000—following its all-time high of $111,970 in May 2025—further aligns with past cycles where Bitcoin consolidation paved the way for altcoin outperformance. Technical indicators like the Relative Strength Index (RSI) and MACD-Histogram, as noted in the Tangem Blog, also suggest weakening Bitcoin momentum, potentially driving funds toward altcoins.

Adding fuel to the fire, Binance’s unrealized Bitcoin profit has soared to a record $6 billion, according to CryptoQuant’s May 2025 report. With the exchange’s average realized BTC price at $56,000, this profit margin indicates reduced selling pressure, which could amplify altcoin volatility. As investors seek higher yields amid a maturing Bitcoin market, altcoins are poised to benefit, especially if dominance breaks above these support levels.

For traders, this is a critical moment to stay vigilant. The @Alphractal post emphasizes tracking these metrics live via Alpha Signals, offering tools to navigate the expected wave of volatility. Whether Bitcoin rises or falls, many altcoins are likely to outperform in the months ahead, making it essential to monitor support levels and market sentiment.

With regulatory shifts and macroeconomic factors like potential U.S. Federal Reserve rate cuts in play, the stage is set for a dynamic altcoin season. Prepare your portfolios—history suggests the next move could be significant.

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.

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