Is the altcoin market about to see an “explosive rally”? Analysts focus on these three indicators

A cryptocurrency trader who closely monitors three technical indicators says the altcoin market is currently in an “incredible phase” and could soon enter an “explosive rally phase” if history repeats itself.

“Altcoin market cap is currently going through an incredible phase which, historically, is followed by an explosive rally,” crypto analyst Mikybull Crypto told their 66,600 X followers in a post on May 11.

The skepticism phase is when investors remain skeptical despite positive market signs, as reflected by the Crypto Fear and Greed Index’s sharp drop of 24 points over the past 30 days. The Greed score currently stands at 56.

According to TradingView, the total altcoin market capitalization (excluding the top 10 cryptocurrencies) has fallen 17.55% over the past 30 days to $264.9 billion.

Despite this, cryptocurrency trader Rekt Capital told their 465,300 followers in a May 12 post that it remains above the $250 billion support level and is “positioning for future upside.”

In the past 30 days, the total market value of altcoins has fallen by 17.55%. Source: TradingView

Traders are watching three indicators of the broader cryptocurrency market — the 20-day exponential moving average (EMA), the Stochastic Relative Strength Index (RSI), and Bitcoin dominance — to support their predictions on the direction of the altcoin market.

The EMA is the average price over the entire period, with more recent periods weighted more heavily. Anonymous crypto trader Titan of Crypto said in a May 11 post that if the total crypto market cap “retests” the EMA20 while also “crossing bullish” (a measure of the relative strength of the Stochastic RSI indicator itself), it could be “time for a bounce.”

The Bitcoin dominance chart — a measure of Bitcoin’s market share relative to the entire cryptocurrency market — is one of the oldest yet most cited indicators. It can provide traders with an overview of the market’s overall investor sentiment and risk appetite.

At press time, Bitcoin’s dominance is at 54.7%, down 0.56% from the past week. Anonymous technical analyst Yoddha claimed in a May 11 post on X that “further declines from here could kick off the alt season.”