FET, AAVE, DOGE Surge in Accumulation – Is the Next Altseason Imminent?

Altcoins are making moves again—FET, AAVE, and DOGE lead the charge as accumulation spikes. Could this be the spark that ignites the next altseason?

Signs of life in the altcoin market. While Bitcoin hogged the spotlight, these tokens quietly stacked gains. Now, traders are eyeing the charts for a breakout.

The usual suspects—or something bigger? Meme coins and DeFi stalwarts are pulling weight, but skeptics whisper about 'fools rushing in' (again). Either way, the market's itching for action.

Will history repeat? Past altseasons rode hype trains to glory—and crashes. This time, 'smart money' claims it's different. (Spoiler: They always say that.)

Key Takeaways 

Market data showed massive accumulation for several altcoins. In fact, a positive impulse signal for alts was triggered, suggesting that we could soon witness an explosive altseason. 

Selected altcoins have outperformed Bitcoin [BTC] after it printed a new record high recently.

And the 2% drop in BTC dominance showed that a small capital rotation from BTC to altcoins had happened. But a larger rotation could soon follow. 

In a recent report, CryptoQuant analyst Joao Wedson highlighted massive accumulation across Aave [AAVE], Dogecoin [DOGE], Maker [MKR], Chainlink [LINK], Artificial Superintelligence Alliance [FET], and more. 

Source: CryptoQuant

The red bars show outflows (accumulation) of tokens moved from exchanges to users’ wallets. Binance saw more outflows than inflows, suggesting growing conviction of a likely surge.  

Positive altcoin shift confirmed?

Worth pointing out that there have been several altcoin season calls in H1, and none have materialized similar to last November’s broader market surge.

A select number of altcoins like Hyperliquid [HYPE] raked in triple-digit rallies, while others dumped harder. So, is this time any different? 

Well, Swissblock data suggests so. The crypto insights firm flagged that 15% of the top 100 altcoins had a positive impulsive signal per its proprietary model. It added, 

“We’re in an early altcoin recovery cycle. Impulse awakening: 15% of top 100 alts show positive impulse—rotation is starting.”

Source: Swissblock 

Per Swissblock, the same impulse signal was flagged before last November’s altcoin bull run. This meant that we could be in the early innings of a strong altcoin season. 

Additionally, the buying power and rotation have been happening subtly since mid-June. Notably, the USDT dominance has dropped from 5% to 4.5% since late June. 

When tracked from April, USDT.D has declined by 2.5% from 6% to 4.5%. This marked the Q2 bottom and subsequent recovery into Q3.

It meant buying pressure increased as users ditched their USDT for their favourite altcoin gems. 

Source: TradingView (USDT dominance vs. ETH/BTC ratio)

A similar trend was observed last November and mirrored the ETH/BTC ratio surge, too. ETH/BTC ratio surged 10% this week, an overall 19% pump since June lows.

In other words, some traders rotated from BTC to ETH, another positive sign for altcoin season. 

However, at the time of writing, the ETH/BTC ratio tagged the 200-day Simple Moving Average (SMA, blue line). It has been capped at this level for the past two days. 

A sustained rally above the dynamic level (200-D SMA) could confirm the capital rotation and lift the altcoin sector even further.

On the flipside, a drop in the ETH/BTC ratio could cap the altcoin market recovery. It remains to be seen whether the trend will extend.