Altcoins Bounce from Make-or-Break Support – Dead Cat Bounce or Legit Bull Run?
Altcoins stage a Lazarus act after kissing critical support levels—but traders aren’t popping champagne yet.
The Crypto Rollercoaster Hits Another Loop
Blood in the streets? More like a clearance sale. Ethereum, Solana, and BNB clawed back 5-12% overnight, shaking off last week’s ‘everything’s on fire’ vibes. Technicals whisper ‘relief rally,’ but chain analytics scream ‘not so fast.’
Liquidation Carnage Leaves Scars
Leveraged longs got steamrolled when support cracked—$240M in altcoin positions vaporized. Now shorts are sweating as funding rates flip positive. Classic crypto: one group’s margin call is another’s ‘generational buying opportunity.’
The Institutional Wildcard
BlackRock’s Ethereum ETF paperwork hit the SEC’s inbox last hour. Cue the ‘institutional floodgates’ narrative—never mind that Wall Street still can’t tell a smart contract from a toaster manual.
Altseason or bull trap? The charts will decide. But after this week’s action, even Bitcoin maximalists are side-eyeing ADA bags.
Altcoins Eye A Breakout As Ethereum Holds The Key
Altcoins remain nearly 50% below their all-time highs, but sentiment is beginning to shift. Bulls are preparing for an expansive move across the board, with growing anticipation that a breakout could materialize once ethereum clears its current resistance zone. Since early May, ETH has been trading in a well-defined consolidation range, and altcoins have mirrored this sideways behavior, struggling to gain momentum without a clear signal from the market’s second-largest asset.
Carl Runefelt recently shared insights suggesting that the altcoin market is showing signs of life. By analyzing the TOTAL3 chart—which tracks the combined market cap of all cryptocurrencies excluding bitcoin and Ethereum—Runefelt highlights that altcoins are bouncing off key support in BTC terms. This bounce could indicate the beginning of a recovery rally, especially if capital rotation from BTC into altcoins accelerates in the coming sessions.
Historically, altcoins thrive when Ethereum leads the charge. A confirmed breakout above the $2,800 resistance zone could ignite broad participation and kickstart a new altseason. The current market structure suggests that many investors are positioning early, anticipating that macroeconomic clarity and market stability will fuel risk-on behavior.
However, the rally is not yet confirmed. Bulls still need Ethereum to break out decisively and sustain momentum above recent highs. If that happens, many oversold altcoins could see sharp recoveries and set the stage for a broader market expansion. For now, patience and timing remain key as traders watch ETH and TOTAL3 closely for signals of the next leg up.
TOTAL3 Chart Shows Key Rebound From Macro Support
The TOTAL3 chart, which measures the total crypto market cap excluding Bitcoin and Ethereum, is showing early signs of recovery after a sustained period of weakness. As of now, the chart reflects a bounce from the $830 billion level, which aligns closely with the 100-week simple moving average (SMA), currently acting as dynamic support. This level has historically served as a critical pivot zone, especially in mid-cycle consolidations.
The market cap sits NEAR $875 billion, still over 40% below the previous cycle’s peak, but with bullish momentum building. The recent weekly candle has posted a strong green body, suggesting renewed interest in the altcoin segment. Volume has also picked up, showing growing confidence among participants as many altcoins recover from deeply oversold conditions.
Technically, this bounce could signal the beginning of a new macro leg higher, especially if the 50-week SMA is reclaimed and price holds above $900 billion. The overall structure remains constructive, with higher lows forming since late 2022 and price compressing into a potential breakout formation.
Featured image from Dall-E, chart from TradingView
