Altcoin Season: Signs Emerge For Potential Price Breakout

Key Insights:

• Early signs of capital rotation raise fresh altcoin season expectations.
• This comes as 38% of altcoins trade near all-time lows, a deeper slide than the post-FTX period.
• ALTS/BTC monthly MACD stays green for three months, for the first time this cycle.

Altcoin season is drawing fresh attention as more coins slid close to their historic lows while long-term charts reflected early strength. Data shared by market watcher Darkfost points to deep pressure across the sector, yet some traders believe this phase could mark the base before a wider move.

Altcoin Season and the Rise in Tokens Near ATL

Altcoin season is now being discussed again after new figures showed that 38% of altcoins are trading close to their all-time lows. Darkfost highlighted this reading, noting that it was worse than the period that followed the FTX collapse.

Just after that event, the figure clocked around 37.8%, and in April 2025, it was near 35%. This means a larger share of the market is sitting at extreme levels compared to other weak moments in this cycle.

Prices across many smaller coins fell back to areas last seen months ago. Demand has slowed, and trading activity remains light. Liquidity in crypto is still fragile as funds have moved toward equities and commodities. This is where price swings have offered more short-term opportunities.

In that setting, altcoins have struggled to attract fresh capital. Investors have stayed cautious, and many have cut back exposure to smaller coins.

Darkfost described the current phase as the largest pullback for altcoins in this cycle. Such deep retracements often reflect fear and lack of confidence. However, heavy drawdowns can also signal that selling pressure is close to exhaustion.

When a large part of the market trades near ATL, the room for further decline may shrink, especially if new buyers step in. Past cycles have shown that strong rallies often start when interest is low. During those periods, prices tend to move quietly before momentum builds.

The present 38% reading does not confirm a bottom, but it shows how stretched the sector has become. For traders watching altcoin season, this level is hard to ignore.

Bullish Signal Appears on ALTS/BTC Monthly Chart

While prices remain under strain, a key chart is offering a different view. The ALTS/BTC monthly MACD has stayed green for three months in a row. According to traders tracking the setup, this is the first time that has happened in the current cycle.

The last similar signal came in 2021. Soon after, altcoins began to rally against Bitcoin. That period marked the start of a strong run for many tokens. MACD is used to track momentum and trend direction. On a monthly time frame, it reflects longer-term shifts rather than short moves.

A green reading over several months suggests that downside pressure may be fading on the projections for the altcoin season.

Price action has not yet confirmed a broad breakout. Even so, the contrast between weak spot prices and improving momentum has caught attention. Interestingly, some traders argue that this mix often appears before a wider move begins.

ALTS/BTC Dominance Shift Back in Focus

Attention is also turning to ALTS/BTC dominance in the push for the altcoin season. For most of the cycle, Bitcoin has outperformed the wider market. Recently, the relative chart has started to stabilize.

A steady rise in ALTS/BTC would signal that capital is rotating back into alternative tokens. That shift is a key feature of the altcoin season. Without strength against Bitcoin, rallies in individual coins tend to fade quickly.

Investors remain cautious for now. Many are waiting for clearer confirmation before increasing exposure. Still, the combination of a high share of tokens near ATL, the green monthly MACD, and early signs of dominance change has reopened the debate.

It is worth noting that Altseason is not confirmed, but pressure appears to be easing at the margin. After one of the deepest pullbacks of this cycle, the market is watching closely for the next move.