Altcoin Season Starting? XRP, DOGE, ADA Jump, While Memecoins Rally
The cryptocurrency market kicked off the week with a bullish start, as altcoins began to show signs of a potential rally. After weeks of sideways movement, the total altcoin market cap reached $1.01 trillion. Top altcoins such as XRP, DOGE, ADA, and DOT experienced gains of 4-8%, while PEPE surged by an impressive 20%.
Renowned crypto analyst Michael van de Poppe expressed his belief that altcoins could rally by 20 to 40% once capital starts to rotate within the market.
Altcoin Season Index Reaches January High
The Altcoin Season Index, which measures the performance of the top 100 cryptocurrencies against Bitcoin, has risen to 49, marking its highest level since January 9. Despite this increase, Bitcoin continues to dominate the market, trading around $73,663 with a market dominance of approximately 59.76%.
Van de Poppe suggests that a true altcoin rally may only begin once Bitcoin dominance drops below 55%, allowing smaller tokens to gain a larger share of the market.
Altcoins Outperform Bitcoin
Several major altcoins have seen significant gains in the past 24 hours, indicating that traders are starting to diversify their profits into alternative cryptocurrencies following Bitcoin’s recent surge. Ethereum surged by approximately 7.5%, outpacing Bitcoin’s 3.1% increase. Other popular coins like XRP, Solana, Cardano, and Polkadot also saw gains ranging from 4% to 9%.
Meanwhile, memecoins experienced even stronger growth, with Pepe jumping nearly 20%, while Bonk, Shiba Inu, and Pudgy Penguins (PENGU) all posted double-digit gains. Memecoins are known for their high volatility and tend to attract significant retail trading activity during early altcoin rallies.
Potential for 20-40% Upside Rally in Altcoins
Van de Poppe predicts that the total altcoin market capitalization could rise by 20-40% before encountering major resistance levels. If this scenario plays out, the crypto market could be on track for a full altcoin cycle.
Historically, altcoin rallies tend to kick off once Bitcoin stabilizes or moves sideways, allowing traders to shift their capital into higher-risk tokens.
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