Altcoin prices rise as USDT dominance falls: Is ‘altseason’ here?

The total market capitalization for altcoins, tracked by the TOTAL3 indicator, reached a record $1.18 trillion, signaling increased momentum in the altcoin sector. This surge coincided with a sharp decline in USDT dominance, which dropped from 4.74% to 4.18% over the past week, indicating a potential shift of investor capital from stablecoins to higher-risk assets. Positive sentiment is reflected in the breakout from a cup-and-handle pattern noted by trader Honey, forecasting further bullish trends for altcoins. Although altcoin performance has accelerated, only 60% of gains among the top 100 cryptocurrencies are attributable to altcoins, falling short of the typical 80-90% range that confirms a full altseason. The altcoin season index stands at 69%, approaching the critical threshold. Additionally, significant withdrawals from exchanges, particularly in ERC-20 stablecoins, suggest profit-taking, which may limit buying power temporarily. Investors are advised to conduct thorough research before making decisions.

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