Analysts Identify 3 Indicators That Could Signal an Altcoin Season in 2026
Analysts point to bullish divergences, altcoin dominance breakouts, and high trading volume as potential signals for an altcoin season in 2026.Summary
Despite a challenging fourth quarter of 2025, some analysts suggest three key indicators could signal the start of an altcoin season in 2026. The first is the formation of bullish divergences on weekly charts for several altcoins, indicating weakening bearish momentum. Analyst Michaël van de Poppe cited Optimism, Arbitrum, Near, and Avalanche as examples, emphasizing that 2026 is poised to be the year for the Web3 industry, not commodities.
The second indicator is the Others.D index, which tracks the dominance of altcoins outside the top 10. Analysts observe this index nearing a breakout from a multi-year falling wedge pattern, which is typically bullish, with targets suggesting significant upside potential from its current level around 6.88% towards 13.77%. This potential breakout aligns with observations that Bitcoin Dominance is being rejected from a multi-year trendline, similar to the lead-up to the 2021 altcoin season.
The third signal is surging altcoin trading volume on centralized exchanges, excluding the top five cryptocurrencies. On-chain analyst CW8900 notes that this activity is higher than in previous cycles, suggesting that whales are accumulating and will drive prices up, despite general market skepticism and contrary opinions from figures like Bitget CEO Gracy Chen.
(Source：BeInCrypto)