A technical perspective shared by crypto analyst Cryptollica is pushing back against the belief that the altcoin era is over. This perspective is based on the outlook that the current environment may be less about the decline and more about preparation.
Decade-Long Structure Is In Rotation Zone
Bitcoin and other large-cap cryptocurrencies are dominating market attention, and many traders have written off altcoins as a lost cause. Extended underperformance, fading arguments, and months of sideways action have led to the belief that the altcoin era is over.
Related Reading
Taking to the social media platform X, crypto analyst Cryptollica pointed to the OTHERS/BTC ratio, which tracks the total crypto market capitalization excluding the top ten assets relative to Bitcoin.
According to the analyst, this ratio is now sitting directly on a trend support that has held for nearly a decade. Interestingly, the long-term chart shared by the analyst shows repeated historical interactions with this rising channel, where previous touches of the lower boundary led to major rotations into altcoins.
At the time of writing, the OTHERS/BTC ratio has been compressing for the past few months without any clear sign of a directional breakout. Altcoin dominance has been drifting lower within a narrowing range, approaching the lower trendline while volatility continues to dry up.
However, instead of interpreting the current compression as weakness, the analyst noted that price is respecting a decade-long geometric structure without a breakdown. Cryptollica described this setup not as a graveyard but as a rotation point rather than a graveyard. Therefore, traders declaring altcoins dead are reacting to fatigue, not structure. The market is behaving like a loaded spring and storing energy.
Momentum Indicators Quietly Flip In Favor Of Altcoins
A separate analysis of the OTHERS/BTC ratio shows that boxes may already be ticking beneath the surface for an altcoin season. Crypto analyst Ash Crypto noted that the monthly MACD on the OTHERS/BTC chart has just delivered two consecutive green closes for the first time in four years.
Related Reading
Not only that, but the Others/BTC MACD bullish cross has now been confirmed. History shows this kind of signal has always corresponded with the earliest stages of altcoin recoveries, especially when it appears after extended periods of underperformance.
Ash Crypto also pointed to the ISM index moving back above the 50% level as another bullish sign for altcoins. This ISM moving back above 50% is notable because this macro indicator has repeatedly coincided with improving conditions for altcoins in past cycles.
The confirmation of momentum on OTHERS/BTC and a hold above a decade-long support strengthens the case that the current altcoin lull may be less about weakness and more about positioning ahead for an incoming altcoin season.
Featured image from Pixabay, chart from Tradingview.com
