Key Insights:
- TOTAL2 chart signals start of major altseason, mirroring 2017 and 2021 setups.
- Ethereum breaks out of bullish pennant, may lead to broader altcoin rally.
- Analysts project up to 150x returns on select low caps before mid-2025.
Altcoins showed strong bullish signals as analysts identified patterns resembling those from previous bull cycles. The TOTAL2 chart, which tracks altcoin market cap excluding Bitcoin, broke out of consolidation and triggered altseason predictions. With capital rotating out of Bitcoin and U.S. liquidity rising, analysts forecasted explosive returns heading into 2025.
Analysts Say TOTAL2 Chart Signals Altseason
Analysts monitoring the TOTAL2 chart believed the altcoin market is replicating the consolidation-to-breakout structure seen before previous explosive rallies. Moustache pointed to a recurring macro pattern visible on the weekly TOTAL2 chart.
According to him, the ongoing trend resembles the time of accumulation that happened in 2018 and 2020, leading up to the 2021 bull run.
He believed the market was appearing in the blue zone, which is the stage before major surges in prices. On the cycle, his comments clearly indicate a bullish Wyckoff transition, showing that supply gets bought up before the next markup phase.
Since the price slightly sits below the major resistance band, Moustache suggested that the dips could be a good moment to join for high profits. He labels this a “buy-the-dip zone,” aligning with the belief that institutional capital and whales are already positioning ahead of the breakout.
Ethereum and Altcoins Outpace U.S. Liquidity Growth
Consequently, Javon Marks provided a macroeconomic layer to the analysis, comparing TOTAL2’s performance against the M2 U.S. money supply. Based on his model, TOTAL2 exceeded M2, meaning that altcoins are now picking up speed compared to fiat liquidity for the first time since early 2021. He regarded this trend as a big step forward for digital assets.
Marks also noted that TOTAL2 has exited a bullish pennant in the weekly timeframe. In most cases, such charts suggest that the market will continue its current direction after the period of consolidation ends. In this situation, the market’s confidence and demand for altcoins as a hedge develop further.
This comparative edge against fiat liquidity is crucial. It proves that capital investments are real, not only affected by prices, and remain in place as the cash they return goes down with inflation.
Log Scale Targets Show Massive Multiples
Danny brings a logarithmic perspective, mapping out previous altseasons and projecting what Phase 3 could bring in 2025. He pointed out that every cycle, starting in 2017, 2021, and now, started with a similar base pattern before making a significant return.
In 2017, his model indicates that low-cap altcoins surged by up to 75x. In 2021, the yields went up to 120x for some of these tokens. Danny believes that by 2025, a 150x increase in gains could happen since he believes the market is now similar to what it was during previous rallies.
Danny emphasized that the logarithmic trend remains intact. In spite of price corrections and dips, he maintains that each significant low has historically resulted in sharp increases. “If we find $150 in the next dip, it could equal $500,000 by the time July rolls around,” he writes, pointing out that timing and action are essential.
He stated that, if the price rises above old resistance, the bear downtrend will be dismissed completely. The current support-resistance flip on TOTAL2 offers technical confirmation that altcoin dominance is reasserting itself across the crypto market.
On-Chain Activity and Capital Rotation
While charts and liquidity models dominate the analysis, data on blockchain usage is also beginning to support the bullish thesis. On-chain metrics showed that daily active addresses, smart contract use, and transactions have all gone up on Ethereum, Solana, and BNB Chain.
Notably, a lot of development is happening, especially in Layer 2 and gaming-related blockchains. DeFi total value locked (TVL) has rebounded across major protocols, indicating that capital is not just speculating but actively engaging in yield generation and governance.
Furthermore, the rise of meme coins on Solana and Base is attracting retail investors to the markets once again. As attention broadens from Bitcoin to altcoins, analysts see this capital rotation as confirmation that a new phase has begun.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
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