- Altcoin dominance chart. Others.D touched its lowest zone since 2019, then sharply bounced from a deep six-year support.
- The total crypto market cap, excluding the top 10 coins, shows renewed momentum after a significant correction.
- The technical view signals a possible upside swing if the base support around 6 percent remains strong.
Altcoin dominance, tracked by the Others.D index, has rebounded from its six-year base support after a prolonged decline. Analyst Anup Dhungana shared that this rebound follows levels even lower than those seen during the COVID-19 crash, hinting that the downside phase might be ending. The chart reflects how altcoin capitalization, excluding the top 10 assets has found a solid floor near 6 percent.
The market’s total capitalization beyond Bitcoin and Ethereum had steadily declined throughout 2024, sliding toward levels not seen since 2018. The data now indicates a possible shift in momentum. The price reaction has drawn investor attention, suggesting a potential rotation back into mid-cap and small-cap cryptos.
Could this rebound mark the beginning of a broader altcoin revival phase for 2025?
Six-Year Support Zone Proves Crucial
The Others.D chart shows altcoin dominance repeatedly defending a base zone between 6% and 7% since 2018. Each retest of this zone previously led to a multi-month rally, confirming its relevance as long-term support. The recent flush below the band briefly broke records, yet buyers responded immediately with a sharp bounce.
Dhungana highlighted that this reversal resembles prior cycles where extended capitulation preceded fresh accumulation. Historical patterns imply that once the index recovers above its trendline resistance zone near 10 percent, altcoins could capture larger market share again.
Market analysts observe that this shift occurs while Bitcoin dominance stabilizes around 52 percent, leaving room for altcoins to recover liquidity. If macro conditions remain steady, the Others.D index may target the next resistance band between 18 percent and 22 percent.
Descending Pattern Breakout In View
The monthly candlestick structure shows a descending channel that has contained price action since late 2021. The latest candle printed a reversal formation from the lower boundary of that channel. A confirmed break above the upper trendline would signal the first technical trend change in over three years.
Analysts view the 6.9 percent zone as the trigger level for upside momentum. A sustained move beyond 10 percent could indicate renewed capital flow into the altcoin sector. The chart projection shared by Dhungana illustrates a potential move toward the 28 percent mark if sentiment remains positive.
This potential reversal pattern follows months of steady decline, which has drained volatility and trader confidence. However, the return of buying activity near long-term support adds credibility to the view that the market may be setting up for a broader recovery.
Downside Exhaustion Signals Possible Rotation
The six-year support flush acted as a reset for the altcoin space. Following this move, the selling volume declined sharply, while dominance began to rise again. Analysts interpret this as a sign that downside pressure has largely been exhausted.
From a market structure standpoint, the setup mirrors the early phases of the 2020 altcoin cycle that preceded substantial gains through 2021. If the pattern repeats, mid-cap tokens may benefit the most as investors seek returns that exceed those of large caps.
In conclusion, the Others.D index now stands at a critical inflection point between historical support and emerging momentum. While confirmation is pending, the current setup suggests that a new phase of market rotation could already be under way.
