Altcoin dominance has been forming a multi-year descending channel, with signs of bottoming near the 7.00% support level. This pattern indicates a potential breakout, as the Relative Strength Index (RSI) shows a five-year falling wedge pattern nearing a breakout, signaling rising momentum across altcoins. Additionally, the stochastic oscillator mirrors cycle lows from 2016 and 2019, which historically have been followed by powerful altcoin rallies.
As of July 2025, the market share of altcoins excluding the top 10 coins stands at 7.13%, down from a peak near 17%. This extended decline has lasted longer than any correction in the past decade. However, recent technical patterns now point toward a possible breakout. The chart structure reveals a descending channel forming since early 2022, marking consistent lower highs and lower lows. Candle formations have repeatedly tested the lower channel boundary, forming rounded bases at key historical support zones. A horizontal trendline around 7.00% indicates a possible base is now forming.
The RSI indicator shows a nearly five-year falling wedge, with values reaching deeply oversold levels. This wedge pattern has compressed into a tight range, approaching a breakout zone. Since early 2022, the lower wedge support has held firmly. Previous RSI wedge compressions in 2016 and 2020 preceded large price surges. Moreover, the stochastic momentum oscillator is showing a rounded bottom near -75. These patterns have historically aligned with powerful bullish reversals, marked by cycles in 2016, 2019, and 2023.
Market cycles also show strong repetition. Each historical oscillator low came after prolonged corrections, followed by major upside moves. The chart reveals repeated price behavior, supported by matching RSI and oscillator patterns. Candle structures now mimic those seen before earlier breakouts in dominance. Consequently, the entire setup signals another potential rotation into altcoins. Bitcoin dominance also appears to be reversing slightly. Meanwhile, the crypto market cap has broken past consolidation zones, currently stabilizing above $3.27 trillion, reflecting renewed strength.
You can contact us for more informations or ads here [email protected]