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Is the 2025 altcoin season in danger? – Why analysts think otherwise

2min Read

Despite the downturn, analysts believe the peak of the altcoin cycle may still be ahead.

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  • Altcoins have experienced significant sell-offs, but signs of a potential rebound are emerging.
  • The altcoins’ market faces challenges but could rally with macroeconomic stabilization and increased liquidity.

The market has taken a sharp downturn, with billions wiped off the table in hours and hopes for a near-term altcoin season fading. However, some analysts remain optimistic, arguing that the cycle’s peak may still be ahead.

They point to historical patterns and current market dynamics suggesting the market’s upward trajectory may not have reached its ceiling yet.

As volatility continues, the big question remains: Are we witnessing the start of a longer bear market, or is there still room for more growth before the inevitable correction sets in?

Altcoins in 2025: Insights into the sell-offs

Source: TradingView

The altcoin market in 2025 has been marked by volatility, with recent data revealing a sharp downturn in market cap.

This steep decline highlights mounting selling pressure across major altcoins, driven by bearish sentiment and reduced liquidity.

RSI levels for altcoins have dipped to 29.37, signaling oversold conditions and hinting at the potential for a technical rebound.

altcoins

Source: X

During Sunday’s sell-offs, Ethereum’s [ETH] dominated liquidations with $531.65 million, followed by other altcoins at $423.65 million, significantly surpassing Bitcoin’s [BTC] $379.90 million.

Key tokens like Solana[SOL] and Dogecoin [DOGE] experienced heavy liquidations, showing heightened vulnerability. Total liquidations over 24 hours reached $2.04 billion, with $1.57 billion from long positions, reflecting overly bullish trades.

Can altcoin season still come about?

Despite the recent crash, analysts believe the best of altcoin season is yet to come.

Data shows that the market has yet to reach historic resistance levels marked by previous cycle peaks in 2018 and 2022, suggesting room for growth.

Source: X

Additionally, the MVRV ratio, currently below the overheating threshold of 6.0, supports this outlook. Historically, such levels precede significant market peaks.

While caution is advised, these indicators hint at the potential for a rebound before a major correction.

What needs to happen for a rebound: risks and challenges

For the altcoin market to rebound, several factors must align. Firstly, stabilization of broader market sentiment is essential.

This could be facilitated by resolving ongoing macroeconomic uncertainties, such as the recent global trade tensions exacerbated by new tariffs.

These developments have led to significant sell-offs in both traditional and crypto markets, proving the need for geopolitical stability to restore investor confidence.

Over-leveraged positions remain a significant risk, as cascading liquidations could further depress prices. Regulatory pressures, particularly in the U.S., also pose a threat to market recovery.

Declining confidence in altcoins, exacerbated by reduced liquidity, must be addressed through innovation and utility-driven adoption. Without these factors, a sustainable rebound remains uncertain.

 

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Samantha is a full-time crypto journalist with 2 years of writing experience in the field. Her key area of interest is the political ramifications of crypto-centric laws around the world. An avid market trader, Samantha also has a keen eye for price anomalies on trading charts.
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