Massive Altcoin Breakout: 20%+ Daily Gains—Is This the Beginning of an AltSeason?

In the first few days of May 2025, when the Bitcoin price broke above the consolidated zone around $96,000, the altcoins also triggered a massive upswing. Altseason is when 75% of the top 100 cryptos outperform Bitcoin for a period of time. This is complemented by rising Altcoin dominance and a drop in BTC dominance. The current Altcoin season Index chart suggests the Altseason could not be near, as the index remains stuck below 20, hinting towards the dominance of Bitcoin. 

As seen in the above chart, the altcoin market cap seems to be gaining ground, but the Altcoin season index continues to plunge. This suggests Bitcoin holds a significant dominance, and hence the liquidity inflow is largely into the star token rather than the other altcoins. However, over the past 90 days, only a few altcoins like SYRUP, HYPE and VIRTUAL have recorded three-digit gains, and many popular altcoins remain under bearish influence. 

Bitcoin & Stablecoin Dominance Reach Crucial Juncture

It is a known fact that after Bitcoin & Ethereum, stablecoins like USDT or USDC are the largest traded tokens. Therefore, their dominance in the markets sheds light on the mindset of the investors regarding whether they are going with Bitcoin or altcoin. In an interesting update, the collective dominance of Bitcoin, USDT, USDC & DAI displays a similar pattern to the one it displayed during the previous Altseasons. 

A popular analyst, Moustache, refers to the combined dominance of the tokens and has discovered a very interesting pattern. The levels have triggered a bearish divergence after reaching a particular resistance. This has occurred before the start of the previous Altseasons. Now that the levels have again triggered a bearish divergence after testing the resistance, the analyst believes the Altseason 2025 is loading. 

Which Altcoins to Follow Ahead of the Altseason?

Ever since Bitcoin has been making massive moves, the tokens within the top 10 do not seem to have followed the trend. However, the other altcoins, specifically the memecoins, AI, RWA, and DeFi tokens, have been making huge noise. Over the past few days, the SEI price has been rising with over 40% gains, while the current intraday trade suggests JasmyCoin, SPX6900, dogwifhat, Virtuals Protocol, Jupiter & Sonic have been attracting gains over 20%. 

Apart from these, many other tokens continue to possess double-digit gains, hinting towards the rising dominance of the altcoins. On the other hand, the BTC dominance faces rejection from the highs at 65.95% and could be heading towards the local support at around 64.69%. These could be crucial levels to access the next course of action, as a rebound could delay the AltSeason, while a bearish continuation could revive the hopes.