Altcoins hold key support as analyst eyes major rally

The altcoin market is showing signs of a potential rally as prices hold above critical technical support levels.

Crypto trader Michaël van de Poppe said the sector is positioned for a significant upward move towards prior highs.

The total altcoin market is valued at more than $879 billion, with upside potential towards its previous peak near $1.2 trillion.

Van de Poppe highlighted the Total3 index, which excludes bitcoin and ether, as holding support near $784 billion.

Trading data showed Total3 edging back towards its 365-day moving average, reinforcing the support structure.

Altcoins peaked in October before a sharp market crash wiped out around 33% of total altcoin value in a single day.

Market participants are watching closely for the start of a new altseason after a subdued 2025.

Analysts noted that traditional capital rotation from bitcoin into altcoins failed to materialise last year.

Bitcoin closed 2025 in negative territory, marking its first red year following a halving event.

The breakdown of the four-year cycle theory has altered expectations for altcoin performance.

The growing number of cryptocurrencies, now exceeding 29 million listed coins, has intensified competition for capital.

Some analysts said market saturation has diluted the impact of speculative flows into altcoins.

The introduction of crypto exchange-traded funds has further changed liquidity dynamics.

ETFs have been blamed for trapping capital and limiting its rotation into the broader altcoin market.

At the time of reporting, Bitcoin price was $91,831.38.