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.