Top 5 Altcoins Set To Explode This Bitcoin Bull Run

Bitcoin faces resistance en route to the $100,000 target with the possibility of consolidation. This situation sparked new interest in the altcoin market. Altcoins delivered huge gains to investors in 2021 when Bitcoin paused its rise, and a similar scenario may be starting this cycle.

With investors anticipating another potential breakout, we analyze key altcoins that could rebound once again if Bitcoin takes some breathing room. This deep dive explores five altcoins that belong to the 2021 bull run and are showing signs of preparing for an explosive move this cycle.

Bitcoin dominance is decreasing, altcoin may rise

Bitcoin’s dominance reached its highest level since 2021 at 61.53% on November 18. Since then, dominance has decreased, dropping to 58.97% on Tuesday, November 26, 2024.

A decline in Bitcoin dominance typically paves the way for a return of capital to altcoins, paving the way for a possible comeback during the altcoin season when at least 75% of tokens outperform Bitcoin over a 90-day time frame.

During the 2021 bull run, Bitcoin dominance dropped to 40% and altcoins began to recover, providing investors with nearly double-digit gains throughout the cycle. A similar event could push altcoin prices higher during this bull run.

Bitcoin dominance % | Source: TradingView Is it altcoin season?

The altcoin season index on Blockchaincenter.net shows a steady rise on the scale that measures whether it’s “altcoin season” or not. An altcoin season is confirmed when 75% of the top 50 altcoins outperform Bitcoin over a 90-day time frame, excluding stablecoins like Tether, DAI, and asset-backed tokens like WBTC, stETH, and cLINK.

The chart shows that the index rose from 6 on November 5 to 57 at the time of writing. When the metric reaches 75, it indicates an “altcoin month.” When this occurs in a 90-day period, it is altcoin season.

Although it is not altcoin season yet, this shows a steady progress in the same direction and investors can start preparing by adding relevant altcoin tokens to their portfolios to make profits in the coming weeks.

Altcoin month index | Source: Blockchaincenter.com Altcoins post huge gains from 2021 bull run

During the 2021 bull run, altcoins such as Avalanche (AVAX), Polkadot (DOT), Fantom (FTM), Internet Computer Protocol (ICP), and Sui Protocol (SUI) may make a comeback in this cycle. Technical and on-chain indicators support the return of these assets.

Total open interest in US dollars is a metric used to determine the value of all open contracts on derivatives exchanges in a given token. Open interest for AVAX, DOT, FTM, ICP, and SUI saw an increase on November 22 and has remained steady above average since then, according to Santiment data.

Total open interest in USD on AVAX, FTM, DOT, ICP and SUI | Source: Santiment

Volume and address activity traded in these assets are near and above average in some cases, meaning crypto traders’ interest in these tokens is increasing.

AVAX gained nearly 20% last week; While DOT increased its value by 33%, FTM rallied 44%, ICP increased by 18%, and SUI erased 8% of its value. In the 2021 cycle, these tokens were important for traders in terms of their benefits, partnerships and added value to the ecosystem.

Meme coin narrative, utility, and real-world asset tokenization, as well as Ethereum alternative chains, have also gained traction this cycle, making Avalanche, Polkadot, Fantom, and Sui Protocol relevant for investors.

Top 5 altcoins targeting this cycle

Avalanche’s daily price chart shows that the altcoin could extend gains by 55% to re-reach its March 2024 peak, with the target at $80. This is a psychologically important price level for AVAX.

The relative strength index reads 69, close to but below the “overvalued” zone above 70. Moving average convergence divergence, a momentum indicator showing green histogram bars above the neutral line. This supports the thesis of further gains in AVAX.

AVAX/USDT daily price chart | Source: Crypto.news

According to the daily price chart, Fantom could rise 16% in the coming weeks and re-reach its March 2024 peak of $1.2292. Fantom’s target is the March 2022 peak of $1.6817.

The MACD indicates that further gains are likely in Fantom and the three exponential moving averages are key support levels for FTM.

FTM/USDT daily price chart | Source: Crypto.news

Sui Protocol’s token is trading at $3.4350 at the time of writing. SUI could revisit its 2024 peak of $3.9409. The token is trading above three EMAs, with the 50-day EMA at $2.6631 acting as a key support level.

SUI may recover 15.26%, with the upward sloping RSI supporting the bullish thesis for the token.

SUI/USDT daily price chart | Source: Crypto.news

ICP ended its multi-month downtrend on November 22. The token could retest the 2024 peak at $20.9850. On the way to the target, ICP faces resistance at the 50%, 38.2%, and 23.6% Fibonacci retracement levels at $13.3870, $15.1800, and $17.3990, respectively.

Momentum indicator MACD supports ICP’s bullish thesis on the daily time frame.

$9.4790 is an important support level for ICP in case of a correction in the token.

ICP/USDT daily price chart | Source: Crypto.news

If the token revives in the coming altcoin seasons, Polkadot could increase its earnings by 50%. DOT may face resistance at $10.50 and could surpass this level to target $11.8890. This represents a gain of approximately 51% from the current price level.

DOT’s target is the March 2022 peak of $23,850, and the token may find support at $4.7040.

DOT/USDT daily price chart | Source: Crypto.news

The MACD supports the bullish thesis for Polkadot. DOT is currently down on a 7-day period; However, recovery is likely in the short term.

It is important for investors to note that the resurgence in altcoin prices is due to the declining dominance of Bitcoin and the rotation of capital from BTC to altcoins. If Bitcoin closes above $100,000 on the daily time frame and rises further, the altcoin season could be delayed or pushed to early 2025.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.