Alternative cryptocurrencies (altcoins) are showing technical patterns similar to those seen in 2020, suggesting a potential price increase. Specifically, they’re breaking out of a long-term trading range and a key indicator called the MACD is about to signal a buy opportunity, attracting attention from investors this week.
The setup has fueled renewed speculation that a broader altcoin rally could be forming.
Breakout Pattern and Momentum Signals Return
On April 8th, analyst Mark Chadwick noted on X (formerly Twitter) that altcoins were showing unusually strong potential. He pointed to a multi-year falling wedge pattern on the TOTAL2 chart, which represents the total market capitalization of all altcoins excluding Bitcoin, as the basis for his observation.
Since the market peaked in 2021, a long-term downward trend has developed, but recently, selling has slowed. Now, according to Chadwick, altcoins have moved above a key technical pattern called a wedge, which is often seen as a sign that the downtrend may be ending and prices could start to rise.
The analyst also noted that the MACD is nearing a point where it could signal a buying opportunity, similar to what happened in 2020 before the last big surge in altcoins. If this pattern holds true, it could indicate another rally is coming.
He stated that if the MACD indicator turns green and confirms an upward crossover in the near future, it suggests a positive direction, indicating prices are likely to rise.
Others shared similar opinions, including Crypto Patel, who pointed out on the same day that altcoins were rebounding from a long-term support level established during the 2022 lows, and suggested that the market had likely reached its lowest point.
CoinGecko data indicates the cryptocurrency market is currently showing positive momentum. Over the past 24 hours, several alternative cryptocurrencies – including Zcash (ZEC), LayerZero (ZRO), Ethena (ENA), and Arbitrum (ARB) – experienced price increases exceeding 10%.
The overall cryptocurrency market improved, increasing by over 4% to reach around $2.5 trillion. Bitcoin led the way, climbing above $72,000 with a gain of more than 5%.
Trading activity is picking up, as shown by a more than 7% increase in open interest, now totaling $113 billion according to CoinGlass. This rise in trading also led to more liquidations, indicating increased speculation in the market.
Mixed Backdrop After Months of Weakness
Altcoins have recently seen a rise in positive sentiment after a challenging period. Data from late March revealed that over 40% of these tokens were trading near their lowest prices ever – a steeper decline than during the last major market downturn. Experts at the time pointed to a lack of concentrated trading as the problem, explaining that a huge number of tokens were all vying for limited investment funds.
The market has been fluctuating recently. Bitcoin briefly fell back from around $70,000 yesterday, and that caused prices for some other cryptocurrencies, like AVAX and ADA, to also decrease.
I’ve been following the ALT/BTC charts closely, and I’ve noticed some encouraging signs recently. Analyst Ash Crypto highlighted that we’re seeing multiple green MACD bars – something we haven’t seen in years. However, we need to be cautious; Ash doesn’t believe a full altcoin cycle has begun yet. They feel we need to see shifts in Bitcoin’s dominance and improvements in overall market liquidity before we can confidently say that’s happening.
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2026-04-08 20:46