The fourth quarter of 2025 was a challenging period for the crypto market. Most major crypto assets ended the year in the red.
Despite the fear and uncertainty that dominated the market, some analysts believe that a recovery is still possible. Market experts have identified three important signals that may indicate the start of a potential altcoin season in 2026.
Bullish divergences may signal altcoin reversal
The first important signal is the emergence of bullish divergences on weekly charts across various altcoins. This occurs when the price makes lower lows but indicators, such as the Relative Strength Index (RSI), form higher lows instead. This indicates decreasing bearish momentum and increases the likelihood of a trend reversal.
Cryptocurrency analyst Michaël van de Poppe pointed to this development and named Optimism, Arbitrum, Near, and Avalanche as examples. According to him,
“The weekly timeframe is one of the strongest charts to build something like this. This will be the year of the entire Web3 industry. Not of commodities.”
Altcoin dominance is nearing breakout in a multi-year pattern
The second signal is the Others.D index. This measures the combined market share of all cryptocurrencies outside the top 10 based on market capitalization.
In practice, this index excludes Bitcoin, Ethereum, other major assets, and large stablecoins, giving insight into the broader altcoin market. According to analysts, Others.D is about to break out of a multi-year declining wedge.
According to analysts, this is often a possible bullish pattern. If the price breaks above the upper trendline, it is usually seen as a sign that buyers are regaining control. This can precede a trend reversal or sustained increase.
Data from Bitcoinsensus shows that Others.D was around 6.88%. There is therefore much room for an increase if a breakout really occurs. The target then lies at 13.77%.
In another post, Bitcoinsensus pointed to the recent performance of Bitcoin dominance as a possible early signal for an impending altcoin season.
Altcoin trading volume is rising despite weak prices
The last signal comes from the trading volumes of centralized exchanges. The volume of altcoins (excluding the five largest cryptocurrencies) is “significantly higher” compared to previous cycles, according to on-chain analyst CW8900.
“Some say, ‘there is no alt-season in this cycle.’ But on-chain data shows that trading in altcoins is more active than ever,” said the analyst.
This high activity continues even now as prices drop and retail investors leave. The observer states that,
“Altcoin dominance has shifted to whales. They will drive prices up to maximize their profits during this bull market.”
Yet, there remains much skepticism. Crypto Twitter expects little from a major altcoin rally like in previous cycles. Additionally, Bitget CEO Gracy Chen stated in October that an altcoin season in 2025 or 2026 is unlikely.
With bullish technical signals but also ongoing doubt, the coming months will show whether these patterns lead to sustainable price momentum or just loose signals without follow-up.