The market for altcoins might be in for a start of what's known as an “altcoin season.”

The total altcoin market cap indicatesa bullish hidden divergence on RSI in weekly chart.A reversal from here will start a huge Altcoin season.

The market for altcoins might be in for a start of what’s known as an “altcoin season.”

That’s according to Ash Crypto, a respected crypto analyst/trader who’s spotted a key technical pattern.

He points to a hidden bullish divergence on the weekly Relative Strength Index (RSI). For those not deep into charts, such a pattern suggests that even though prices have been down, the underlying momentum is actually building, hinting at a turnaround.

The total altcoin market cap indicatesa bullish hidden divergence on RSI in weekly chart.A reversal from here will start a huge Altcoin season.

What's Happening in The Altcoin Market Right Now?

The total value of the altcoin market has been trending downwards since around the middle of last year, with prices generally making lower highs and lower lows.

However, lately, the altcoin market cap found some solid footing at the $1.03 trillion level, which led to altseason watchers' hopes for a bounce back.

Yes, the prices are still below a few important moving averages, which might indicate that a recovery could be a bit slow. The 200-day Simple Moving Average (SMA), which is currently around $1.16 trillion, is acting as a significant level of resistance.

This is on top of the 100-day SMA at $1.29 trillion and the 50-day SMA near $1.15 trillion, key levels that a sustained upward movement needs to overcome. In the shorter term, the 20-day SMA at $1.06 trillion is presenting some resistance.

Crucial Levels To Watch

One level that’s particularly important to keep an eye on is $1.06 trillion. If the market can decisively break above this point, we might see a short-term recovery, with the next target being in the $1.15 trillion to $1.16 trillion range.

However, if the price stays below this $1.06 trillion mark, we could see another test of the $1.03 trillion support level. If that support doesn’t hold, the market could fall further, extending the current downtrend.

Major Altcoins Performance

Overall market sentiment is still a bit cautious as major altcoins are struggling to regain their footing.

Ethereum is currently trading around $1,980 having dropped by about 2% in the last 24 hours, although trading volume is high at over $12.7 billion.

XRP has also seen a decline, currently around the $2.40 region after falling by about 2%.

Solana, another big player, is now around the $128 price mark, but with a drop of 3.5% in 24 hours compared to ETH & XRPs’ 2% reversal.