Altcoins often take a serious hit before their biggest rallies — and according to analysts, the recent crypto shakeout might have set the stage for the next major “altseason.”
Over the weekend, the crypto market saw billions wiped out in a massive leverage flush that liquidated countless positions. But some experts believe this painful correction could be the catalyst for “Altseason 3.0.”
“Every major bull run in crypto has included sharp corrections between 30% and 60%,” noted analyst Bull Theory on Monday. “These resets shake out weak hands and prepare the ground for massive rallies.”
During the pandemic crash in March 2020, markets plunged nearly 70%. In May 2021, they dropped over 50%. And throughout the previous bull cycle, there were several other 30–40% retracements before altcoins roared back stronger.
While the April market drop had many declaring the start of a new bear phase, Bull Theory argued that “each crash looked like the end — and each one was followed by the most powerful upswings of the cycle.”
Altcoins Could Be Poised for a Comeback
Altcoins tend to suffer the most during these shakeouts — and the weekend proved no exception. XRP fell around 18%, Solana (SOL) lost 22%, Dogecoin (DOGE) dropped 28%, Cardano (ADA) shed 25%, and Chainlink (LINK) slipped 26% in just 24 hours.
However, analysts are hinting this might be the last big dip before a major reversal. “After the March 2020 crash, we witnessed a huge altseason where coins surged 25x to 100x,” recalled market commentator Ash Crypto. “I believe we’re about to see history repeat.”
Trader Merlijn The Trader also pointed out that a bullish monthly MACD cross is forming on the BTC/Altcoins chart — a pattern that last appeared before the explosive runs of 2017 and 2021.
Total Market Cap Slips Below $4 Trillion
Despite growing optimism for an altcoin rebound, the total crypto market cap slipped below the key $4 trillion level on Tuesday.
Bitcoin (BTC) led the downturn, dropping 1.4% on the day to trade under $113,500. Interestingly, several major altcoins were posting small daily gains at the same time — hinting that momentum could be starting to shift.
Another sign supporting that theory: Bitcoin dominance fell below 59%, marking its first red weekly candle in over a month, according to data from TradingView.
If history is any guide, these conditions often precede explosive altcoin rallies. The question now is — will 2025 deliver the next great altseason?
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