Altcoins are exhibiting signs of recovery as the cryptocurrency market rebounds from a significant February correction. This recovery comes after a bounce from the $3 trillion mark on February 2. While the altcoin market cap faced strong rejection at $425 billion, notable analysis from crypto analyst Rekt Capital indicates the downturn is less severe than previous cycles.
Technical analysis highlights the importance of the $425 billion resistance level for altcoins, especially those outside the top 10. Although the altcoin sector experienced a broader downturn since January, the current 50% pullback is milder compared to past significant downturns of 69% and 85%. This indicates declining bearish momentum and growing market resilience.
These observations suggest investors' anticipation for an altcoin season may materialize, as profits potentially shift from Bitcoin to altcoins. Analysts expect altcoin performance to surpass Bitcoin, although a full-fledged altcoin season has yet to emerge.
