Altcoin Season Index Climbs Back to Its January High, Hinting at the Return of Altseason

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Altcoin Season Index Climbs Back to Its January High, Hinting at the Return of Altseason

Jakarta, Pintu News – The market capitalization of altcoins (TOTAL2) rose back above $1 trillion. In the second week of March, it closed with its first green weekly candle after seven consecutive red weeks.

At the same time, the Altcoin Season Index returned to the levels seen earlier in the year. This development raises hopes of an altcoin season in March, despite ongoing geopolitical tensions.

Some analysts also think there are additional factors that could drive the altcoin season. However, capital flows currently appear to be focused on only a few specific narratives.

Altcoin Season Index and Tether (USDT.D) Dominance Indicate Potential Altseason in March

Entering the third week of March, the Altcoin Season Index rose to 49 points. This was its highest position since January 9.

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Even so, the index is still quite far from the 75-point threshold that is generally used as official confirmation of altcoin season. Nonetheless, the sharp recovery from the previous low suggests that investor interest in shifting capital to altcoins is starting to pick up again.

During the same period, the dominance of the stablecoin Tether or USDT.D began to show increasingly clear bearish signals.

USDT.D reflects the portion of USDT’s market capitalization to the total crypto market capitalization. When this metric decreases, it usually indicates that investors are starting to use USDT to buy altcoins.

Analyst Gordon reviewed the 4-day chart of USDT.D and found a bearish MACD-H crossover. Based on historical data, this signal has appeared several times before altcoin recoveries in the short to medium term.

“A bearish crossover on USDT.D has occurred. Liquidity will now flow back into BTC and altcoins,” said analyst Gordon.

Crypto analyst Michaƫl van de Poppe also predicts that altcoins have the potential to strengthen significantly in the near future. According to him, the price increase could be in the range of 20-40%.

However, choosing the right altcoin has become much more challenging. The market is currently saturated with more than 37 million tokens. Therefore, investors need to do careful research, read the direction of trends, and be aware of the risks of low-quality projects.

Latest Report Highlights AI Tokens and Exchange Tokens as the Center of Market Attention

Currently, tokens related to artificial intelligence (AI) stand out the most. CoinGecko data shows that AI Coins are leading the altcoin performance. The sector recorded an average gain of 19% during the first two weeks of this month.

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A recent report from the BeInCrypto page also highlighted a number of AI-themed tokens that managed to attract investor fund flows throughout March. Among them are Bittensor (TAO) and NEAR Protocol (NEAR), each of which currently has its own catalysts that are increasingly stealing market attention.

The next narrative that saw notable performance came from exchange-based tokens. Within this group, Hyperliquid (HYPE) gained a boost from the HIP-3 catalyst, while OKB rallied following news of an investment from ICE.

Despite some positive signals, the overall market sentiment is still relatively fragile. The Fear and Greed Index is still in the “extreme fear” zone. On the other hand, military tension in the Middle East also continues with no clear signs of abating.

As such, the altcoin recovery could potentially remain limited and struggle to maintain its momentum amidst the still-strong risk-off sentiment.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

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