Crypto analysts suggest that the recent massive weekend leverage flush, which erased billions from the markets, could have set the stage for “Altseason 3.0.”
“Every major crypto bull run has seen sharp corrections of 30% to 60% along the way,” noted analyst and researcher Bull Theory on Monday.
Historical data supports this pattern: the pandemic-driven crash in March 2020 wiped out nearly 70% of market value, while May 2021 saw losses exceeding 50%. Additionally, the last bull market featured at least five other altcoin slumps ranging from 30% to 40%.
April’s market downturn sparked fears of a new bear market. However, the analyst emphasized, “Each of these wipeouts felt like the end—but every time, it was followed by some of the strongest rallies of the cycle.”
Altcoins are poised for a rebound
These tokens typically take the hardest hits during major market corrections—and this past weekend was no exception. XRP fell at least 18%, Solana dropped 22%, Dogecoin slid 28%, Cardano lost 25%, and Chainlink plunged 26% in just one day.
Following the March 2020 flash crash, “we saw a massive altseason where altcoins surged 25x to 100x,” said analyst Ash Crypto, adding, “I think it will happen again.”
Meanwhile, analyst Merlijn The Trader spotted a potential setup for “Altseason 3.0,” noting a monthly bullish MACD crossover on the BTC/altcoins chart—the same pattern that preceded the rallies in 2017 and 2021.
Total crypto market cap slips below $4 trillion
Despite growing optimism around a market recovery and a potential altseason, the total crypto market capitalization fell back under the $4 trillion mark on Tuesday.
Bitcoin led the losses, dropping 1.4% to trade below $113,500 Tuesday morning, even as several altcoins posted daily gains.
Meanwhile, Bitcoin dominance—a key metric for altcoin performance—recorded its first red weekly candle in five weeks, dipping below 59%, according to TradingView.
