Liquidity improved as trading volumes and stablecoin supply jumped in recent times.
Many altcoins fell in the past 24 hours in an unusual shift despite signals pointing to similar crypto market trends in past rallies.
Market data showed most coins are down, but there is optimism that the next few weeks could usher in decisive growth patterns in the market.
It is worth mentioning that the digital asset market was mostly down in the last 24 hours.
As of this publication, CoinMarketCap shows Bitcoin price at $118,945.82, down 1.5%.
The largest altcoin, Ethereum, was priced at $4,622.36, falling 2.12%. XRP also fell by 3.65% to $3.10.
Another major altcoin, Solana, had the biggest drop among the top assets. The coin fell 5.21% to $193.17 as of writing.
Meanwhile, Binance Coin slipped 1.97% to $845.44 with treasury acquisitions not able to resist the selloff. Ultimately, while Cardano dropped 2.88% to $0.9384, Dogecoin fell 3.60% to $0.2289.
The price outlook also showed that several other altcoins not mentioned above saw major drops.
Following these trends, a trader known online as Gordon said a key crypto market change had just happened.
In his recent post on X, he mentioned that Bitcoin dominance had shown its first monthly MACD bearish cross in four years.
According to the update, the last time this pattern appeared, altcoins recorded a sustained rally for four months.
Larger coins gained about 10 times their value, while some smaller ones rose 20 to 50 times.
Gordon said this sign is now in place and could mean the market is ready for similar gains.
Similarly, Coinbase Institutional said in its latest report that a full altcoin season could start as early as September.
The report pointed to possible interest rate cuts in the United States and expected progress on cryptocurrency regulation as key factors.
Notably, the Altcoin Season Index from CoinMarketCap, which measures how many altcoins are beating Bitcoin over 90 days, currently has a 40% reading.
Basically, the altcoin season is marked when this number reaches 75%.
Coinbase also reported that liquidity, which had been falling for six months, had started to recover.
This change came from higher trading volumes, stronger order books, and more stablecoins being issued.
It is important to add that the increase in stablecoin supply was helped by clearer rules born by MiCA and GENIUS Act.
Ethereum has started drawing strong interest from institutions in line with these developments.
Coinbase said this was linked to the use of digital asset treasuries and the bigger role stablecoins now play in trading and payments.
The shift in Bitcoin dominance, noted by Gordon, was the same as one seen four years ago before a long run of gains in altcoins.
While this does not guarantee the same outcome, it has led some market participants to keep a closer watch on the specific assets.
Some analysts said better liquidity, more interest from institutions, and the technical pattern could help lift altcoins later this year.
Additionally, others said the price drops show that traders may still be cautious in the short term.
Coinbase said a wave of liquidity in the late third quarter or early fourth quarter could move more money from other assets into altcoins.
Whether that happens will depend on global economic conditions and how rules for cryptocurrencies develop in key markets.
For now, the market is in a holding stage, and there are signs that a rally could start. However, there are reasons for traders to stay careful.
The next few months will show whether the current signals turn into a full altcoin season or into sustained speculations.
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