Analysts point to three indicators that could predict an altcoin boom in 2026.

The fourth quarter of 2025 was a challenging period for the crypto market, with most major assets ending the year in losses.

Although fear and caution still prevail in the market, some analysts believe a recovery is possible. Experts have pointed to three key signals that could herald the start of an altcoin season in 2026.

Bullish divergences indicate the potential for an altcoin reversal.

The first signal is the appearance of bullish divergence on the weekly charts of various altcoins. This divergence occurs when the price creates new lower Dip , but indicators such as the Relative Strength Index (RSI) form higher Dip , suggesting that downward momentum is weakening and the likelihood of an upward trend reversal is increasing.

Crypto analyst Michaël van de Poppe has pointed out this trend with examples such as Optimism, Arbitrum, Near, and Avalanche. According to him ,

“The weekly timeframe is one of the strongest timeframes to build this trend. This is the year of the entire Web3 industry. Not the commodities.”

Altcoin dominance is about to break through a threshold in a multi-year pattern.

The second signal comes from the Others.D index, which tracks the dominance rate of all cryptocurrencies (outside the top 10 by market Capital ).

Specifically, this index excludes Bitcoin, Ethereum, other large-cap Capital , and key stablecoins, providing a broader view of altcoin market strength. According to analysts , Others.D is moving toward a potential breakout from its multi-year descending Falling Wedge pattern.

From an analytical perspective, this is often XEM as a potentially bullish pattern. Analysts believe that if the upper resistance line is broken, buyers will regain control, making a reversal or a sharp increase more likely.

According to data from Bitcoinsensus, Others.D is currently at around 6.88%, meaning there is still ample room for further gains if a breakout occurs. This analysis targets a rise to 13.77%.

In another Chia , Bitcoinsensus also mentioned the recent Bitcoin Dominance index as an early indicator of the potential upcoming altcoin season.

Altcoin volume surges despite weak prices.

The final signal comes from volume data on centralized exchanges. According to on-chain analyst CW8900, the volume of altcoins (excluding the top 5) is currently "exceptionally high" compared to previous cycles.

“Some people say ‘there’s no altcoin season in this cycle.’ However, on-chain data shows that altcoin trading is actually more active than in any previous cycle,” the analyst commented.

Notably, this high level of trading activity is being maintained even as prices fall and retail investors withdraw from the market. Experts also point out that:

"The dominance of altcoins has shifted to whales, who will drive prices up to maximize profits in this Bull market."

Despite numerous bullish technical signals, skepticism remains high. The crypto Twitter community doesn't have high expectations for a strong altcoin rally like those seen in previous cycles. Furthermore, Bitget CEO Gracy Chen stated in October that the likelihood of an altcoin boom in 2025 or 2026 is very low.

With optimistic technical signals emerging alongside considerable skepticism, the coming months will answer the question of whether these patterns will lead to a sustained price breakout or remain merely signals.