Altcoin Season May Be Starting as Analysts Spot Early Recovery Signals

Crypto market analysts say early indicators suggest an altcoin season could be quietly developing in 2026 as trading activity, market structure and investor interest begin improving.

After a correction of more than 50% driven by macroeconomic uncertainty and tensions linked to the US and Israel-Iran conflict, analysts believe the altcoin market may be showing signs of recovery.

One important signal is the growing number of altcoins trading above their 200-day moving average on Binance. That figure has now climbed to 21%, a level last seen in September 2025.

This suggests investor interest in altcoins is gradually returning, although it remains too early to officially declare an altseason. During stronger rallies in late 2024 and mid-2025, between 60% and 80% of altcoins traded above their 200-day average.

Trading Volume and Capital Rotation Show Bullish Signals

Another positive sign comes from rising altcoin trading volumes on centralized exchanges.

Altcoin trading activity, excluding the five largest cryptocurrencies, has steadily increased in recent weeks. A key signal appeared after the 30-day moving average of altcoin volume moved above the 365-day average, historically a sign that investors are rotating capital from Bitcoin into smaller cryptocurrencies.

Meanwhile, the AltSeason Index climbed to 28.6, its highest level in months. Although still below the 75% threshold needed to confirm a full altseason, analysts say the recent rise suggests momentum is building.

Market Structure Points to Potential Recovery

Technical indicators also show improvement in the broader altcoin market. TOTAL2, which measures the crypto market excluding Bitcoin, say recent breakout patterns resemble earlier cycles that led to strong gains.

Some analysts believe Bitcoin dominance could eventually decline if investors move more capital into altcoins, though Bitcoin still remains the market leader for now.