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The beginning of an alt season rally is suggested by recovery signals displayed by Ethereum, Dogecoin and XRP. Given that Bitcoin's market share recently reached 60% some analysts think this could mark a sea change for altcoins and possibly the beginning of a time when major altcoins outperform Bitcoin in terms of percentage gains.
After a robust breakout, Ethereum has pushed past resistance levels and is now aiming for additional gains. It just broke through the crucial $3,000 mark and if momentum continues, it will aim for higher levels. Dogecoin is likewise on the rise, climbing past significant resistance levels at $0.18 and displaying the ability to sustain its bullish trend.
In a similar vein, XRP has joined the rally and is making a strong upward move with room to grow if it can overcome its next resistance level, which is around $0.60. This altcoin rally is supported by a number of indicators. A well-known analyst Benjamin Cowen claims that the 60% dominance level for Bitcoin frequently serves as a gauge for the strength of altcoins. Investor attention has historically shifted to altcoins in search of larger returns when Bitcoin dominance reaches this level.
The analyst also cites past trends, speculating that altcoins might rise through November before experiencing a decline in December similar to trends seen in 2020. The ETH/BTC pair will be a crucial indicator to keep an eye on if the altcoin rally continues. The altcoin market may see further gains if Ethereum can maintain its upward trend against Bitcoin.
However, given the ongoing influence of macroeconomic and regulatory forces on cryptocurrency markets, variables like changes in monetary policy may cause volatility. To ascertain whether this alt rally has enduring potential or whether Bitcoin will reclaim its leadership in the upcoming months, investors should monitor the crucial support and resistance levels for ETH, DOGE and XRP in addition to general BTC dominance patterns.