Altcoins have crashed... is this the beginning of Altseason 3.0?

The markets just went through a weekend no trader will forget anytime soon.
After a massive wipeout of leveraged positions worth billions of dollars, the crypto world woke up with one question on its mind… could this be the beginning of Altseason 3.0?

History loves to repeat itself

“Every major expansion in crypto has been accompanied by sharp drawdowns between 30% and 60%,” analysts remind us.
And indeed, March 2020 brought the pandemic “black swan” with nearly a 70% drop, while May 2021 erased over half of the total market capitalization.

And yet, after every such crash, the market came back stronger than ever.

In recent days, we saw a similar pattern – panic, liquidations, red charts.
But if history repeats itself, this very flush-out might mark the start of the next major altcoin wave.

Altcoins take the hit first

Traditionally, altcoins suffer the most during flash crashes like this.
XRP dropped over 18%, Solana (SOL) by 22%, Dogecoin (DOGE) by 28%, while Cardano (ADA) and Chainlink (LINK) lost more than 25%.
However, this is nothing new – every altseason has historically been preceded by a similar “cleansing.”

Analyst Ash Crypto reminds us:

“After the crash in March 2020, we had a massive altseason where some coins did 25x to 100x. I wouldn’t be surprised if we see the same again.”

Technical signals are lining up

On the BTC/altcoins chart, a monthly bullish MACD cross is currently forming – the same technical pattern observed at the beginning of 2017 and 2021.

In both cases, this move was followed by massive altcoin rallies. Meanwhile, Bitcoin continues to consolidate below $113,500, as its dominance drops under 59%.

This has always been one of the strongest indicators that capital is beginning to flow into higher-risk assets.

The reversal may have already begun

Total market capitalization fell below $4 trillion, yet investor sentiment remains optimistic.
With Bitcoin dominance decreasing, altcoin volume rising, and new technical signals emerging, the market seems ready to enter its next phase.

The question remains: will we witness a new altseason, or will this turn out to be just another false start?

💡 If you want to be ready for a potential Altseason 3.0, keep an eye on the market and trade leading cryptocurrencies on Altcoins.bg