Altcoins have seen significant underperformance relative to Bitcoin, approaching lows not observed since early 2019. Recent data indicates altcoins lagged Bitcoin by 8% to 10% over a rolling 90-day period.
The $TOTAL2 index, tracking the total altcoin market capitalization excluding Bitcoin, now hovers at a critical technical support level. This level historically served as a foundation for rebounds in prior market cycles.
Historical patterns reveal that similar periods of pronounced altcoin underperformance have frequently preceded substantial recoveries. Gains after such dips have historically exceeded 60% at times.
Market sentiment indicates that successfully maintaining the current $TOTAL2 support zone could attract renewed investment capital into altcoins. This potential catalyst could drive significant growth across the sector.
Investors are advised to closely monitor the behavior of the $TOTAL2 index near this support level. Such vigilance may reveal favorable entry points, though risk management remains paramount during this phase.