Altcoin Bullish Divergence Signals Early Rally

The altcoin market is starting to heat up, with a strong bullish divergence emerging in the charts—particularly visible on the $OTHERS.D chart, which tracks the dominance of altcoins excluding Bitcoin and Ethereum. This indicator is showing clear signs that a significant rotation could be underway, signaling the beginning of a broader altcoin rally.

Bullish divergence typically occurs when price movement is falling while momentum indicators like RSI are rising. This usually hints that a reversal may be around the corner. For altcoins, this divergence suggests that while prices have remained relatively subdued, underlying strength is building rapidly.

Dominance Shift Hints at Market Rotation

The current divergence in the $OTHERS.D dominance chart indicates that altcoins are beginning to gain strength against Bitcoin. Historically, such moves have preceded large-scale altcoin rallies. The key here is dominance—if altcoin dominance continues to climb, it’s a strong sign that investors are rotating out of Bitcoin and into a broader range of crypto assets.

Market analysts believe this could be just the beginning. The divergence points to an early-stage shift, not just a short-term pump. This means we might be witnessing the start of a multi-week or even multi-month altcoin trend, where the dominance could increase significantly from current levels.

Are We Still Early? The Numbers Say Yes

Despite some initial upward movement, data suggests that the altcoin market is still in the early phase of this potential rally. If this divergence continues to play out, we could see major gains across the board in smaller-cap tokens, DeFi projects, and even Layer 1 competitors.

This is a key moment for market participants. If the rotation continues, those who position early in strong altcoin projects might benefit from the outsized gains that usually accompany bullish divergence trends.