A crypto analyst tracking altcoin momentum says a wave of tokens is entering what he calls “phase two” of the altcoin cycle, breaking out of prolonged bearish ranges and posting fast, big moves. According to his analysis, Bitcoin is approaching two turbulence zones, the high $80,000s and the low-to-mid $90,000s, and how it behaves at those levels will set the tone for altcoins broadly.
What’s Actually Breaking Out Right Now
Several tokens have confirmed breakouts above both their daily trend lines and 200-day moving averages, a pattern the analyst treats as an early buy signal. Dogecoin has broken its daily trend after consolidating near its 200-day average, with resistance mapped at 12 cents and 15 cents.
Compound has broken its weekly trend, with targets set between $34 and $38 initially, and $50 to $60 further out. Cardano, HBAR, Filecoin, Immutable X, and Chainlink have all shown similar breakout patterns, each with their own resistance zones to watch.
XRP is described as “breaking out,” positioned alongside these other tokens as one of the fresh spot-buying opportunities currently forming. Sui, which the analyst flagged as an early entry previously, is now targeting a rally toward $1.40 to $1.80. Avalanche has hit a brief pause near resistance and is expected to need more consolidation before its next move.
Why USDT Dominance Matters Here
The analyst pointed to USDT dominance breaking down as confirmation of the broader altcoin squeeze, arguing this metric matters because it reflects capital rotating out of stablecoins and into altcoins market-wide, not just Bitcoin’s individual price action. He also flagged Total3, the combined market cap of altcoins excluding Bitcoin and Ethereum, as breaking through recent lows, another signal supporting the same thesis.
The analyst’s broader roadmap expects a push higher through the rest of 2026, followed by a cooldown period, before a potential run toward new highs in 2027.
What Could Change This
The analyst said any pullback or red day in the near term shouldn’t be read as bearish, but rather as a natural correction within the broader uptrend, an opportunity to take some profit and reposition for the next leg rather than a sign the cycle has reversed.
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