Altcoin Season Index Signals Strong Rally
The Altcoin Season Index has risen to 78. This suggests a possible rally for Bitcoin’s alternative tokens. The cryptocurrency market is ending the week mostly in green. Bitcoin (BTC) surged above $116,000 before slightly correcting to $115,000 on Friday. Altcoins like Solana (SOL) and Ethereum (ETH) remain strong. This supports the bullish outlook and hints at the start of altcoin season.
What Is Altcoin Season?
The crypto bull cycle has two phases: the Bitcoin bull cycle and altcoin season. The Bitcoin bull cycle features a strong rise in Bitcoin’s price. During this time, altcoins usually lag behind. Bitcoin’s rally often leads the whole crypto market higher.
Altcoin season happens when alternative cryptocurrencies outperform Bitcoin. Investors shift focus from Bitcoin to altcoins for higher returns. Prices, market caps, and trading volumes of altcoins rise sharply. According to CoinGlass, altcoin season starts when the Altcoin Season Index reaches 75. It is currently at 78, indicating altcoin season has begun.
Tokens like Solana and Chainlink (LINK), both made in the USA, are key to watch during this period.
Solana Nears $250 with Strong Momentum
Solana has gained 53% since early August. It trades around $239 as of Friday. The token stays well above important moving averages: the 50-day EMA at $195, 100-day EMA at $182, and 200-day EMA at $274.
The MACD indicator shows a buy signal since Wednesday, pointing to growing bullish momentum. The RSI is at 69, indicating steady buying pressure. More traders are increasing their Solana holdings.
Institutional interest is rising too. Forward Industries is raising funds for Solana-focused treasuries. If demand holds, Solana could break toward its all-time high of $296.
Chainlink Shows Signs of a Breakout
Chainlink bulls are in control. The MACD is close to confirming a buy signal on the daily chart. The RSI is rising and sits at 58, showing increasing buying pressure.
Key resistance levels include $27.83, tested on August 22, and $30.93, tested last December. Chainlink trades above its 50-day EMA at $21.86, 100-day EMA at $19.74, and 200-day EMA at $18.08. These levels may act as support if the price pulls back.
