Three hidden signals of an altcoin reversal: the market is repeating the 2022 scenario
The altcoin market is in a phase that confuses most participants. The weekly chart of the TOTAL3 index (the market capitalization of all altcoins excluding Bitcoin and Ethereum) shows a surprising structural similarity to the bottom of 2022. This is not about a direct copy of price levels, but a repetition of dynamics: quotes look weak, yet the weekly RSI is forming a higher low.
In 2022, after the collapse of the FTX exchange, altcoins continued to fall, but the RSI indicator on the weekly timeframe was already painting a higher low. The price seemed "broken," and most players expected a new crash. However, it was this divergence that became a harbinger of a powerful recovery. Now we are observing a similar picture.
What does the current situation show?
The altcoin market capitalization remains significantly below the 2025 bull market peak and hovers around the $680 billion mark. At the same time, the weekly dynamics are again forming a higher low, and the price refuses to enter a deeper correction. This configuration misleads retail investors: the chart does not look bullish on an emotional level — it seems "boring" and "damaged." But it is precisely in such conditions, as history shows, that the structure of a reversal is laid.
Among the coins that, in my assessment, have already found a bottom: SEI around $0.05, INJ in the $5 range, SUI slightly below $1, ONDO with the potential to triple to $1, and TAO, confidently holding at the $200 level. Meanwhile, most market participants still view the current cycle as completed — a classic sign of an imminent reversal.
Three signals in favor of a reversal
First signal: the price holds above the panic zone. TOTAL3 has corrected significantly but has not erased all the gains of the previous cycle. This means the market is weak, but not dead.
Second signal: improvement in weekly RSI dynamics. The Relative Strength Index is building a higher low. This indicates that sellers are losing strength, even when the price "looks heavy." This is exactly how a bottom typically forms.
Third signal: the return of the 2022 fractal. Last time altcoins showed such a divergence in weekly dynamics, the market was much closer to the start of a bullish phase than to its end. This does not mean a vertical rise tomorrow, but the bearish inertia is likely already fading.
As an analyst, I believe the current situation is a classic moment when fear and uncertainty create the best entry points. The altcoin market is not dead; it is simply gathering strength before a new move. Investors should take a closer look at coins that demonstrate relative strength amid overall weakness — they will become the leaders of the next rally.