Crypto Market Rally Exceeds $4 Trillion Amid Altcoin Surge

In brief

• Ethereum’s, Dogecoin’s, and XRP’s prices are surging, supported by bullish technical signals.
• The broader altcoin market rally has pushed the total cryptocurrency market capitalization past the $4 trillion mark.
• Charts hint at further upside potential, particularly for Ethereum and XRP.

After weeks of sideways movement, significant gains for Bitcoin and a multi-trillion dollar total market cap milestone, the cryptocurrency market is experiencing its most decisive rally since 2021. This week’s surge particularly benefited Ethereum, Dogecoin and XRP—collectively known as altcoins—which have significantly outperformed Bitcoin over the past seven days.

Favorable macroeconomic conditions include a flirtation near 6,000 points by the S&P 500, relative stability in oil prices around $76/barrel despite Middle East tensions, and recent progress towards cryptocurrency regulatory clarity with the introduction of the GENIUS Act establishing a stablecoin regulatory framework in the US. These factors form a “perfect storm” igniting a new “Alt Season,” as the mainstream crypto altcoin index climbs to 58 points, only two below its yearly high.

Ethereum (ETH): Technical Confirmation Points Towards Continued Strength

Ethereum emerged as the performance leader among major cryptocurrencies, recording a 25.7% weekly gain to reach an intraday high of $3,843 before repricing to near $3,769. This surge gained institutional validation through record inflows into US spot Ethereum exchange-traded funds, attracting $2.2 billion weekly.

The technical perspective remains strongly bullish. The Relative Strength Index (RSI) stands at 70, indicating extreme buying pressure. While traditionally signaling overbought conditions, the context of a major breakout confirms strong institutional fund flows rather than short-term speculative frenzy. A rising Average Directional Index (ADX) at 22 approaches the 25 threshold signifying a sustained directional trend. Crucially, ETH’s price trades well above the 50-day Exponential Moving Average ($2,888) and the 200-day EMA, exhibiting classic bullish moving average divergence.

Key Technical Levels:

• Immediate support: $3,417 (Fibonacci 23.6% retracement)
• Strong support: $2,888 (50-day EMA)
• Immediate resistance: $4,103
• Strong resistance: $4,282 (Fibonacci extension)

XRP: Breaking Sideways Consolidation Pattern

XRP staged a decisive breakout with a 20.9% weekly increase, reaching an all-time high above $3.40. This breaks a pattern of seven years of sideways price discovery, signaling renewed institutional interest and true supply-demand balance.

On the technical charts, the placement of XRP’s price relative to significant moving averages presents a powerful bullish signal. A widening gap exists between the 50-week EMA and the considerably lower 200-week EMA, indicating strong accumulation activity characteristic of multi-month trends. Despite a weekly RSI reading of 71 (approaching overbought territory), the interpretation must consider the years of prior consolidation. The current move represents pent-up buying pressure finally materializing. The ADX’s climb toward 25, while initially appearing weak, signals the nascent stages of a new dominant trend.

Key Technical Levels:

• Immediate support: $2.93 (resistance-turned-support)
• Steady support: $2.47
• Immediate resistance: $3.68 (Recent high)
• Strong resistance: $4.40 (Fibonacci extension)

Dogecoin (DOGE): Institutional Sale Strategy Lifts Performance

Dogecoin defied expectations with a substantial 33.5% weekly gain, establishing itself once again as the best performing meme coin (after Floki) in the top 100. This momentum coincided with Nasdaq-listed data firm Bit Origin’s high-profile $500 million treasury accumulation strategy for DOGE, including an initial payment of $40.5 million.

The technical indicators collectively suggest increasing bullish momentum. An RSI reading of 61 signals strong buying pressure in the “sweet spot” for trend continuation. The widening gap between the 50-day and 200-day EMAs confirms this bullish structure despite a low ADX of 16, indicating the conclusion of a prolonged downtrend. The “Squeeze Momentum Indicator” adding “Squeeze” suggests a period of consolidation preceding a new significant movement.

Key Technical Levels:

• Immediate support: $0.21 (Psychological level)
• Strong resistance: $0.28-$0.30 (2025 highs)

Disclaimer:
The views and opinions expressed in this analysis are for informational purposes only and do not constitute financial, investment, or other advice.