The Altcoin Season Index has climbed to 78, signaling the potential start of a broad rally among Bitcoin’s alternative tokens. Solana (SOL) and Chainlink (LINK) stand out as key US-based altcoins attracting investor attention, supported by bullish technicals and growing institutional interest.
The cryptocurrency market ends the week largely in the green, with Bitcoin (BTC) rising above $116,000 before correcting slightly toward $115,000 on Friday. Altcoins, led by Solana and Ethereum (ETH), continue to sustain a bullish outlook, suggesting the much-anticipated altcoin season is underway.
What is an altcoin season?
Cryptocurrency bull cycles are typically split into Bitcoin-led rallies and altcoin seasons. A Bitcoin bull cycle is characterized by a sustained BTC rally, driven by investor confidence and high trading volume, while altcoins often lag.
Altcoin seasons occur when alternative cryptocurrencies outperform Bitcoin in price gains, with trading volume, capitalisation, and market interest shifting toward altcoins. CoinGlass defines the start of an altcoin season when the Altcoin Season Index exceeds 75; at 78, the current reading suggests the altcoin season has begun.
Solana nurtures bullish outlook as bulls target $250
Solana has surged 53% since early August, trading at $239 on Friday. The token remains well above key technical levels, including the 50-day EMA at $195, the 100-day EMA at $182, and the 200-day EMA at $174.
A sustained buy signal from the MACD indicator since Wednesday, along with an RSI reading of 69, points to robust bullish momentum. Institutional interest is also rising, with entities like Forward Industries allocating funds toward SOL-focused treasuries. Continued demand could propel Solana toward its record high of $296.
Chainlink shows bullish signals amid ETF optimism
Chainlink bulls maintain control, supported by a near-confirmation of a MACD buy signal on the daily chart. The RSI is gradually climbing at 58, indicating growing buying pressure. Key levels include seller congestion at $27.83 and supply at $30.93, both previous resistance points.
Chainlink’s positioning above the 50-day EMA at $21.86, the 100-day EMA at $19.74, and the 200-day EMA at $18.08 underscores investor confidence, while these EMAs may act as support if short-term profit-taking occurs.
Both Solana and Chainlink stand out as potential entry opportunities as investors look to position themselves for gains during the emerging altcoin season.
