Is capital rotation started in crypto? ✍️

Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. In the current phase of the crypto market, we’re seeing an important shift known as capital rotation. This means that after money flows into one asset (like Bitcoin), it starts moving into other parts of the market. First, we saw strong performance from Bitcoin, followed by Ethereum breaking out of its five-year downtrend on the monthly chart. Now, attention is shifting toward large-cap altcoins like Litecoin, Chainlink, Cardano, Solana, and XRP. Many of these coins are currently trading near or slightly above long-term resistance levels. This is significant because it’s the same setup we saw in Ethereum before its recent move up. Investors who feel Ethereum has already made its big move are now looking for strong, fundamentally sound altcoins that haven’t yet performed in this cycle and large caps are the most logical next step.

Guys, from a technical perspective, we’re seeing signs of strength building in the market. Indicators like RSI and Stochastic RSI are breaking out of their own long-term downtrends, suggesting increasing momentum. At the same time, the Others market cap (which tracks all coins excluding Bitcoin and Ethereum) is showing record-high volume over the past two months, even though price action hasn’t yet followed. This points to a phase of consolidation before a breakout. With ETF approvals expected for many altcoins by October, this could act as a major catalyst. Historically, once capital flows from Ethereum to large caps, it later trickles down to mid- and low-cap coins. So, while many investors are currently focused on short-term price action or are stuck in disbelief due to long market corrections, the long-term charts and volume trends are painting a more bullish picture. If history repeats, we may be on the edge of a strong altcoin rally starting with the large caps. That's it for today. Thanks & have a good day!!

@abfarhan

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