Altcoin Market Cap Surges 10% After Recent Dip: Which Coin Will Rally Next?

Altcoin Market Cap Analysis

The Total Crypto Market Cap excluding BTC and ETH (TOTAL3) recently broke out from a long-term descending triangle in mid-November, triggering a strong bullish rally. The move culminated in an impressive impulsive wave structure, peaking near $1.316T at the 1.268 Fibonacci extension, before showing signs of a pullback.

Following the peak, the market cap retraced to $933B on December 10 but has recovered by around 10% since. It is currently above the $1.01T level, coinciding with the 1.0 Fibonacci.

This pullback aligns with the natural corrective phase of an extended rally. The Relative Strength Index (RSI) is cooling off from overbought levels and currently sits at 57%.

The current price action suggests potential stabilization near $1.01T. If this support holds, a continuation toward $1.31T is possible. Examining the wave structure, we can see that its decline since the all-time high is most likely a developing correction before final wave 5 makes another upward advancement.

However, failure to maintain above $900B could lead to deeper corrections, potentially invalidating the possibility.

Biggest Altcoin Winner

The chart below compares the performance of four major altcoins—XRP, SOL, BNB, and DOGE—highlighting their recovery trajectories since their prior bull cycle highs.

XRP and SOL have shown particularly notable recoveries, with XRP surpassing its prior bull cycle highs, reflecting strong market interest and bullish momentum. SOL came close to its former highs before encountering resistance, signaling resilience and renewed investor confidence in its ecosystem.

BNB maintained a relatively stable trajectory, reflecting its position as a utility-driven token with consistent demand. Meanwhile, DOGE, while not reclaiming its all-time high, demonstrated impressive gains, fueled by community enthusiasm and speculative interest.

Which Coins Will Rally First?

This chart compares the performance of four major altcoins—ADA, AVAX, SHIB, and LINK—highlighting their recovery stages after an extended accumulation phase.

Unlike the first-tier altcoins revisiting their prior bull cycle highs, these tokens are still in the early stages of recovery, recently breaking out and approaching the 0.382 Fibonacci retracement level. This indicates significant upside potential remains before testing previous cycle highs.

ADA and AVAX have demonstrated strong breakouts from their accumulation zones, pushing toward key Fibonacci levels but falling short of reclaiming higher resistance zones. SHIB and LINK similarly show signs of renewed momentum but are also capped below critical retracement levels, signaling that the broader market still has room for further upside. The consistent rebound across these altcoins points to increasing investor confidence, but their current levels suggest that further recovery phases are necessary to revisit prior peaks.

DOT is Ready to Run

Polkadot (DOT) stands out among top altcoins with the most upside potential, as it remains in a clear accumulation phase between $3.50 and $11. Unlike previously analyzed altcoins that have broken key resistance levels, DOT has yet to confirm a breakout, suggesting significant room for growth.

Since November 4, we saw another attempt for a breakout to be made, but a rejection occurred, sending it back to $7.50 on December 10. This could be its second sub-wave of the five-wave impulse, meaning that its next runup should lead to a breakout.

If this happens, our next target would be at $18.70 (1.618 Fib extension of wave 1), while its final is set at $23.40. This target aligns with the 0.382 Fibonacci retracement drawn from the all-time high to the lower bound of the accumulation zone.

From its current levels that would be a 170% increase, and could not only be the first uptrend in a bullish advancement to revisit the all-time high as the other major altcoins already have.