The altcoin market cap surged by $215 billion between August 19 and 22, a gain of more than 24% in 3 days, pushing Total2 back above $1 trillion. Key indicators, however, suggest altseason remains unconfirmed.

The rally followed President Donald Trump’s August 19 White House meeting with crypto executives. Since then, the market has cooled, with the global crypto market cap down 5.51% over the past 24 hours to $2.57 trillion.

Trump Remarks Spark a Broad Altcoin Rebound

At the meeting, Trump urged Congress to pass a “fair version” of the CLARITY Act and said a “sizable” government Bitcoin (BTC) purchase has been discussed. Bitcoin subsequently broke above $70,000 for the first time since June.

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Altcoins moved even faster. According to analyst Darkfost, mid and small caps led the advance, reversing a dormancy phase that began in November. During that stretch, roughly 80% to 85% of altcoins on Binance traded below their 200-day moving average (DMA).

“Today, more than half of the altcoins available on Binance are trading above their 200-DMA, signaling a regime shift,” Darkfost said.

Historically, Darkfost noted that gains of this scale are an intermediate signal of an early-stage altseason. He cautioned, however, that the market has entered overbought territory and may need a short-term breather.

Why Altseason Is Not Confirmed Yet

Bitcoin dominance tells a more cautious story. The metric stood at 59.69% on August 23, per TradingView, still above the level many traders watch for a broader rotation.

“A real low-cap altseason historically needs BTC.D to drop below 58%. Structure is improving, but altseason isn’t confirmed yet, so let’s wait for further confirmation,” analyst Ash Crypto noted.

The Altcoin Season Index provides another reason to remain cautious. The index currently stands at 49, indicating that fewer than half of the top-performing altcoins outperform Bitcoin over the measured period. The threshold for a confirmed altseason is typically 75, when at least 75% of the tracked altcoins have outperformed BTC.

The gap suggests that the recent rally, while broad, has not yet developed into the sustained market-wide rotation typically associated with an altseason.

Whether the rotation broadens may hinge on the Senate’s September 15 procedural vote on the CLARITY Act, the next major catalyst on the calendar.

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Source: BeInCrypto