Crypto Market Shifts as Altcoin Season Index Rises 13% to 43

The cryptocurrency market remains in a transitional phase as the CMC Altcoin Season Index stands at 43 as of July 23, 2025, reflecting a modest increase from 38 the previous week and a significant climb from a monthly low of 18 in April 2025. While Bitcoin dominance persists, altcoin market capitalization has risen to $1.59 trillion, suggesting a gradual shift toward altcoin-friendly conditions ahead of a potential breakout phase. Analysts highlight five altcoins—Arbitrum (ARB), ONDO, Stellar (XLM), Hedera (HBAR), and Injective (INJ)—as poised to capitalize on strengthening technical setups and fundamental catalysts.

Arbitrum (ARB) is forming a classic cup-and-handle pattern on daily charts, with price consolidating between $0.461 and $0.5045. The token has absorbed sell pressure from recent token unlocks, with RSI stabilizing at 53.7 and MACD maintaining bullish momentum. A breakout above $0.5045, anticipated between August 2–5, could target $0.60–$0.63, supported by the $216M Arbitrum DAO grant and growing Layer-2 adoption. However, short-term consolidation near $0.415–$0.461 remains a key watchpoint, with a potential dip toward $0.374 possible before reaccumulation.

ONDO Coin has formed a double bottom pattern following its July 22 SEC filing for the 21Shares Ondo Trust S-1. The price briefly surged above the $1.13 neckline before retracting to retest the $0.94–$0.98 support zone. Elevated volume and ETF-related speculation suggest a confirmed bounce could validate the bullish structure, with targets at $1.30–$1.40 and a measured move up to $1.58. The RWA tokenization narrative and institutional interest continue to underpin momentum.

Stellar (XLM) has surged over 90% in July, driven by real-world asset (RWA) adoption and XRP’s legal clarity. The token is consolidating within a bullish flag pattern between $0.33 and $0.44, with RSI declining from 77.5 to 59. A sustained move above $0.37–$0.38 support could target $0.51, with further upside potential toward $0.60–$0.62. Institutional partnerships and CBDC pilots add to XLM’s appeal as a cross-border payment solution.

Hedera (HBAR) has broken out of a multi-month W pattern, rallying from $0.13–$0.14 to a high of $0.287 before retracing to test $0.23–$0.24 support. The BBTrend indicator turning green signals a likely continuation toward $0.35+. Institutional endorsements, including inclusion in Grayscale’s Smart Contract Platform Fund and Canary Capital’s trust filing, reinforce HBAR’s technical strength and market readiness.

Injective (INJ) has seen explosive growth in daily active addresses, surging 1,770% to 84,600 on July 19. The surge coincided with the Nivara upgrade and EVM testnet rollout, expanding smart contract capabilities. Price action reflects this momentum, with INJ testing its 200-day EMA near $13.6. A successful defense of this level could push the token toward $16.5, with a potential breakout to $19–$20 if on-chain activity sustains.

The current market cooldown provides a strategic entry point for investors targeting these altcoins, which are aligned with broader trends in RWA adoption, institutional integration, and Layer-2 innovation. Technical indicators and ecosystem developments suggest these tokens could lead the next altcoin rally once market conditions shift further away from Bitcoin dominance.

Source: [1] [Top Altcoins To Buy Today As Crypto Market Cools Before Next Bull Run] [https://coinpedia.org/price-analysis/top-altcoins-to-buy-today-as-crypto-market-cools-before-next-bull-run/]