The cryptocurrency market demonstrated renewed vigor as the week began, with traders shifting their focus from geopolitical tensions to promising institutional developments. Bitcoin (BTC) led the charge, surging past key resistance levels to trade at approximately $107,633. This impressive 3.1% gain in 24 hours brought the leading digital asset tantalizingly close to its all-time high, hovering near the $108,600 mark. The bullish sentiment was widespread, reflecting a broader return of risk appetite across financial markets. Traditional indices like the S&P 500 and Nasdaq posted gains of 0.9% and 1.4% respectively, while safe-haven assets like gold retreated. This positive correlation was also evident in crypto-related equities, with Coinbase (COIN) and Circle (CRCL) closing the trading day up 7.7% and 13%.

Altcoins Rally on Institutional ETF Momentum

While Bitcoin captured headlines, several altcoins posted even more substantial gains, fueled by specific, positive news catalysts. XRP was a standout performer, rallying over 6% to a price of $2.322 on the XRP/USDT pair. This surge was directly linked to the news that asset manager Purpose intends to launch a spot XRP exchange-traded fund (ETF) in Canada, signaling growing institutional interest in altcoin-focused investment products beyond Bitcoin and Ethereum. Similarly, Chainlink (LINK) notched a gain of nearly 7%, further contributing to a broad market uplift. Other major altcoins, including Solana (SOL) and Cardano (ADA), rose by 4.3% to $157.73 and 4.9% to $0.5863, respectively. This collective outperformance has sparked conversations among traders about the potential onset of an "alt season."

Is a True Alt Season Underway?

Despite the strong short-term performance of altcoins, some analysts urge caution. According to Nansen research analyst Nicolai Søndergaard, Bitcoin remains the primary market driver. He noted that while profits from BTC's ascent may trickle down to other assets, these altcoin rallies have historically been short-lived bursts rather than sustained runs. "BTC has mostly served as a trigger for altcoins," Søndergaard stated, emphasizing that the market's core focus is still squarely on Bitcoin's performance. Analysts at Bitfinex offered a more bullish short-term outlook, observing that recent aggressive selling and a spike in liquidations resemble past capitulation events that often precede a market recovery. They suggested that if BTC can maintain support in the $102,000-$103,000 range, it could signify that selling pressure has been absorbed, setting the stage for a broader recovery.

Dogecoin (DOGE) Shows Bullish Technical Structure

Dogecoin (DOGE) also participated in the rally, climbing 4.29% to reclaim the $0.180 level. The popular memecoin demonstrated notable resilience during the recent market-wide liquidations, holding its ground better than many major tokens. From a technical standpoint, DOGE established a clear pattern of higher highs and higher lows, breaking past the key resistance at $0.177 on significant volume. The immediate resistance zone is now between $0.179 and $0.181, while critical support has formed at $0.168. On-chain data supports this constructive price action, with daily active addresses remaining robust and network turnover hitting $1.05 billion. This sustained user engagement, potentially bolstered by speculation around a future DOGE ETF and its growing utility on networks like Base, provides a solid fundamental backdrop for traders watching for a continuation of the uptrend.

Looking ahead, the market's direction will be heavily influenced by macroeconomic factors, particularly the upcoming Federal Reserve meeting. While the consensus, according to the CME FedWatch tool, is for the Fed to hold rates steady, all eyes will be on Fed Chair Jerome Powell's press conference. His commentary on inflation and the economic outlook will be critical. As analysts from digital asset firm Swissblock noted, "Powell’s tone, not the rate decision, will drive volatility." Traders should brace for potential whiplash price action across all risk assets, including cryptocurrencies, as the market digests the Fed's forward guidance.