Altcoin Market Recovery Hints at Selective Strength

The altcoin market has been experiencing a tentative recovery in recent weeks, with the broader market showing signs of life after months of underperformance. According to the latest edition of the Glassnode Altcoin Vector report, the Altcoin Season Index has reached its highest point since January, climbing to 49 points on March 16.

However, despite this increase, the index remains well below the 75-point threshold that would signal a confirmed 'altseason', indicating that the market's recovery is still selective rather than broad-based. The report notes that AI-focused tokens like Bittensor and NEAR Protocol have led gains, alongside exchange tokens, while many mid-cap altcoins continue to lag behind.

The Glassnode Altcoin Vector report emphasizes the importance of identifying which tokens are accumulating versus distributing in a market where capital is rotating selectively. One potentially bullish signal highlighted by the report is that Tether dominance has flashed bearish, historically a precursor to liquidity rotating into risk assets.