The crypto market has started July on a stronger note, with investor confidence slowly returning after weeks of heavy selling. Although Bitcoin briefly climbed above $64,000 before pulling back to around $61,933, several altcoins have continued to post strong gains.
According to blockchain analytics platform Santiment, this suggests that capital is quietly rotating back into oversold altcoins as traders move past the fear that dominated the market in late June.
Altcoins Lead the Weekly Rally
Santiment reported that several altcoins delivered impressive weekly returns. MemeCore led the market with an 89% surge, followed by Cardano (ADA), which gained 25%. DEXE climbed 23%, while Bitcoin Cash (BCH) and WhiteBIT (WBT) advanced 22% and 20%, respectively.
Ethereum has also shown fresh strength after reclaiming the $1,800 level. Santiment’s on-chain data shows that wallets holding less than 0.01 ETH increased their share of the supply by 1.82% over the past month. At the same time, wallets holding between 100 and 100,000 ETH added another 1.73%.
The data suggests both retail investors and large holders are accumulating Ethereum, while most selling pressure is coming from mid-sized holders, exchange liquidity providers, and short-term traders. This balanced accumulation is viewed as a positive sign for Ethereum heading into the second half of 2026.
July Could Bring Stronger Altcoin Momentum
Crypto analyst Michaël van de Poppe says Bitcoin appears to be either bottoming or moving through an accumulation phase. As Bitcoin pushes higher and fear continues to fade, he expects altcoins to accelerate even further.
His outlook includes Bitcoin breaking above $65,000, followed by altcoins moving out of their year-long downtrend. He expects one to two months of strong momentum before a correction in September or October, with another major rally likely during the fourth quarter.
Analysts Urge Investors to Stay Selective
Despite the improving outlook, analysts say not every altcoin will recover equally.
Darkfost from CryptoQuant noted that nearly 40% of altcoins are still trading below 25% of their all-time highs, highlighting how weak much of the sector remains.
With more than 53 million cryptocurrencies now listed and around 60,000 new tokens launching every day, liquidity is spread across a much larger market than in previous cycles. As a result, analysts recommend focusing only on fundamentally strong projects.
Meanwhile, market commentator Crypto Thro said Altseason 2026 is beginning to build as liquidity gradually returns to altcoins. However, analysts agree that careful project selection will be more important than simply following the broader market rally.
