The cryptocurrency market is showing renewed signs of risk appetite, with several altcoins significantly outperforming Bitcoin (BTC) at the start of the month.
Market analyst Michaël van de Poppe highlighted the shift in momentum, pointing to strong breakouts across Ethereum-based projects and meme tokens.
In a post shared on X, van de Poppe described the early performance as “very impressive,” noting that assets such as Pepe (PEPE) and Pump.fun native token (PUMP) have recorded sharper gains than BTC.
According to the him, their recent move above the 21-day moving average is a key technical signal that suggests accelerating momentum for altcoins in the coming weeks.
Ethereum Leads as Altcoins Gain Momentum
Ether (ETH) has been one of the standout performers in the latest market move. The second-largest cryptocurrency by market capitalization is up 1.2% in the past 24 hours, trading at $3,149.45 at the time of writing. Meanwhile, it has gained by over 7.1% in the past seven days.
ETH’s upward movement has often served as a signal for broader altcoin strength, particularly for tokens built within its ecosystem. Historically, sustained ETH rallies tend to precede periods of increased activity across decentralized finance and meme token markets.
van de Poppe noted that Ethereum-based projects are currently breaking out more decisively than Bitcoin, a pattern that typically indicates improving sentiment toward higher-risk assets.
Meme Tokens Record Sharper Gains
Meme tokens have also posted notable gains, reinforcing the broader altcoin market rally narrative. Some of the memecoins posting strong gains include PEPE and PUMP.
PEPE is trading at $0.00000648, up more than 53% in the past seven days, making it one of the strongest performers among large-cap meme tokens. In the past 24 hours, at the time of writing, the memecoin has recorded an increase of over 4.4%.
Its price rise mirrors renewed speculative interest, often seen during periods when traders rotate capital away from Bitcoin into higher-volatility assets.
Likewise, PUMP has gained over 23% within the past week, adding to signs that risk-on behaviour is returning across segments of the market that typically lead during bullish phases. Trading at $0.0023, PUMP has seen a slight dip of 0.28% in the past 24 hours.
In contrast, Bitcoin’s gains have been comparatively modest amid trading above the $91,400 level at press time. The largest cryptocurrency by valuation is up around 1.6% over the past 24 hours and 4.3% in the past seven days, underperforming both ETH and several major altcoins.
Recall that Bitcoin saw its worst Q4 performance in 2025 since the 2018 market slump.While BTC remains the market’s primary liquidity anchor, periods of altcoin outperformance are often associated with traders seeking higher returns once Bitcoin stabilizes.
Generally, crypto analysts interpret this divergence as a potential early-stage altcoin cycle rather than a sign of weakness in BTC itself.
Read also: Memecoins explained: Exploring their risks and how to approach them wisely
Technical Signals Point to Continued Strength
van de Poppe also emphasized the importance of the 21-day moving average, describing the recent Ether’s breakout above this level as a strong technical signal for altcoins.
Notably, the 21-day moving average is widely used by traders to assess short-term momentum and trend continuation. According to the analyst, breaking this level reduces the likelihood of an immediate market stall and increases the probability of continued upside across altcoin markets.
However, market participants remain careful, noting that broader macroeconomic conditions and Bitcoin’s longer-term trend will continue to influence overall market direction. The current rally also suggests a shift in sentiment, with investors showing greater willingness to allocate capital to altcoins after weeks of consolidation.
While short-term volatility remains a risk, the combination of ETH strength, meme token outperformance, and improving technical indicators has strengthened the case for further altcoin momentum in the near term. As the market moves deeper into the month, Bitcoin would either regain dominance or the altcoin market rally would continue to accelerate.
Read also: Best Crypto To Buy Now (Top 16 Altcoins To Have in Your Portfolio)
