Altcoin dominance is approaching a critical juncture as it compresses at the tip of a falling wedge pattern that has been forming since 2018. Currently at 7.3%, this metric signals a potential volatility expansion, with the Relative Strength Index (RSI) trending upward, indicating exhausted selling pressure. Analysts suggest this could lead to a capital rotation into mid-cap and small-cap assets. Bitcoin dominance remains between 57% and 59%, but the technical setup for altcoins suggests a possible shift. Historical patterns indicate that breakouts from such formations often result in significant rallies, potentially heralding an "altseason." Key indicators, including RSI divergence, support this outlook, hinting at a momentum shift that could favor altcoin expansion. However, traders are advised to watch for volume spikes and confirmatory candles to validate this potential breakout.