Analysts note that the altcoin market cap has rallied steadily in recent weeks, mirroring optimism around regulatory shifts and the potential approval of altcoin-focused ETFs. The RSI's move toward 70 suggests strong momentum but also raises caution about a potential short-term pullback.

"Crossing above $1.2 trillion would be a major psychological milestone," said one trader, adding that it could trigger fresh inflows if accompanied by sustained buying pressure.

Institutional sentiment is improving as the SEC signals readiness to fast-track altcoin ETFs, while firms such as Pantera Capital have announced billion-dollar allocations into Solana and other projects. This combination of technical strength and institutional support has heightened speculation that altcoins may be on the verge of a broader breakout.

If altcoins successfully breach the $1.2 trillion cap with RSI holding near or above 70, market watchers expect momentum to accelerate, potentially ushering in the long-discussed "altcoin season." However, failure to clear resistance could lead to a near-term correction before further upside.