The cryptocurrency market witnessed a dramatic shift on Thursday as altcoins surged in response to former U.S. President Donald Trump’s unexpected pause on newly imposed tariffs. While Bitcoin struggled to maintain momentum, investors rotated into high-potential altcoins like Flare (FLR), Ondo (ONDO), and Bittensor (TAO)—three of the top-performing digital assets in the past 24 hours.
This sudden policy reversal provided a breath of fresh air to global financial markets, especially after Bitcoin had dropped to $74,508 earlier in the week—the lowest level since November. With macroeconomic uncertainty temporarily eased, risk appetite returned, fueling strong rebounds across the altcoin ecosystem.
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Why Altcoins Are Outpacing Bitcoin in Q2 2025
Bitcoin, despite reclaiming some ground to trade near $82,200—a 7.4% gain over 24 hours—failed to sustain its rally toward $83,588. Its dominance has recovered to 62%, reflecting a total market cap of approximately $1.63 trillion. However, this resurgence in Bitcoin’s dominance hasn’t stopped select altcoins from delivering outsized returns.
Market analysts suggest that when macro fears subside—even temporarily—investors often shift capital from large-cap safe havens like Bitcoin into higher-beta altcoins with strong technical setups and niche narratives. In this case, artificial intelligence (AI), decentralized finance (DeFi), and blockchain interoperability are driving momentum.
Flare led the charge with a 26% surge to $0.0145, followed closely by Ondo (+18.37% at $0.8580) and Bittensor (+20% at $236). These gains highlight growing confidence in projects offering real-world utility amid evolving regulatory and economic conditions.
But can this momentum last? And more importantly, can altcoins outperform Bitcoin in the second quarter of 2025?
The answer may lie in both technical patterns and broader investor behavior during periods of policy-driven volatility.
Flare (FLR): Breaking Out of a Downtrend?
Flare’s impressive rebound came after bouncing off a key support level at $0.0108, forming a potential reversal pattern within its descending channel. The price briefly stalled near the upper resistance at $0.0187 but remains actively trading around the channel's midpoint at $0.0145.
Two key indicators confirm rising bullish sentiment:
- MACD: The blue MACD line crossed above the red signal line, generating a buy signal.
- RSI: After dipping into oversold territory (25.64), the Relative Strength Index climbed back above 50, indicating renewed buying pressure.
Currently, Flare is testing temporary support near the 50-day EMA at $0.0156. If bulls retain control, a breakout above the channel resistance could unlock further upside. However, traders should remain cautious—descending channels often reflect strong bearish trends that don’t break easily.
A failure to hold current levels might lead to another drop toward $0.0108. Conversely, sustained buying could propel FLR toward uncharted territory, especially if market sentiment stays positive.
Ondo (ONDO): Is a Bottom Forming?
Ondo showed resilience Thursday, trading at $0.8500 and holding above the midpoint of its downward channel. This positioning suggests early signs of accumulation, with eyes now on a potential breakout toward $0.9223—the confluence of channel resistance and the 50-day EMA.
Technically, Ondo is building a promising setup:
- RSI Breakout: The RSI has cleared a falling trendline resistance, signaling weakening bearish momentum.
- MACD Buy Signal: A bullish crossover reinforces the possibility of continued upward movement.
If ONDO breaks through $0.9223, the next major target lies at $1.4725—the high point tested in June 2024. This would represent a significant reversal from recent lows.
However, failure to突破 (break out) could trigger profit-taking and renewed selling pressure. In that scenario, downside risks include a retest of the channel midpoint or even a fall to long-term support at $0.5687—a level that held firm during multiple tests in August, September, and November 2024.
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Bittensor (TAO): AI-Powered Momentum Builds
Bittensor, one of the leading AI-focused cryptocurrencies, defended critical support at $175 during Monday’s tariff-induced selloff. Following Trump’s tariff pause, buyers stepped in aggressively, pushing TAO above $200 and reaching $236 by Thursday.
The chart reveals a developing descending wedge pattern, historically a bullish reversal formation. With:
- MACD generating a clear buy signal
- RSI rising toward neutral from oversold levels
…many traders believe Bittensor is preparing for a powerful breakout.
A confirmed move above the wedge’s upper boundary could trigger a measured rise of up to 50%, targeting $393—calculated from the widest part of the wedge. This would represent one of the strongest quarterly performances among AI tokens.
Still, resistance looms ahead:
- 50-day EMA at $272
- 100-day EMA at $330
- 200-day EMA at $373
On the downside, the $175 support zone—tested in July and August 2024—remains the primary defense level. As long as it holds, the path for higher prices remains open.
Frequently Asked Questions (FAQ)
Q: Why did altcoins rise after Trump paused tariffs?
A: The temporary suspension of broad tariffs reduced near-term macroeconomic uncertainty, improving investor risk appetite. This typically benefits high-growth assets like altcoins more than established ones like Bitcoin.
Q: Can Flare sustain its rally above $0.0145?
A: Yes—if it maintains support above $0.0108 and breaks past $0.0187 resistance. However, ongoing pressure from its descending channel means volatility is likely to continue.
Q: What drives Ondo’s price action?
A: Ondo’s value is tied to institutional-grade tokenized assets and real-world asset (RWA) adoption. Technical momentum is now aligning with fundamental interest, boosting short-term prospects.
Q: Is Bittensor a good long-term AI bet?
A: Bittensor’s decentralized machine learning network gives it unique utility in the AI-blockchain space. Combined with strong technicals, it presents compelling potential for both short- and mid-term growth.
Q: Will Bitcoin lose dominance if altcoins keep rising?
A: Possibly. While BTC dominance rebounded to 62%, sustained altcoin strength in Q2 2025 could shift capital flows, especially if macro conditions stabilize further.
Q: How do I spot early breakout opportunities like these?
A: Watch for key technical patterns (like wedges or channels), confirm with MACD and RSI, and align trades with macro developments—such as policy changes affecting global markets.
Final Thoughts: A Shifting Landscape
While Bitcoin remains the cornerstone of crypto portfolios, recent movements show that well-positioned altcoins can outperform during transitional phases—especially when driven by macro catalysts and strong technical setups.
Flare, Ondo, and Bittensor each represent distinct narratives: interoperability, real-world assets, and AI decentralization. Their simultaneous rise underscores a maturing market where fundamentals and technicals increasingly converge.
As we move deeper into Q2 2025, traders should stay alert for similar convergence points—where policy shifts meet technical readiness—and be ready to act.
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By combining macro awareness with technical discipline, investors can navigate uncertainty and capitalize on emerging trends—just as they did with Thursday’s powerful altcoin surge.