Bitcoin's [BTC] dominance has been on the rise for several weeks, suggesting that altcoins might have to wait longer for a rally. However, a potential bullish divergence on the charts indicates that this trend could shift soon, allowing altcoins like Solana [SOL] to gain bullish momentum.

Could Bitcoin Dominance Decrease Soon?

BTC dominance has consistently remained above the 50% mark. A rise in this metric typically suggests that altcoins are less likely to gain upward momentum. At the time of writing, BTC's dominance was at 54%, according to CoinStats.

Moreover, Bitcompare’s analysis of the Altcoin Season Index showed a reading of 20, which generally signals a Bitcoin season, as any value below 25 typically does.

However, this situation might be about to change. CryptoBullet, a well-known crypto analyst, recently tweeted about a bullish and bearish divergence on BTC's dominance chart. According to this analysis, while BTC's dominance has been increasing, a bearish divergence has emerged on the Relative Strength Index (RSI) chart.

This divergence could indicate a potential dip in Bitcoin's dominance moving forward. A similar pattern was observed in late 2021, which resulted in an increase in BTC dominance over the following months. If this bearish divergence pattern holds, altcoins could see significant gains soon.

Could Solana Benefit from a Shift?

If BTC dominance decreases, it could lead to an altcoin rally. To explore this possibility, Bitcompare examined Solana’s current state to see if it showed any signs of a potential bull rally. According to CoinMarketCap, SOL's value fell by over 10% in the past week and was trading at $138.57 at press time, with a market capitalization exceeding $64 billion.

The negative aspect is that while SOL's trading volume increased, its price dropped, reinforcing the downtrend. The token's weighted sentiment also declined sharply, suggesting a prevailing bearish sentiment around SOL.

However, there is a silver lining: SOL’s Open Interest decreased, which often signals a possible change in the ongoing price trend. Bitcompare’s analysis of SOL’s daily chart revealed that the Money Flow Index (MFI) had a downtick, indicating a potential further price decline to around $127.

On the other hand, the Chaikin Money Flow (CMF) moved upward. If BTC dominance falls, SOL could potentially turn bullish. In a bullish scenario, SOL might aim for $163 and eventually set its sights on $187.