Over the past few days, altcoins have made more progress than high-cap cryptocurrency assets as markets show further signs of recovery.

This has led to renewed calls for an alt season from industry analysts and observers. However, they can be a bit premature, as the big guys usually peak first.

When is the Alt season?

On August 26, a technical analyst at Rekt Capital noticed that there were several "bullish discrepancies" on altcoins. He added that they also "contribute to the development of early market structures" and potential future breakout models." Bullish divergence is a technical graphical model that signals a potential price reversal

Meanwhile, on August 25, a trader and analyst at Mags said that the altcoin season was coming after several months of downward and sideways movements. Such "chopsolidation" preceded altcoin breakthroughs in previous market cycles.

It is noted that the first phase begins before the holding, when altcoins begin to grow just before the holding of bitcoin. The second phase is a pause and a rollback, which we have been observing since halving and where everything is at the moment.

These two are followed by a parabolic stage, where there are large gains in a short period of time. Analysts believe that the alt season will begin later this year.

Several altcoins have overtaken Bitcoin's growth over the past seven days, showing double-digit gains. These include Solana (SOL, 12.3%), Tron (TRX, 23%), Cardano (ADA, 15%), Avalanche (AVAX, 30%) and Chainlink (LINK, 21%)

In addition, artificial intelligence-based assets were also on the rise, showing even greater gains. Among the AI leaders over the past week are Near Protocol (NEAR, 26%), Artificial Superintelligence Alliance (FET, 65%), Bittensor (TAO, 25%) and Render (RENDER, 43%)

A major step towards AI tokens occurred against the background of market expectations for the second quarterly earnings report from the technology and AI giant Nvidia, which is due to be released on Wednesday.