- Altcoin market cap exceeds $1.1 trillion, signaling potential for an ‘altseason.’
- Analysts predict a significant surge if resistance levels are broken.
The altcoin market, a segment often shadowed by its bigger cousin Bitcoin [BTC], is currently making headlines with its impressive upward trajectory.
Over the past two weeks, the collective market capitalization of these alternative cryptocurrencies has surged by more than 10%, climbing from just under $1 trillion to a robust $1.1 trillion.
This rally has not only caught the eye of traders but has also stirred considerable excitement about the potential onset of an altcoin season.
The technical setup: Breaking resistance could mean breakout gains
In the crypto trading world, patterns and technical levels play a crucial role in forecasting market movements. Recent analysis has honed in on an inverse head-and-shoulders pattern forming within the altcoin market.
This pattern, noted for its reliability in predicting bullish reversals, suggests that if altcoins can decisively break through this formation, there could be substantial market gains.
According to Trader Tardigrade, a respected figure in the crypto analytics community, this breakout could potentially triple the altcoin market cap.
Source: Trader Tardigrade
Further bolstering this optimistic outlook, Rekt Capital, another seasoned trader, pointed out that the altcoin market cap is on the verge of posting its highest weekly close since early April 2024.
Such a move could validate the bullish sentiment permeating the market and possibly trigger a new altseason—a period marked by rapid price increases across altcoins.
Source: RektCapital
Technical analyst Yoddha echoed these sentiments, suggesting an “insane pump” in altcoin prices if the market can surpass the looming weekly resistance. The enthusiasm is also shared by Moustache, who alerted his followers to the imminent arrival of ‘altseason.’
The sequence of market movements typically follows a pattern where Bitcoin leads, followed by Ethereum, and then the broader altcoin market. This trend suggests a cascading effect where capital flows from top-tier coins down to smaller-cap tokens, amplifying gains across the board.
Michaël van de Poppe, founder of MN Trading, noted that following a market-wide correction, altcoins corrected by 50-70%. However, he remains bullish, projecting the total market capitalization could ascend to $15 trillion, marking a 450% increase from the current figures.
On the technical front, AMBCrypto’s analysis of the altcoin market cap supports the bullish narrative, noting that the market cap has flipped a significant resistance into support on the daily chart.
This technical maneuver could pave the way for further gains, especially if the altcoin market cap can breach the next resistance levels at $1.2 trillion and $1.25 trillion.
Meanwhile, it is worth noting that the altcoin market dominance is showing signs of increasing momentum, particularly in the wake of Bitcoin’s recent drop in dominance.
Powered by WPeMatico
