Altcoin
Analysts are predicting a “crazy” Altcoin pump in the coming weeks
There is a lot of talk about a potential increase in the value of altcoins in the coming weeks. An analyst in the crypto community he underlined an inverse head and shoulder pattern, which typically indicates a move from a bear market to a bull market. If this pattern leads to a breakout in the coming weeks, it could cause the altcoin market to triple in value.
Signs of the breakup
Based on analysis from a community member, it is suggested that we may be at the right shoulder end of a market pattern, indicating a potential breakout. While this pattern is not foolproof, it is generally a reliable signal of upcoming market movements. The most common entry point is when the price breaks above a certain level, with a stop placed above or below the right shoulder, corresponding to the market high and low respectively.
According to this model, the profit target is determined by the difference between the minimum and maximum points, with the addition or subtraction of the breakout price (market low or high). This system provides a logical approach to market trading based on price movements.
Rekt Capital, another famous and self-acclaimed crypto analyst, recently shared that the altcoin market capitalization is on track to reach its highest weekly close since early April this year, according to a market capitalization projection initially outlined in February 2024.
According to the latest update, the market capitalization of altcoins stands at $1.16 trillion (excluding Bitcoin), while the total market capitalization of cryptocurrencies stands at $2.51 trillion.
What is sparking hope for altcoins?
Bitcoin’s dominance waxes and wanes market capitalization are fueling optimism for alternative coins, which include all cryptocurrency tokens except Bitcoin, such as Ethereum (ETH), Solana (SOL), and Polygon (MATIC). The market cap has been rising recently, with Ether approaching a significant resistance level after gaining 27% in value over the past week.
Cryptocurrency analysts and traders alike are closely watching alternative coins. Historical trends show that Bitcoin tends to make the first move, followed by Ethereum and then the rest of the alternative coins, as capital flows from the highest-cap cryptocurrencies to the lowest-cap cryptocurrencies.
According to the founder of Capital MN, a 25% market correction occurred recently, leading to an average 50% to 70% correction for the alternative coins and altcoin market. He predicts that the total market capitalization will rise to an impressive $15 trillion.