Altcoin
Will Altcoin Triple Its Value? Analysts predict a breakout!
- Altcoin market capitalization surpasses $1.1 trillion, signaling the potential for an “altseason.”
- Analysts expect a significant increase if the resistance levels are broken.
The altcoin market, a segment often overshadowed by its larger cousin Bitcoin [BTC]is currently making headlines thanks to its impressive upward trajectory.
Over the past two weeks, the collective market capitalization of these alternative cryptocurrencies has increased by more than 10%, rising from just under $1 trillion to a robust $1.1 trillion.
This rally has not only attracted the attention of traders, but has also generated considerable excitement about the potential start of an altcoin season.
The technical setup: Breaking resistance could mean breakout gains
In the world of cryptocurrency trading, patterns and technical levels play a crucial role in predicting market movements. Recent analysis has focused on an inverse head and shoulders pattern forming within the altcoin market.
This model, known for its reliability in predicting bullish reversals, suggests that if altcoins manage to decisively break out of this formation, there could be substantial market gains.
According to Trader Tardigrade, a respected figure in the cryptoanalysis community, this breakout could potentially triple the market capitalization of altcoins.
Source: Tardigrade Trader
Further strengthening this optimistic outlook, Rekt Capital, another experienced trader, he underlined that the altcoin market capitalization is on the verge of recording its highest weekly close since early April 2024.
Such a move could validate the bullish sentiment permeating the market and perhaps trigger a new altseason, a period characterized by rapid price increases of all altcoins.
Source: RektCapital
Technical analyst Yoddha he echoed these sentiments, suggesting a “crazy pump” in altcoin prices if the market manages to break out of the looming weekly resistance. The enthusiasm is also shared by Mustache, 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 trickle-down effect where capital flows from higher-tier coins down to smaller-cap tokens, amplifying gains across the board.
Michaël van de Poppe, founder of MN Trading, noticed that following a market-wide correction, altcoins underwent a 50-70% correction. However, he remains optimistic, predicting that the total market capitalization could rise to $15 trillion, marking a 450% increase from current figures.
On the technical front, AMBCrypto’s analysis of altcoin market cap supports the bullish narrative, noting that the market cap has turned significant resistance into support on the daily chart.
This technical maneuver could pave the way for further gains, especially if the altcoin market capitalization manages to surpass the next resistance levels at $1.2 trillion and $1.25 trillion.
Meanwhile, it is worth noting that altcoin market dominance is showing signs of growing momentum, particularly in the wake of Bitcoin. recent decline in dominance.