The cryptocurrency market has started the new year with positive momentum, as major altcoins experience upward rallies. Bitcoin ($BTC ) dominance has significantly declined, dropping from 58.12% on December 31 to 56.89% today. This shift has created a favorable environment for altcoins like The AI Prophecy ($ACT ), which is experiencing a notable surge—up over 25% today and 45% over the past week.

Technical Analysis: Falling Wedge Pattern

The daily chart of ACT reveals that the token has been trading within a falling wedge pattern, a classic bullish technical formation. This week’s price action has driven ACT from the lower support of $0.26 to its current price of $0.40, approaching the upper wedge resistance and aligning with a critical horizontal resistance zone.

Should ACT manage to break through the resistance trendline and the horizontal resistance level around $0.43, it could target further resistance levels at $0.66, $0.81, and $0.95. A successful breakout from this zone could result in a potential price increase of up to 132% from the current value.

Indicators Point to a Potential Breakout

Key technical indicators are signaling growing momentum for ACT. The Moving Average Convergence Divergence (MACD) is showing a bullish crossover, reflecting an increasing upward trend. Additionally, the Relative Strength Index (RSI) has moved above 50, suggesting rising buying pressure and the possibility of further gains.

The decline in Bitcoin’s dominance below 57% has created a more favorable environment for altcoins like ACT to rally independently of Bitcoin's price action. With Bitcoin stabilizing near $98,000, investors are increasingly seeking high-potential altcoins for enhanced returns.

Is an Upside Move Imminent?

ACT’s position near the upper resistance of the falling wedge, combined with its proximity to horizontal resistance at $0.43, makes the upcoming trading sessions critical. A breakout above this level could confirm the continuation of its bullish trend and set the stage for a move toward higher resistance levels.

Traders should remain cautious and monitor for sustained volume to validate any breakout. Broader market conditions and Bitcoin's dominance will also play key roles in determining the sustainability of altcoin rallies.

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