Altcoin market cap breaks multi-year trendline resistance, analyst predicts potential bullish reversal
Altcoin market cap surges to $338.85 billion, breaking a 3-year downtrend; bullish momentum gains strength above $320 billion support.
The RSI indicates strong upward momentum at 60-70, indicating potential growth; the $360 billion resistance is the next major test.
A break below the $320 billion support risks consolidation; a break below the $360 billion resistance could lead to a move towards $400 billion and above.
According to analyst MikybullCrypto, the altcoin market cap has broken above a crucial three-year-old descending trendline, which could mark the beginning of a bullish phase. This breakout comes after an extended period of decline, during which the market cap fell from a peak of nearly $640 billion in 2021 to lows of around $120 billion in late 2022. The current market cap is $338.85 billion, with a confirmed weekly close above the critical resistance level.
Historical market trends and recent developments
The altcoin market suffered a sustained downtrend from 2021 to early 2023, highlighted by a gradual decline in its value. This downtrend persisted throughout the 2022-2023 period, accentuating weak market sentiment during the broader crypto downturn.
Source: MikybullCrypto
However, recent price movements suggest a shift. The break above the $320 billion to $330 billion resistance range indicates a change in momentum. The current market cap now sits comfortably above this trend line, making it a potential support level.
The weekly close above this resistance level further consolidates the turnaround, offering optimism for the continuation of bullish moves. With this level now acting as support, the technical structure of the market has improved, indicating a possible end to the bearish cycle seen in previous years.
Momentum indicators suggest further growth
Momentum indicators also reveal positive trends in the altcoin market. The Relative Strength Index (RSI) has sharply risen to the 60-70 range. This zone, usually associated with bullish conditions, indicates sustained bullish momentum without reaching overbought levels. The breakout suggests increased buying activity, further reinforcing the bullish sentiment.
Key levels to watch
The resistance at $360 billion is the next critical hurdle. Breaking through this level could pave the way for higher targets, including $400 billion. On the downside, the support at $320 billion remains vital to sustain the current trend. Analysts warn that falling below this level could reintroduce consolidation or test lower ranges, including $240 billion.