As the cryptocurrency market experiences a significant recovery, Bitcoin (BTC) continues to lead, while altcoins—especially Cardano (ADA)—are achieving notable growth.
A transformation in the altcoin market is imminent: Will bullish momentum prevail?
Market expert Patrick H recently shared his insights on social media, stating: "The altcoin market is attempting to establish a new bullish structure. Will we move to higher levels, or is it more likely to be rejected again?"
The collective question among market participants indicates a cautiously optimistic sentiment in the altcoin space as it considers the possibility of a trend reversal.
In this regard, experts revealed in recent analyses that the daily chart of the total market capitalization of altcoins (excluding the top ten cryptocurrencies) has unveiled significant developments.
After undergoing a prolonged bearish phase characterized by lower highs (LH) and lower lows (LL), the market seems to be on the brink of a significant shift.
Additionally, recent activity indicates that the downward channel has been broken, suggesting that bearish momentum may be weakening. Importantly, a higher low (HL) has formed near the $330 billion mark, establishing a critical support level, which is the first sign that the market trajectory may shift bullish.
Currently, the altcoin market faces resistance at the $375 billion level, and after the breakout, it is consolidating. To fully confirm the bullish market structure shift, the market must reach around $400 billion, an obvious higher high (HH).
Successfully breaking through this level will solidify the reversal and could trigger a rebound with $600 billion as the next local stop-loss point.
Conversely, if the market fails to break through—failing to reclaim the $400 billion mark and subsequently reversing—investors should closely monitor the critical support levels at $330 billion and $317 billion.
There may be a retest of the downward channel breakout, and a drop below $317 billion would invalidate the bullish setup, signaling a potential return to a downward trend.
Can Cardano continue its remarkable price rise?
In the past week, Cardano has stood out, with its price surging by 31%. This rise has brought the ninth-largest cryptocurrency back to the critical level of $1.11.
In stark contrast, the leading cryptocurrency Bitcoin (BTC) recently reached an all-time high of $108,000. Nevertheless, Cardano's current price is still over 64% lower than the historical high of $3.09 set in September 2021.
However, the bullish scenario outlined by market expert Patrick H. suggests that the altcoin market may experience a rebound in the coming months, with Cardano and other altcoins likely to continue experiencing upward price momentum.
Overall, the altcoin market is at a critical moment. Recent breakouts and the formation of higher lows are encouraging signs, but the path forward remains uncertain.
Successfully breaking through the $400 billion threshold is crucial for confirming a bullish reversal and unleashing further upward potential.