The technical analysis image provides an overview of the altcoin market capitalization, revealing the formation of a promising Cup and Handle pattern. This pattern is a classic technical indicator that often signals an upcoming bullish breakout.
Detailed Analysis:
Cup Formation: From 2020 to the end of 2024, the altcoin market cap formed the "cup" portion with a rounded bottom. This indicates a gradual accumulation and absorption of selling pressure from investors taking profits after the previous growth phase.
Handle Formation: After forming the "cup," the market underwent a slight correction, creating the "handle" of the pattern. The "handle" typically tends to move sideways or slightly downwards, reflecting market hesitation before a breakout.
Resistance Line: The resistance line is drawn connecting the peaks of the "cup" and "handle," indicating the price level that the market needs to surpass to confirm the uptrend.
Trading Volume: Trading volume generally decreases during the "handle" formation, suggesting weakening selling pressure. This is a positive signal, indicating the exhaustion of sellers.
Prediction:
Based on the Cup and Handle pattern, the altcoin market cap is predicted to explode in 2025 as the price breaks above the resistance line. The price target is determined by measuring the distance from the bottom of the cup to the resistance line and then adding it to the breakout point. In this case, the price target could reach over 9 trillion USD.