Altcoin market cap surges to $338.85B, breaking a 3-year downtrend; bullish momentum gains strength above $320B support.
RSI indicates strong upward momentum at 60-70, signaling potential growth; $360B resistance is the next major test.
Falling below $320B support risks consolidation; breaking $360B resistance could target $400B and higher levels.
According to analyst MikybullCrypto, the altcoin market capitalization has surpassed a crucial three-year descending trendline, potentially the start of a bullish phase. This breakout comes after a prolonged period of decline, during which the market capitalization dropped from a peak of nearly $640 billion in 2021 to lows around $120 billion in late 2022. The current market capitalization is at $338.85 billion, with a confirmed weekly close above the critical resistance level.
Historical Market Trends and Recent Developments
The altcoin market endured a sustained downtrend from 2021 to early 2023, highlighted by a gradual decline in value. This bearish trend persisted throughout the 2022-2023 period, emphasizing weak market sentiment during the broader cryptocurrency downturn.
Source: MikybullCrypto
However, recent price movements suggest a change. Breaking above the $320 billion to $330 billion resistance range indicates a shift in momentum. The current market capitalization now rests comfortably above this trendline, transforming it into a potential support level.
The weekly close above this resistance level further solidifies the shift, offering optimism for continued upward movements. With this level now acting as support, the market's technical structure has improved, signaling a possible end to the bearish cycle observed in previous years.
Momentum Indicators Suggest Further Growth
Momentum indicators also reveal positive trends in the altcoin market. The Relative Strength Index (RSI)has climbed sharply into the 60-70 range. This zone, typically associated with bullish conditions, indicates sustained upward momentum without reaching overbought levels. The breakout suggests increased buying activity, further reinforcing the bullish sentiment.
Key Levels to Watch
Resistance at $360 billion is the next critical hurdle. Breaking this level could pave way toward higher targets, including $400 billion. On the downside, the $320 billion support remains vital for sustaining the current trend. Analysts warn that falling below this level could reintroduce consolidation or test lower ranges, including $240 billion.