Altcoin market cap breaks 3-year trendline resistance at $338.85B, signaling a possible start to altseason excitement.
RSI nears overbought levels at 70, reflecting strong bullish momentum and highlighting a pivotal point for altcoin market growth.
Analysts eye the breakout's sustainability, with the blue resistance zone being crucial for shaping the altcoin market's mid-term trends.
A critical three-year trendline barrier has been overcome by the altcoin market capitalization, which does not include the top ten cryptocurrencies. This development could signal a major shift in market momentum, igniting excitement for a potential altseason. As the current market cap nears $338.85 billion, a 0.30% increase highlights a growing interest in smaller cryptocurrencies. The test of a long-term resistance zone marks a critical moment for the market’s direction.
Resistance Break Signals Growing Bullish Momentum
According to crypto analyst Mikybull Crypto, a downward trendline has defined altcoin market cap behavior since 2021. This trendline connected important peaks, including the $640 billion high during the 2021 bull run. However, the market faced a prolonged downtrend, hitting a low of $120 billion in mid-2022. Since then, a steady recovery has reshaped market dynamics.
Besides market recovery, the breakout above the blue resistance zone suggests altcoins could regain momentum. The rally starting in mid-2023 pushed the market cap closer to this critical level. Moreover, the Relative Strength Index (RSI) now trends upwards, nearing overbought levels around 70. This momentum indicator highlights strong bullish activity, further supporting the likelihood of continued growth.
Source: Mikybull Crypto
RSI and Trendline Insights Hold Key to Market Direction
The RSI’s correlation with market cap resistance tests provides vital insights into potential movements. Previously, similar RSI peaks aligned with significant market activity. The current RSI position shows bullish momentum but also signals caution due to its proximity to overbought territory.
Additionally, this trendline break could trigger a long-term trend reversal for altcoins. However, market participants should closely monitor the reaction to the resistance zone. If sustained, this breakout could open the door for further market growth. Conversely, rejection might lead to temporary retracements.
Consequently, altcoin enthusiasts are eager to see how this development unfolds. Mikybull Crypto emphasizes the importance of the blue resistance zone as a determinant of mid-term trends. Moreover, the RSI’s trajectory suggests that momentum could favor bulls in the coming weeks.
The post Altcoin Rally Gathers Steam, Market Cap Hits $338B Amid Bullish Momentum appeared first on Crypto News Land.
