Altcoins Market on the Cusp of Change: Will Bullish Momentum Prevail?
The cryptocurrency market is experiencing a notable resurgence, with Bitcoin (BTC) leading the charge and altcoins, particularly Cardano (ADA), making significant gains. Market expert Patrick H recently shared insights on social media, highlighting the altcoins market’s attempt to build a new bullish structure.
A New Bullish Structure in the Making?
Patrick H’s analysis of the daily chart of the total altcoin market cap (excluding the top 10 cryptocurrencies) reveals important developments. After a prolonged bearish phase characterized by a descending channel, the market appears to be on the verge of a significant shift. The chart shows a breakout from the descending channel, suggesting that bearish momentum may be waning.
Key Support Levels and Resistance
A higher low (HL) has formed around the $330 billion mark, establishing a critical support level that serves as the first indication of a possible bullish shift in the market’s trajectory. The altcoin market is currently facing resistance at the $375 billion level, where it is consolidating following the breakout. To confirm a bullish market structure shift, the market must achieve a clear higher high (HH) at approximately $400 billion.
Implications of a Breakout
Successfully breaking the $400 billion level would solidify the reversal and could lead to a rally targeting $600 billion as the next local stop. Conversely, if the market experiences a failed breakout, investors should closely monitor key support levels at $330 billion and $317 billion. A retest of the descending channel breakout could occur, and a breakdown below $317 billion would invalidate the bullish setup, signaling a potential return to the downtrend.
Cardano’s Impressive Price Climb
Over the past week, Cardano has emerged as a standout performer, experiencing a substantial price increase of 31%. This surge has enabled the ninth-largest cryptocurrency by market capitalization to regain the critical $1.11 level. Despite Bitcoin’s recent all-time high of $108,000, Cardano’s current price remains over 64% below its all-time high of $3.09, reached in September 2021.
Outlook for Altcoins
With the bullish scenarios outlined by market expert Patrick H indicating a potential rally in the altcoin market in the coming months, Cardano and other altcoins may continue to experience upward price momentum. The recent breakout and formation of a higher low are promising signs, yet the path forward remains uncertain.
Conclusion
The altcoins market stands at a crucial juncture, with a successful push above the $400 billion threshold essential to confirm a bullish reversal and unlock further upside potential. As the market navigates this critical level, investors should closely monitor key support levels and resistance to determine the direction of the altcoin market.
Source: Newsbtc.com
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