Altcoin market cap reaches $351.55B, nearing resistance at $350B, reminiscent of December 2020’s breakout.
RSI at 69.51 indicates strong momentum; surpassing 70 could align with a bullish altcoin rally in December 2024.
Breaking $350B resistance may lead to $600B by 2025, but a pullback to $190B remains possible if momentum falters.
Crypto analyst MikybullCrypto has suggested that December 2024 could be a pivotal month for altcoins. The focus is on the altcoin market capitalization excluding the top 10 cryptocurrencies, which currently hovers at $351.55 billion. The market is testing a crucial resistance level, drawing comparisons to the explosive growth seen in late 2020. A breakout above this level could fuel significant momentum across the altcoin market.
Resistance Levels and Market Recovery
The market is battling a long-standing resistance level around $350 billion, which has contained growth for months. Historical trends from December 2020, when the market surpassed a similar threshold, hint at the possibility of another surge. During that time, altcoin market capitalization grew parabolically after breaking key resistance.
Source: MikybullCrypto
Notably, the current market cap has recovered steadily over the past two years, forming higher lows and highs. This recovery indicates a positive trend, but the resistance at $350 billion remains a key barrier. If surpassed, the market could witness sharp upward movement, potentially setting the stage for future gains.
RSI Indicates Strong Momentum
The Relative Strength Index (RSI), a momentum indicator, further highlights the market’s potential. Currently at 69.51, the RSI is near the overbought zone, a level historically associated with significant upward movements. In December 2020, a similar RSI trend coincided with the market’s breakout above resistance, leading to a bullish rally.
While an RSI above 50 indicates strong market momentum, staying above the critical threshold of 70 would support bullish sentiment. However, failure to maintain this momentum could prompt a reversal or consolidation phase.
Possible Outcomes for December 2024
The current market setup suggests the potential for significant developments in December 2024. A breakout above $350 billion could attract increased investor interest and capital inflows. Additionally, projections indicate the possibility of the market reaching $600 billion by late 2025, representing substantial growth from current levels.
However, risks remain if the market fails to maintain its current trajectory. A retreat to $190 billion support levels, previously observed during pullbacks, cannot be ruled out. Macroeconomic factors, Bitcoin dominance, and regulatory developments will also influence market movements.