The altcoin market has been on a rollercoaster, with the Total.3 market cap (excluding Bitcoin and Ethereum) navigating within a tight descending channel for months. As it approaches a critical resistance level, traders and investors are on edge, wondering if this is the moment when altcoins will surge or if another pullback is on the horizon. In this analysis, we’ll break down the current market structure and predict the next potential move for TOTAL3. Will we see a breakout to new highs, or is a rejection imminent? Let’s dive in.
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The chart I've shared shows the Crypto Total Market Cap excluding $BTC and $ETH (TOTAL3) on a daily timeframe. Here’s an analysis and prediction of the next possible move:
Analysis:
Descending Channel:
The market cap has been moving within a descending channel (outlined by the two white trend lines) since around April.
The price has recently bounced off the lower boundary of this channel and is now approaching the upper boundary.
Resistance Levels:
The current market cap is near the upper trendline of the channel, which acts as resistance.
Additionally, there is horizontal resistance around the $640 billion mark, which aligns with previous price action.
Support Levels:
There is a support zone around $560 billion and another stronger support near $480 billion, as indicated by the grey shaded areas.
These areas have historically acted as demand zones where the market has rebounded.
Recent Price Action:
The market cap has seen a significant bounce from the support near $560 billion and is approaching the upper boundary of the channel.
The current market cap is just above $616 billion, showing signs of bullish momentum.
Prediction:
Scenario 1 - Breakout Upwards:
If the market cap breaks above the upper boundary of the descending channel and the resistance at around $640 billion, this could signal a bullish breakout.
In this case, the market cap could potentially move towards the next resistance levels at $680 billion and beyond, possibly reaching $720 billion if the momentum is strong.
Scenario 2 - Rejection and Pullback:
If the market cap gets rejected at the upper trendline of the channel or around the $640 billion resistance, it could pull back towards the $560 billion support level.
A break below $560 billion could lead to a retest of the lower support zone near $480 billion.
Conclusion:
The next move for the TOTAL3 market cap depends heavily on whether it can break out of the descending channel. A successful breakout could lead to a strong bullish run, while a rejection could see the market cap pulling back to lower support levels. Traders should watch for confirmation of a breakout or a rejection in the coming days.
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