The cryptocurrency market has entered the new year with strong momentum, as altcoins experience significant rallies. Bitcoin’s ($BTC ) dominance has dropped notably, declining from 58.12% on December 31 to 56.89% today. This shift has created a favorable environment for altcoins like The AI Prophecy ($ACT ), which has surged over 25% today and 45% over the past week.
Technical Analysis: Falling Wedge Pattern
On the daily chart, ACT is trading within a falling wedge pattern, a classic bullish formation. This week’s price movement has driven ACT from its lower support level of $0.26 to its current price of $0.40. It is now nearing the upper wedge resistance, which coincides with a critical horizontal resistance zone around $0.43.
If ACT successfully breaks above the resistance trendline and the $0.43 horizontal resistance, the token could target higher resistance levels at $0.66, $0.81, and $0.95. A breakout from this zone could result in a potential upside of up to 132% from the current price.
Indicators Signal a Potential Breakout
Several key technical indicators suggest growing bullish momentum for ACT:
MACD (Moving Average Convergence Divergence): A bullish crossover has formed, indicating an upward trend is gaining strength.
RSI (Relative Strength Index): The RSI has climbed above 50, signaling increased buying pressure and the potential for further gains.
Additionally, Bitcoin’s dominance has fallen below 57%, creating a more supportive environment for altcoins to rally independently of Bitcoin’s price action. With Bitcoin stabilizing near $98,000, investors are looking to high-potential altcoins like ACT for enhanced returns.
Is a Breakout Imminent?
ACT’s current position near the upper resistance of the falling wedge, coupled with its proximity to the $0.43 horizontal resistance, makes the upcoming trading sessions pivotal. A breakout above this level could confirm the continuation of the bullish trend and open the path to higher targets.
Traders should remain cautious, watching for sustained trading volume to confirm the breakout’s validity. Broader market conditions and Bitcoin’s dominance will also play a crucial role in determining the sustainability of altcoin rallies.
Conclusion
The AI Prophecy ($ACT) is gaining traction as it approaches a critical resistance level. The combination of bullish technical patterns, favorable indicators, and declining Bitcoin dominance suggests that ACT may be poised for a significant breakout. Traders should closely monitor the $0.43 level and broader market dynamics as they position themselves for potential opportunities in the coming days.
