Altcoins
Will Altcoins triple in value? Analysts predict a breakout!
- Altcoin market cap exceeds $1.1 trillion, signaling the potential for a “new season.”
- Analysts predict significant upside if resistance levels are broken.
The altcoin market, a segment often overshadowed by its big cousin Bitcoin [BTC]is currently making headlines with its impressive upward trajectory.
Over the past two weeks, the collective market capitalization of these alternative cryptocurrencies has jumped more than 10%, from just under $1 trillion to a solid $1.1 trillion.
This rally not only caught the attention of traders, but also generated considerable excitement about the potential start of an altcoin season.
The Technical Setup: Breaking Resistance Could Mean Breakout Gains
In the world of cryptocurrency trading, patterns and technical levels play a crucial role in predicting market movements. Recent analysis has highlighted an inverse head-and-shoulders pattern forming in the altcoin market.
This model, renowned for its reliability in predicting bullish reversals, suggests that if altcoins can decisively break through this formation, substantial gains could be made in the market.
According to Trader Tardigrade, a respected figure in the crypto analysis community, this breakout could potentially triple the market capitalization of the altcoin.
Source: Trader Tardigrade
Further reinforcing this optimistic outlook, Rekt Capital, another seasoned trader, underlines that the altcoin market cap is poised to post its highest weekly close since early April 2024.
Such a move could validate the bullish sentiment permeating the market and possibly trigger a new alt season, a period marked by rapid increases in altcoin prices.
Source: RektCapital
Technical Analyst Yoddha echoes these sentiments, suggesting an “insane pump” in altcoin prices if the market manages to move past impending weekly resistance. This enthusiasm is also shared by Mustache, who alert his supporters with the imminent arrival of “altseason”.
The sequence of market movements generally follows a pattern in which Bitcoin leads, followed by Ethereum, and then the broader altcoin market. This trend suggests a cascading effect where capital flows from blue chip coins to smaller cap tokens, amplifying gains across the board.
Michaël van de Poppe, founder of MN Trading, note that following a market-wide correction, altcoins corrected by 50-70%. He remains optimistic, however, predicting that the total market capitalization could reach $15 trillion, a 450% increase from current figures.
On the technical side, AMBCrypto’s analysis of the altcoin’s market cap supports the bullish narrative, noting that the market cap turned significant resistance into support on the daily chart.
This technical maneuver could pave the way for further gains, especially if the altcoin market cap can break through the next resistance levels at $1.2 trillion and $1.25 trillion.
At the same time, it is worth noting that altcoin market dominance is showing signs of growing momentum, especially following the rise of Bitcoin. recent decline in dominance.