Altcoin Market Breaks Out of Bearish Phase, Eyes $400 Billion Resistance
As the cryptocurrency market experiences a resurgence, Bitcoin (BTC) leads while altcoins, particularly Cardano (ADA), show significant gains.
Altcoins Market On The Cusp Of Change: Will Bullish Momentum Prevail?
Market expert Patrick H noted on social media that the altcoins market is attempting to establish a new bullish structure and questioned whether this will lead to higher levels or another rejection. This reflects cautious optimism regarding a potential trend reversal.
An analysis revealed that the daily chart of the total altcoin market cap, excluding the top 10 cryptocurrencies, shows important developments after a prolonged bearish phase characterized by a descending channel with lower highs and lower lows. Recent activity indicates a breakout from this channel, suggesting that bearish momentum may be waning.
A higher low has formed around the $330 billion mark, establishing a critical support level. Currently, the altcoin market faces resistance at the $375 billion level, consolidating post-breakout. For confirmation of a bullish shift, the market must achieve a clear higher high at approximately $400 billion. A successful break above this level could lead to a rally targeting $600 billion.
If the market fails to reclaim $400 billion and reverses, key support levels at $330 billion and $317 billion should be monitored. A breakdown below $317 billion would invalidate the bullish setup, indicating a potential return to a downtrend.
Can Cardano Continue Its Impressive Price Climb?
In the past week, Cardano has risen 31%, regaining the crucial $1.11 level. In contrast, Bitcoin recently reached a new all-time high of $108,000, while Cardano's current price remains over 64% below its all-time high of $3.09 from September 2021.
With bullish scenarios indicating a potential rally in the altcoin market, Cardano and other altcoins may continue to see upward price momentum.
The altcoins market is at a crucial juncture. The recent breakout and formation of a higher low are promising signs, but uncertainty remains. A successful push above the $400 billion threshold is essential to confirm a bullish reversal and unlock further upside potential.
Featured image from DALL-E, chart from TradingView.com