As the altcoin market cap nears $1.27 trillion, investors brace for potential shifts. The market may either break through this resistance or face a pullback.
Current Market Situation
Currently, the market cap stands at approximately $1.21 trillion, indicating a recent decrease of 1.65%. Despite previous significant gains, the market has yet to reach new all-time highs in this cycle, partly due to Ethereum's relative weakness.
Market Structure and Resistance Battle
Previously, the altcoin market rose to around $1.71 trillion, forming a head-and-shoulders pattern, a bearish signal of potential trend reversals. The left shoulder formed as the market faced resistance at $1.27 trillion followed by a dip. The head formed as prices broke past $1.5 trillion, peaking at $1.71 trillion, but was followed by a sharp decline below the critical $1.27 trillion level.
Key Support and Outlook
The market recently found support near $1 trillion, forming a rounded bottom structure suggesting accumulation. If the market can maintain above $1.27 trillion, an upward move toward $1.5 trillion is possible. However, if resistance prevails, prolonged consolidation or another decline may occur.
In the near term, the altcoin market's direction hinges on the battle for the $1.27 trillion level. A break above this resistance could confirm an extended rally, while rejection might lead to a retest of lower support levels near $1 trillion.
