The altcoin market approaches a pivotal moment as the total market cap (excluding Bitcoin and Ethereum) nears a crucial trendline support.
Key Support in the Crypto Market
Currently, the total crypto market cap sits around $741 billion. This trendline has served as a strong support for the past 1.5 years. Analysts anticipate another potential bounce from this zone, similar to what occurred in 2023 and 2024. The formation of a triple-bottom pattern adds weight to a bullish outlook.
Market Structure Remains Strong Within Long-Term Channel
The broader chart structure remains intact within a long-term ascending channel consisting of two upward-sloping parallel trendlines. Each touch of the lower trendline has led to market rebounds over the past year and a half. Recent market reactions at this support hint at the possibility of a new uptrend if the pattern holds.
RSI Indicator Signals Reduced Bearish Pressure
The Relative Strength Index (RSI) is forming a falling wedge on the weekly chart, typically signaling bullish breakouts. At present, the RSI is around 36.7, nearing oversold territory. This supports the notion that momentum appears to be shifting in favor of bulls.
The existing technical indicators suggest a high probability of a bullish move in the market. With continued monitoring of the support trendline, analysts are focused on the potential recovery of assets in the near future.
