Recent changes in the altcoin market are garnering attention from analysts who note the breakout of the TOTAL2 chart, which may signal a possible rally.
TOTAL2 Chart Breaks Out From Cup and Handle Formation
The TOTAL2 chart, which measures the crypto market cap excluding Bitcoin and Ethereum, has formed a Cup and Handle pattern. This technical formation began developing in mid-2022, with the rounded part of the cup forming over a year. In early 2025, while the handle was forming, it became a falling wedge, another technical pattern often preceding upward price moves after a brief downtrend. Following the breakout, the chart shows a retest of a symmetrical triangle resistance, now turned into support.
Altcoin Market Cap Repeats 32-Week Consolidation Cycle
Data from the current cycle indicates that the TOTAL2 market cap has moved sideways for 32 weeks. This consolidation period mirrors a similar 32-bar (224-day) stretch observed in 2024. During that earlier phase, the altcoin market also stayed within a tight range before a sharp upward move. Consequently, this repetitive pattern suggests familiar altseason patterns may be unfolding.
Technical Setup Aligns With Market Rebound
Following the symmetrical triangle breakout and retest, most altcoins are recovering after early 2025 sell-offs. The current TOTAL2 chart shows the market cap around $1.4 trillion, recovering from lows of under $900 billion earlier this year. The rebound off triangle support back to a higher range level could facilitate capital rotation back into altcoins.
The analysis of the current technical conditions in the altcoin market suggests a potential resurgence reminiscent of last year's rally. The coming weeks may prove critical for investors and traders.
