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While the cryptocurrency market is experiencing a remarkable resurgence, Bitcoin (BTC) continues to lead the way, while altcoins – especially Cardano (ADA) – making significant gains.
Altcoins market is on the cusp of change: will bullish momentum prevail?
Market expert Patrick H recently shared insights on social media, saying: “The altcoin market is trying to build a new bullish structure. Are we moving to higher levels, or is another rejection more likely?’
This question shared among market players signals the cautious optimism present in the altcoin realm as it considers the possibilities of a trend reversal.
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On this issue, the expert revealed in a recent one analysis that the daily chart of the total market capitalization of altcoins (excluding the top 10 cryptocurrencies) reveals important developments.
After enduring a prolonged bearish phase characterized by a descending channel – marked by lower highs (LH) and lower lows (LL) – the market appears to be on the verge of a significant shift.
Furthermore, recent activity signals a breakout from this descending channel, indicating that bearish momentum is waning. Importantly, a higher low has formed around $330 billion, reaching a critical point support levelwhich is the first indication of a possible bullish shift in the market trajectory.
Currently, the altcoin market is facing resistance at the $375 billion level where it is consolidating after the breakout. For full confirmation of a bullish market structure shift, the market would need to reach a significantly higher high (HH) of around $400 billion.
If this level is successfully broken, the reversal would be strengthened and could lead to a rally targeting $600 billion as the next local stop.
Conversely, if the market experiences a failed breakout – where the $400 billion mark is not reclaimed and then reversed – investors should keep a close eye on the key support levels of $330 billion and $317 billion.
There could be a retest of the falling channel breakout, and a breakdown below $317 billion would invalidate the outcome bullish stanceindicating a potential return to the downtrend.
Can Cardano continue its impressive price rise?
Over the past week, Cardano has become a standout performer, with a significant price increase of 31%. This rise has allowed the ninth cryptocurrency by market capitalization to regain the critical level of $1.11.
In stark contrast, Bitcoin (BTC), the leading cryptocurrency, recently hit a new all-time high of $108,000. Despite this, Cardano’s current price remains more than 64% below the all-time high of $3.09 reached in September 2021.
However, with market expert Patrick H.’s bullish scenarios pointing to a potential rally in the altcoin market in the coming months, Cardano and other altcoins may continue to experience upward price momentum.
Overall, the altcoin market is at a pivotal moment. The recent breakout and formation of a higher low are promising signs, but the path forward remains uncertain.
A successful push above the $400 billion threshold is essential to confirm a bullish reversal and unlock further upside potential.
Featured image of DALL-E, chart from TradingView.com
