As the cryptocurrency market experiences a significant resurgence, Bitcoin (BTC) continues to lead the charge, while altcoins – especially Cardano (ADA) – are making significant gains.
Altcoins on the Verge of a Market Turnaround: Will Bullish Momentum Prevail?
Market expert Patrick H shared insight on social media recently, stating, “The altcoins market is trying to form a new bullish structure. Are we headed for higher levels, or will there be another rejection.” is more likely?”
This query shared among market players reflects the cautious optimism that exists in the altcoin sector as it considers the possibilities of a trend reversal.
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On this matter, the expert recently disclosed analysis That the daily chart of the total altcoin market cap (excluding the top 10 cryptocurrencies) shows significant growth.
After enduring a prolonged bearish phase characterized by a descending channel—marked by the lower high (LH) and lower low (LL)—the market appears to be on the verge of a significant reversal.
Furthermore, recent activity indicates a breakout from this descending channel, suggesting bearish momentum is waning. Significantly, a high low (HL) has formed around the $330 billion mark, establishing a significant Support levelserving as the first indication of a potential bullish change in market behavior.
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 change, the market should achieve a clear high high (HH) at around $400 billion.
A successful break of this level would solidify the reversal and could lead to a rally targeting $600 billion as the next local stop.
Conversely, if the market experiences a failed breakout – failing to reclaim the $400 billion mark and subsequently reversing – investors should closely monitor the key support levels of $330 billion and $317 billion.
There could be a retest of the breakout of the descending channel, and a break below $317 billion Fast setupIndicates a possible reversal of a downtrend.
Can Cardano continue its impressive price climb?
Over the past week, Cardano has emerged as a standout performer, experiencing a significant price increase of 31%. This increase has enabled the ninth-largest 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 64% below its all-time high of $3.09, reached in September 2021.
However, Cardano and other altcoins may continue to experience upward price momentum, with market experts pointing to a potential rally in the altcoin market in the coming months with bullish scenarios outlined by Patrick H.
All around, the altcoins market stands at an important turning point. Recent breakouts and formation of higher lows are promising signs, yet the path forward is uncertain.
A successful push over $400 billion threshold A bullish reversal is essential to confirm and unlock further upside potential.
Featured image from DALL-E, chart from TradingView.com
