As the cryptocurrency market experiences a notable resurgence, Bitcoin (BTC) continues to lead the charge, while altcoins—especially Cardano (ADA)—are making significant gains.
Altcoins Market On The Cusp Of Change: Will Bullish Momentum Prevail?
Market expert Patrick H recently shared insights on social media, stating, “The altcoins market is attempting to build a new bullish structure. Are we heading for higher levels, or is another rejection more likely?”
This query shared among market players signifies the careful optimism present in the altcoin realm as it contemplates the possibilities of a trend reversal.
On this matter, the expert unveiled in a recent analysis that the daily chart of the total altcoin market cap (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.
In addition, recent activity indicates a breakout from this descending channel, suggesting that bearish momentum may be waning. Importantly, a higher low (HL) has formed around the $330 billion mark, establishing a critical support level, serving as the first indication of a possible bullish shift in the market’s trajectory.
Currently, the altcoin market is facing resistance at the $375 billion level, where it is consolidating following the breakout. For a full confirmation of a bullish market structure shift, the market must achieve a clear higher high (HH) at approximately $400 billion.
Successfully breaking 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 key support levels at $330 billion and $317 billion.
A retest of the descending channel breakout could occur, and a breakdown below $317 billion would invalidate the bullish setup, signaling a potential return to the downtrend.
Can Cardano Continue Its Impressive Price Climb?
Over the past week, Cardano has emerged as a standout performer, experiencing a substantial price increase of 31%. This surge has enabled the ninth-largest cryptocurrency by market capitalization to regain the critical $1.11 level.
In stark contrast, Bitcoin (BTC), the leading cryptocurrency, recently achieved a new all-time high of $108,000. Despite this, Cardano’s current price remains over 64% below its all-time high of $3.09, which was reached in September 2021.
However, with the bullish scenarios outlined by market expert Patrick H. indicating a potential rally in the altcoin market in the coming months, Cardano and other altcoins may continue to experience upward price momentum.
All around, the altcoins market stands at a crucial juncture. The recent breakout and formation of a higher low are promising signs, yet 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 from DALL-E, chart from TradingView.com
