Will The Market Ascend To New Heights Or Hit A Roadblock?
As the cryptocurrency market recovers significantly, Bitcoin (BTC) continues to lead the way, while altcoins – especially Cardano (ADA) – Significant progress is being made.
The altcoin 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 establish a new bullish structure. Are we heading towards higher levels, or is another rejection more likely?”
This query shared by market participants shows the cautious optimism in the altcoin space as it considers the possibility of a trend reversal.
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In response to this issue, experts revealed at a recent press conference analyze The daily chart of total altcoin market capitalization (excluding the top ten cryptocurrencies) reveals important developments.
After a long 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 major turnaround.
Additionally, recent activity points to a breakout of this descending channel, suggesting bearish momentum may be waning. Importantly, a higher low (HL) has formed near the $330 billion mark, establishing a key support levelthe first sign that the market’s trajectory may be taking a bullish turn.
Currently, the altcoin market faces resistance at the $375 billion level and is consolidating at this level after breaking through. To fully confirm a bullish market structural shift, the market would have to reach a significantly higher high (HH) of approximately $400 billion.
A successful move above this level would solidify the reversal and could lead to a rebound targeting $600 billion as the next local stop.
Conversely, if the market fails to break out (fails to reclaim the $400 billion mark and subsequently reverses), investors should pay close attention to the key support levels of $330 billion and $317 billion.
A retest of the downward channel breakout is likely, with a fall below $317 billion Bullish setupindicating a possible return to the downward trend.
Can Cardano continue its impressive price climb?
Cardano has been a standout performer over the past week, with a massive 31% price increase. The surge has brought the ninth-largest cryptocurrency by market capitalization back to the key $1.11 level.
In stark contrast, leading cryptocurrency Bitcoin (BTC) recently hit an all-time high of $108,000. Nonetheless, Cardano’s current price It is still more than 64% below the all-time high of $3.09 set in September 2021.
However, the bullish scenario outlined by market expert Patrick H. suggests that the altcoin market may rebound in the coming months, and Cardano and other altcoins may continue to experience upward price momentum.
Overall, the altcoin market is at a critical juncture. The recent breakout and formation of higher lows are promising signs, but the path forward remains uncertain.
Successfully promoted $400 billion threshold Crucial for confirming a bullish reversal and unlocking further upside potential.
Featured images from DALL-E, charts from TradingView.com
