With the cryptocurrency market witnessing a remarkable revival, Bitcoin (BTC) continues to spearhead the movement, while altcoins—particularly Cardano (ADA)—are achieving considerable gains.
Altcoins Market On The Brink Of Transformation: Will Bullish Energy Prevail?
Market analyst Patrick H recently provided perspectives on social platforms, declaring, “The altcoin market is working to establish a new bullish framework. Are we moving towards higher heights, or is another rejection more probable?”
This inquiry, circulating among market participants, illustrates the cautious optimism possessed within the altcoin sector as it evaluates the potential for a trend shift.
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Regarding this situation, the professional disclosed in a recent analysis that the daily chart for the total altcoin market cap (excluding the top 10 cryptocurrencies) indicates significant developments.
Having undergone an extended bearish period defined by a descending channel—characterized by lower highs (LH) and lower lows (LL)—the market seems poised for a meaningful transformation.
Furthermore, recent movements suggest a break from this descending channel, indicating that bearish pressure may be diminishing. Notably, a higher low (HL) has emerged around the $330 billion range, establishing a pivotal support level, which marks the initial sign of a potential bullish shift in the market’s direction.
At present, the altcoin market encounters resistance at the $375 billion mark, where it is consolidating after the breakout. To fully validate a bullish market structure change, the market needs to attain a clear higher high (HH) around $400 billion.
A successful breach of this level would cement the reversal and might lead to a surge aiming for $600 billion as the next local milestone.
In contrast, should the market undergo a failed breakout—failing to reclaim the $400 billion mark and subsequently reversing—investors ought to keep a close eye on crucial support levels at $330 billion and $317 billion.
A retest of the descending channel breakout could take place, and a drop below $317 billion would invalidate the bullish setup, indicating a potential return to the downtrend.
Can Cardano Sustain Its Remarkable Price Surge?
In the previous week, Cardano has distinguished itself as a top performer, recording a notable price increase of 31%. This rise has allowed the ninth-largest cryptocurrency by market capitalization to recover the critical $1.11 level.
In sharp contrast, Bitcoin (BTC), the dominant cryptocurrency, recently reached a new all-time peak of $108,000. Nevertheless, Cardano’s current price is still over 64% below its all-time high of $3.09, attained in September 2021.
However, with the favorable scenarios presented by market expert Patrick H. suggesting a potential rally in the altcoin market ahead, Cardano and other altcoins might continue to enjoy upward price momentum.
Overall, the altcoins market stands at a pivotal point. The recent breakout and establishment of a higher low are encouraging indicators, yet the journey ahead remains ambiguous.
An effective push above the $400 billion threshold is crucial to affirm a bullish reversal and unlock additional upside potential.
Image provided by DALL-E, chart from TradingView.com
