- Altcoin market cap approaches $1.05T neckline in a confirmed cup and handle chart pattern
- Breakout from $1.05T resistance could project altcoin market cap toward $1.74 trillion
- Altcoin handle correction bottomed near $780B before regaining upward price momentum
Altcoin market capitalization is hovering at a highly important resistance point, which has led to the formation of a well-known technical chart pattern. The identified structure takes the form of a cup and handle, and it may represent an indication of an upcoming positive trend in the market prices.
This trend depicts a fill-in bottom that has been developed in a couple of years, and the recently experienced consolidation stage that has developed the handle. In the technical analysis, many analysts tie this arrangement to the bullish continuation, particularly when the price challenges the level of the neckline at the resistance level. The neckline in this case is close to the 1.05 trillion level, which has been proven in the past.
The market is getting close to this resistance zone again, according to the recent movement in prices. When the price rises above it on a greater volume, market players can understand it as a sign of trend continuation. The handle, which fell to around $780 billion, is experiencing an upturn, and it also corresponds to past incidences of this configuration.
Potential Implications for Altcoin Season
Market indicators point to a rising interest in altcoins as their collective capitalization trends upward. A confirmed breakout from the current pattern could set the stage for what many refer to as “altseason,” where non-Bitcoin cryptocurrencies outperform.
Assuming the expected breakout achieves its goal, the target market cap of the altcoin would be in the area of $1.74 trillion. This measurement is placed on the beaten cup shape, which is added to the neckline breakout point. To confirm this projection, traders can look for the existence of sustained momentum and positive volume confirmation.
But in the event that the price is unable to sustain above the neckline, analysts could anticipate a price reversion in support regimes ranging between 850 billion to 780 billion dollars. These levels have in the past provided support on pullbacks, and they could play the role of cushioning in case of slack in momentum.
