- Altcoin market cap nears a key ascending trendline, forming a triple-bottom that historically triggers strong bullish rebounds.
- Price action respects a 1.5-year-long ascending channel with repeated bounces from its lower boundary signaling structural strength.
- Weekly RSI forms a falling wedge near oversold levels, historically signaling bullish momentum and reduced selling pressure.
Altcoins are approaching a pivotal moment as the total crypto market cap (excluding Bitcoin and Ethereum) nears a crucial trendline. This ascending trendline has acted as a strong support level for the past 1.5 years. Currently, the market sits around $741 billion and shows signs of another potential bounce.
The setup mirrors previous rebounds from this level in 2023 and 2024. This zone has triggered rallies each time the market touched it. Hence, market analysts are closely watching this area for a major recovery. Moreover, the formation of a triple-bottom pattern adds weight to a bullish outlook.
Market Structure Remains Strong Within Long-Term Channel
The broader chart structure remains intact within a long-term ascending channel. This channel consists of two upward-sloping parallel trendlines. Each touch of the lower trendline has led to market rebounds over the past year and a half. In 2023, the market bounced from this area and moved higher. Again, in early and late 2024, it repeated this pattern. Consequently, a consistent structure is forming, suggesting continued respect for this key support zone.
By early 2025, the market revisited this support once more. It reacted similarly, hinting at another possible reversal. Besides, the triple-touch formation on the trendline strengthens the possibility of a new rally. If the projection holds, the market could rise toward $1.75 trillion. This would align with the upper boundary of the channel.
RSI Falling Wedge Signals Reduced Bearish Pressure
Additionally, the Relative Strength Index (RSI) offers a supportive signal. The RSI is forming a falling wedge on the weekly chart. This pattern typically precedes bullish breakouts. Moreover, the RSI is hovering around 36.7, nearing oversold territory. This level has triggered rebounds in the past. Hence, momentum appears to be shifting in favor of bulls.
The falling wedge forms within a broader RSI uptrend that started in late 2023. Consequently, this pattern adds confidence to the current setup. Significantly, each key technical element points toward a high-probability bullish move.
