- Altcoin market nears a breakout as Q2 begins, testing key support at $770B, with analysts eyeing a potential surge toward $1.2T.
- After months of correction, altcoins show signs of reversal, with historical trends suggesting a rally could erase recent losses.
- Market consolidation hints at a bullish move, with projections indicating a breakout could push valuations toward $1.5T in the coming months.
Since December 2024, the altcoin market has faced a tough correction phase. The total market cap, excluding Bitcoin and Ethereum, has remained within a descending channel. Despite attempts to break out, prices have struggled below key resistance levels. However, market analysts believe Q2 could mark a significant turnaround. The current chart patterns indicate a potential wedge breakout, suggesting that a strong bullish rally might be on the horizon.
Market Trends and Key Support Levels
With BTC and ETH excluded, the overall market capitalization of cryptocurrencies is at $772.8 billion, a daily decrease of 0.24%. Since October 2024, the market has continuously traded in a downward channel. Despite this, historical trends suggest that price action near the lower boundary often leads to recoveries.
A surge in late 2024 pushed valuations above $1 trillion. However, after hitting resistance, the market began a downward trajectory. A short-lived recovery in December reached $950 billion before sellers regained control. January 2025 witnessed further declines, dragging values below $800 billion. February’s brief bullish attempt was unsuccessful in breaking the channel’s upper resistance.
March 2025 has shown continued weakness, with prices now hovering around $770 billion. The market is testing the lower channel boundary, a crucial level for potential rebounds. A breakout above this range could trigger a strong rally, potentially reversing losses from the past five months.
Long-Term Projections and Market Structure
A broader market analysis covering 2021 to March 2025 points to major growth phases followed by sharp corrections. Early 2021 saw a peak at $1.1 trillion before a sharp correction plummeted values to below $600 billion. The drop carried into 2022, hitting lows of about $300 billion.
In 2023, the market entered a phase of stability, ranging from $300 billion to $400 billion. Valuations returned to over $600 billion later in 2023, marking a turning point. Late 2024 also experienced another strong rally, briefly hitting $1.1 trillion.
Now, the market is forming a triangle pattern, indicating consolidation at higher levels. If the breakout succeeds, projections are aimed at a run-up to $1.2 trillion by April 2025. Long-term trends also indicate more growth potential with projections moving toward $1.5 trillion in the coming months.
