- Altcoin market signals a breakout as RSI momentum and historical patterns align with bullish price action.
- Market structure mirrors 2020/2021 trends, reinforcing the potential for a sustained rally if resistance levels break.
- Total3 cap nears $700B, with technical indicators suggesting a climb toward $1.16T amid strengthening bullish momentum.
The altcoin market shows promising signs of a breakout, according to crypto analyst Moustache. The Total3 market capitalization, which excludes Bitcoin and Ethereum, recently exhibited a bullish falling wedge formation. Historically, this pattern indicates an impending upward move. Additionally, RSI momentum aligns with price action, reinforcing the potential for a surge.
Market Structure Indicates a Bullish Trend
The altcoin market has been consolidating, but recent technical indicators suggest a strong move ahead. The RSI broke out of a three-month falling wedge, a signal that price action could soon follow. Notably, the March and November 2024 highs were retested, reinforcing support levels. The current market capitalization of approximately $700 billion is poised to climb higher, potentially reaching $1.16 trillion.
Moreover, price action respects a critical support zone, marked in green on the charts. The previous breakout led to significant gains, and if history repeats, another surge could be imminent. RSI strength and historical patterns suggest a bullish continuation. If resistance breaks, the market could experience accelerated growth.
Comparing Current Conditions to the 2020/2021 Cycle
The overall crypto market cap is showing similarities to the 2020-2021 bull run. Moustache highlights that a falling wedge formation preceded a strong breakout during that period. The same pattern is unfolding in 2025, with price consolidating before pushing past resistance levels.
In 2020, the market broke down inside a wedge, finally breaking above resistance and building a long-term rally. The chart for 2025 is following the same structure, possibly in the same price action beforehand. The market has retested its breakdown area successfully, a precursor to further bullish buying.
Additionally, historical analysis indicates that similar conditions previously led to significant rallies. The ongoing market movements resemble past bullish trends, further reinforcing positive sentiment. With altcoins displaying technical strength, the market appears primed for another upward move.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
