- Altcoin market rebounds align with long-term trendline support since mid-2023.
- RSI breakout confirms momentum reversal after compression within a falling wedge.
- Weekly candles hold higher lows, preserving the bullish market structure in 2025.
The altcoin market, excluding Bitcoin and Ethereum, has maintained long-term trendline support through 2025. Technical indicators show a falling wedge breakout on RSI, aligning with a bounce off major support levels.
Rising Support and Momentum Compression
Recent price action in the altcoin sector has conformed to established trendline behavior dating back to mid-2023. The total market cap has consistently respected this ascending support, despite periodic corrections and weakening momentum indicators.
Source: Merlijn The Trader
According to the chart analysis above by Merlijn, the market has displayed repeated bounces along this trendline. In October 2023, January 2024, November 2024, and April 2025, his data shows four rebounds. Each bounce occurred after weekly price dips touched or slightly pierced the upward-sloping support.
Merlijn noted the market cap briefly dropped below $700 billion in April 2025 before recovering quickly. This mirrors behavior seen during prior rebounds when price tested support and then reversed upward. The TOTAL 3 price has preserved higher lows while forming a clear series of ascending troughs over nearly two years.
His findings also indicate that despite reaching a peak above $1 trillion in early 2025, the correction phase respected structural integrity. The pullback maintained contact with the trendline, affirming long-term strength. Merlijn emphasized the falling RSI trend during this phase, starting from above 70 in late 2024 and nearing 40 in April 2025.
Besides the price action, his assessment includes a technical breakdown of RSI movements. The indicator moved within a falling wedge from December 2024 to April 2025. It formed lower highs and lower lows, with RSI bouncing precisely near the wedge’s tip.
Breakout Confirmation and Structural Integrity
Moustache has presented a comparative analysis of previous RSI compression points and current market behavior. He confirmed that similar RSI patterns appeared during each historical trendline contact. He also charted the price channel forming between support and upper resistance.
Source: Moustache
Moustache’s analysis added that the RSI has now exited its falling wedge on the weekly chart. This wedge captured all RSI peaks and troughs since late 2024. He confirmed the market held its bullish channel structure since mid-2023 with no major breakdown.
The analyst noted that the candlestick patterns remained consistent with prior rebounds. Weekly candles closed above support and followed the pattern of rising lows. His interpretation shows aligned momentum and price reactions at each turning point.
