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The altcoin (TOTAL3) market cap is $568B. It is aiming to break above $916B.
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The historical patterns for 2020/2021 suggest that another parabolic movement is imminent.
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Analysts warn only geopolitical risks can delay the next rally.
Based on the TOTAL3 graph, the altcoin market is close to a major breakout. Analysts say that after a long period if consolidation, this phase is nearly over.
The current setup of the TOTAL3 Index looks very similar to the price action in the 2020/2021 bull market. This could indicate that another major rally is about to occur.
TOTAL3 tracks market capitalization of cryptocurrencies, but excludes Bitcoin and Ethereum. It is a key indicator for gauging the market’s interest towards altcoins.
Key Resistance Levels To Watch
It is currently at $845 billion. If it breaks above the resistance of $916 billion and closes the day above $1.08 trillion it could signal a full-blown alternative season.
A fall below $771 billion, on the other hand, would indicate a bearish turn, but the market has so far held its support.
The $916 billion mark is being retested and if altcoins break through with a strong pace, the total market capital could quickly jump to $1 trillion or beyond.
Related:Whale rush on XRP ADA, ONDO Altcoins : Massive Crypto Summit-Fueled Buying Spike Signals Huge Expectations
Mixed RSI and Stoch RSI Signals
The RSI on the 3-day chart, in terms of other technical indicators is below 60. This indicates a downward momentum. The trend line drawn above the peaks of RSI indicates that the downward momentum has slowed.
Source: MerlijnTrader
The Stoch RSI, which is near the bottom of the range, indicates that conditions are oversold. This is a sign that a reversal of the trend or a bounce are imminent.
Traders Await Confirmation Signals
While the broader RSI is still bearish in nature, a sustained rally will require breaking key resistance levels. Traders need to look for confirmation signals such as a price breakout or a change in RSI’s momentum.
Altcoins are now in the spotlight after Trump signed the executive order on March 7 creating the Strategic Bitcoin Reserve and a Crypto Asset Stockpile.
Related Top Altcoins Traders Are Watching Ahead Of White House Crypto Summit DOT, LINK LTC, HBAR & More
Many crypto whales prepare for the market movements that are coming up in the lead up to the summit.
As traders prepare for the next move of the market, they are closely monitoring TOTAL3. A strong close above the $1.08 trillion mark would be a clear indication that altcoins have entered price discovery mode, possibly triggering the biggest rally since 2020.
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