- Altcoins broke out from a six-month downtrend, suggesting a potential shift to a bullish market trend.
- The altcoin market capitalization hit $588.78 billion, with $654.7 billion as a key resistance level.
- RSI indicates market indecision, as the altcoin market shows a weak bullish momentum with potential consolidation risks.
Crypto analyst el_crypto_prof shared insights on the current state of altcoins, emphasizing resilience during recent dips. He noted that the market has seen a breakout from a six-month downtrend, suggesting a shift in momentum.
According to him, dips are natural in this cycle, and the current market conditions offer opportunities to accumulate altcoins. Despite volatility, the analyst believes altcoins are in a broader bull market phase.
Breakout from the Trendline After Six-Month Decline
The altcoin market experienced a breakout after six months of struggling under a downward-sloping trendline. The candlestick chart, which uses 3-day intervals, showed this breakout with a notable upward movement.
Green candles represented positive growth, while red candles showed slight pullbacks. The breakout is marked by a yellow circle, indicating a crucial moment where the altcoin market surpassed its resistance level. However, the market remains cautious as the red candle within the breakout suggests a brief pullback or market hesitation.
Market Capitalization and Key Price Levels
The total market capitalization of altcoins currently stands at $588.78 billion. The recent high of $654.7 billion highlights the volatility surrounding the breakout. While altcoins managed to cross the key resistance level of the downtrend line, there is a possibility of further upward movement if buying momentum sustains. The previous trendline now acts as support, preventing a return to bearish trends. However, if the price drops below the $560-580 billion range, it could indicate a failed breakout.
Relative Strength Index Signals Market Indecision
The Relative Strength Index (RSI) offers insight into market momentum, hovering around 50. This reflects indecision, with neither bulls nor bears gaining firm control. Notably, a bearish momentum in the RSI is visible, as the market cap made higher highs while the RSI trended lower. This suggests that despite the breakout, momentum remains weak, hinting at a potential pullback or consolidation.
The post Altcoins Breakout After 6-Month Downtrend, Analyst Sees Bull Market with Opportunities appeared first on Crypto News Land.