- Altcoins test $250B resistance; a strong close above may trigger a rally to $ 315 B.
- Historical trends suggest that past failed breakouts increase the chances of a successful retest.
- Market structure mirrors past bullish cycles, signaling potential for sustained growth.
Altcoin market capitalization, excluding Bitcoin and Ethereum, nears key resistance. Historical trends show that accumulation often precedes significant upward movements.
Resistance Levels and Breakout Potential
According to market analyst Rekt Capital, altcoins are testing the $250 billion resistance level, marked by a blue circle. Observing price trends, the analysis indicates that a strong weekly close above this level could trigger a rally toward $315 billion.
Source: Rekt Capital
This level, highlighted with a red circle, serves as the next resistance point. Tracking market movement, Rekt Capital notes that surpassing this threshold would confirm the end of the ongoing 55% correction. Prior corrections of 69% and 85% suggest that the market may be in a stronger recovery phase.
Additionally, Rekt Capital highlights the $425 billion resistance level, which has weakened as a rejection point. Based on price action, previous failed breakouts suggest an increasing probability of a successful retest. Maintaining momentum above $250 billion could mark the beginning of a long-term bullish trend.
Market Cycles and Future Projections
Based on historical trends, Rekt Capital analyzes altcoin price action to forecast potential market directions. Historical highs are at solid levels of resistance, followed by long corrections. Altcoins' market valuation reached a peak of $425 billion in 2021 before plummeting. A critical support level was established when the market value dropped to $142.86 billion due to the crash.
After months of accumulation, the market rebounded to $315 billion before undergoing another retracement. Market analyst Niels provides additional insights into the current market cycle. Comparing past altcoin phases, Niels identifies a mid-cycle consolidation, mirroring previous trends.
Source: Niels
The chart displays a symmetrical triangle pattern, indicating accumulation before expansion. If historical patterns persist, a breakout above $250 billion could push prices toward previous highs. Niels also highlights that a strong weekly close above this level would confirm bullish momentum, with an initial target of $315 billion and further upside potential if resistance weakens.
Market Structure and Price Trajectory
Tracking historical patterns, another analyst, Niels, notes that past corrections have led to extended accumulation before major surges. A symmetrical triangle formation has consistently preceded significant price increases, supporting the likelihood of a breakout.
The technical structure indicates that sustaining support above $250 billion could improve the chances of revisiting higher resistance levels. Additionally, Niels monitors historical market behavior, noting that current conditions align with previous bullish phases, reinforcing potential growth.
With historical trends aligning and resistance levels showing signs of weakening, the altcoin market is approaching a decisive phase. The next price movements will determine whether the breakout sustains momentum or faces renewed resistance.