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As the cryptocurrency market experiences a notable recovery, Bitcoin (BTC) continues to lead the way, while altcoins – especially… Cardano (ADA) – They make big gains.
The altcoin market is on the cusp of change: will bullish momentum prevail?
Market expert Patrick H. recently shared his insights on social media, saying: “The altcoin market is trying to build a new bullish structure. Are we headed to higher levels, or is another rejection more likely?”
This common query among market players points to the subtle optimism present in the altcoin world as it contemplates the possibilities of a trend reversal.
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In this regard, the expert recently revealed analysis The daily chart of the total altcoin market capitalization (excluding the top 10 cryptocurrencies) reveals important developments.
After enduring a long bearish phase characterized by a falling channel – marked by lower highs (LH) and lower lows (LL) – the market appears to be on the verge of a major turnaround.
Additionally, recent activity indicates a breakout of this descending channel, indicating that downward momentum may be waning. Importantly, the High Low (HL) has formed around the $330 billion mark, forming a critical area Support levelserves as the first signal of a possible upward shift in the market’s trajectory.
Currently, the altcoin market is facing resistance at the $375 billion level, where it is consolidating after the breakout. To get full confirmation of the upward shift in market structure, the market would have to make a clear High High (HH) of around $400B.
A successful break of this level would promote a reversal and could lead to a rally targeting $600 billion as the next domestic stop.
Conversely, if the market experiences a failed breakout — one that fails to reclaim the $400 billion mark and later reverses — investors should closely monitor key support levels at $330 billion and $317 billion.
It is possible that the breakout of the descending channel will be retested, and a collapse below $317 billion would invalidate this breakout. Bullish setupWhich indicates a possible return to the downtrend.
Can Cardano continue its amazing price rise?
Over the past week, Cardano has emerged as a standout performer, seeing a significant price increase of 31%. This increase enabled the ninth largest cryptocurrency by market capitalization to regain the critical level of $1.11.
In stark contrast, Bitcoin (BTC), the leading cryptocurrency, recently achieved a new all-time high of $108,000. Despite this, Cardano Current price It remains 64% below its all-time high of $3.09, which was reached in September 2021.
However, with bullish scenarios outlined by market expert Patrick H. indicating a potential rise in the altcoin market in the coming months, Cardano and other altcoins may continue to experience upward price momentum.
Everywhere, the altcoin market is at a critical juncture. The recent breakout and formation of a higher low are promising signs, but the way forward remains uncertain.
Successful push up Threshold of $400 billion Necessary to confirm a bullish reversal and unlock further upside potential.
Featured image of DALL-E, chart from TradingView.com
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