As the cryptocurrency market experiences a notable revival, Bitcoin (BTC) continues to lead the charge, while altcoins – especially Cardano (ADA) – making big gains.
Altcoins Market on the verge of change: Will Bullish Momentum hold?
Market expert Patrick H recently shared insights on social media, saying, “The altcoins market is trying to build a new bullish structure. Are we heading for higher levels, or is another rejection more likely?”
This question that is shared among market players indicates the cautious optimism that is present in the altcoin realm as it considers the possibilities of a reversal of movement.
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On this matter, the expert appeared in one recently analysis that the daily chart of the total altcoin market cap (excluding the top 10 cryptocurrencies) shows significant developments.
After a long bearish phase characterized by a descending channel – marked by lower highs (LH) and lower lows (LL) – the market appears to be on the verge of a major move.
In addition, recent activity indicates a breakout from this descending channel, suggesting that a bearish trend may be declining. Importantly, a higher low (HL) has formed around the $330 billion mark, establishing a critical level level of supportserving as the first indication of a possible bullish trend in the direction of the market.
Currently, the altcoin market is facing the $375 billion level, where it is consolidating after the crash. For full confirmation of a bullish market structure trend, the market must achieve a clear higher high level (HH) at around $400 billion.
A successful break of this level would strengthen the reversal and could lead to a rally targeting $600 billion as the next local stop.
On the other hand, if the market fails — if it doesn't recover the $400 billion mark and bounce back — investors should keep a close eye on key support levels at $330 billion and $317 billion.
A retest of the descending channel could occur, and a breakdown below $317 billion would be invalid. bullish positionindicating a possible return to recession.
Can Cardano Continue With Its Impressive Price?
Over the past week, Cardano has emerged as a standout performer, with a significant price increase of 31%. This increase has allowed the ninth largest digital currency by market capitalization to regain the necessary level of $1.11.
In contrast, Bitcoin (BTC), the leading digital currency, achieved an all-time high of $108,000. Despite this, Cardano's current price still more than 64% below the all-time high of $3.09, reached in September 2021.
However, with the bullish conditions described by market expert Patrick H. indicating a possible rally in the altcoin market in the coming months, Cardano and other altcoins may continue to experience price increase.
Overall, the altcoins market is at an important stage. The recent breakout and formation of a higher low are promising signs, but the way forward remains uncertain.
A successful point above the $400 billion threshold necessary to confirm a bullish reversal and unlock further upside potential.
Featured image from DALL-E, chart from TradingView.com
