A shift in technical indicators has prompted predictions of an imminent altcoin rally, with one X analyst forecasting gains as steep as those posted in 2017 and 2021.
This technical indicator just turned green
Taking X, the analyst saying This optimism follows a change in the Gaussian channel, a technical indicator used to assess market momentum. At X, the trader observes that the Gaussian channel, after weeks, turned from red to green.
Reading historical performance and changes in indicators suggests that there could be a bullish turn for major altcoins like ethereum, Solana, and even Dogecoin in the coming days.
However, from a technical point of view, this rally would be best confirmed once a complete break above the immediate resistance occurs. If this happens, the altcoin market could have a “parabolic” rally.
The overall crypto market is bullish, driven by bitcoin's encouraging rally. The world's most valuable currency is trading above $50,000, trending towards December 2021 levels. Supporters are optimistic that bitcoin will not only post further gains in the coming days, but will likely float past the highs. November 2021.
This increase in demand is due to institutions and investors taking advantage of spot bitcoin exchange-traded funds (ETFs) to hold bitcoin.
Rising bitcoin prices have greatly benefited coins like Solana and ethereum and meme coins like BONK, which continue to trend. As an example, SOL is now trading above $100 despite a recent network outage that called the platform's reliability into question. In January, SOL reached a high of over $125.
On the other hand, ethereum continues to rise but remains below $3,000. Growing decentralized finance (DeFi) activity and optimism from the U.S. Securities and Exchange Commission (SEC) approving a spot ethereum exchange-traded fund (ETF) continue to drive demand. Recently, Franklin Templeton petitioned the regulator for a spot on the ethereum ETF, joining BlackRock and Fidelity.
Altcoin Market Cap Nears $1 Trillion
It is unclear how strongly altcoins will rally if buyers take control. Judging by the performance of major altcoins like Solana and Cardano in the first quarter of 2024, prices are likely to shoot up to record new highs in 2024, surpassing the resistance levels of 2023.
Based on CoinMarketCap data, the market capitalization of altcoins has almost doubled. It has risen from around $475 billion at the end of 2022 to more than $910 billion when it was written in mid-February. When altcoins peaked in November 2021, their cumulative market capitalization exceeded $1.6 trillion.
Featured image of DALLE, TradingView chart
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