As per a recent analysis by Rekt Capital on X, the altcoin market is currently undergoing a retest of historical levels. This retesting phase has historically been a precursor to significant growth in the altcoin market.
Additionally, a user named Will on X highlighted a noteworthy development, indicating a 3.5% increase in the circulation of stablecoins over the past 90 days. This rise in stablecoin supply could potentially influence the dynamics of the altcoin market, suggesting a possible breakout.
Altcoin Market Retesting Historic Levels Amidst Potential Breakout
Renowned analyst and trader Rekt Capital recently shared insights on X, indicating that the altcoin market is undergoing continuous retesting of historic levels. According to the post, these retested levels have historically foreshadowed significant growth in the altcoin market.
Altcoin Market Cap continues to perform historic retests
First the green circled retest a few weeks ago
And now this yellow circle retest this week
Historically, both of these retests preceded fantastic growth in the Altcoin Market#BTC #Crypto #Bitcoin pic.twitter.com/uI6G6Issxl
— Rekt Capital (@rektcapital) December 16, 2023
A potential breakout in the altcoin market is suggested, coinciding with a notable increase in the circulation of stablecoins, up by 3.5% over the last 90 days. In a recent X post, user Will highlighted this rise in stablecoin circulation, particularly noteworthy as the 90-day stablecoin supply turned positive for the first time in 1.5 years on November 11, 2022.
Stablecoins in circulation are now up 3.5% over the last 90 days https://t.co/Dc0TO9uEu8 pic.twitter.com/FKC46oPS78
— Will (@WClementeIII) December 16, 2023
Altcoin Market Cap (TOTAL2): Symmetrical Triangle Points to Potential Breakout
The daily chart for the altcoin market cap (TOTAL2) reveals the formation of a symmetrical triangle from a technical standpoint, indicating the possibility of an upcoming breakout. In the event of a bullish move, the altcoin market cap aims to overcome the resistance level at $747.988 billion, subsequently turning it into a supportive level.
Such a positive development could propel the altcoin market, pushing its valuation to reach heights of up to $874.278 billion within the next week.
Conversely, a negative breakout scenario would prompt a retest of the $684.566 billion support level within the next 72 hours. If sustained selling pressure persists at this support level, it may lead to a further decline in the market, potentially reaching as low as $621.085 billion.
Altcoin Market Cap (TOTAL2): Potential Short-Term Correction
Technical analysis of the daily chart for the altcoin market cap (TOTAL2) suggests the possibility of a temporary correction within the next 48 hours. Key indicators, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), indicate a decline in buying power over the recent days.
The MACD line’s position below the MACD Signal line signals a shift toward a bearish trend for TOTAL2. Additionally, the RSI line breaking below the RSI Simple Moving Average (SMA) line suggests increasing strength among sellers, indicating a bearish sentiment and a potential advantage for bears over bulls in the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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