Are altcoins gearing up for a major rally? 3 factors to consider
The post Are altcoins gearing up for a major rally? 3 factors to consider appeared on BitcoinEthereumNews.com.
One market analyst highlighted three pivotal factors contributing to the potential rally. Most notably, the USDT Treasury has minted 1 billion USDT during this crucial period, signaling a ripe opportunity for market growth. The broader crypto market, however, has witnessed a recent slowdown, recording a 2.87% decline in the past 24 hours that brought its total capitalization down to $2.04 trillion. Altcoins have borne the brunt of this downturn. Despite the intensified selling pressure and a modest increase in Bitcoin’s [BTC] market dominance—up 0.28% within the same timeframe—analysts remained optimistic about the altcoin market’s swift recovery in the near future. Potential altcoin rally? Crypto analyst Moustache predicted a forthcoming rally in the altcoin market, driven by several key technical alignments. According to his analysis, multiple factors are converging that traditionally herald substantial price movements. The primary indicator is the emergence of inverse head and shoulder patterns within a descending channel. This pattern, characterized by price fluctuations between two diagonal lines—known as resistance and support—often precedes a strong breakout. Such a breakout typically propels prices to the channel’s upper limit or beyond, signaling a bullish reversal. Source: X Adding to the bullish outlook is a golden cross observed in the Moving Average Convergence Divergence (MACD) identified in the yellow circle. This occurs when the MACD’s blue line decisively crosses above the orange signal line, a phenomenon noted within a three-month descending triangle in recent trading periods. Historically, this crossover is a strong indicator of rising momentum. These technical confluences—head and shoulders pattern, MACD crossover, and channel dynamics—collectively improve the probability of a significant rally. The ultimate confirmation of an upward trend will be marked by breakouts both from the descending channel and in the MACD, pushing the price into a bullish zone. Increased liquidity inflow adds optimism to the market The…
Filed under: News - @ September 17, 2024 12:24 am