TOTAL3 Strengthens: Altcoins Poised for Continued Surge
TOTAL3 has confirmed the previously significant horizontal resistance zone as support. It is expected to continue rising in the near future.
TOTAL3 represents the total market capitalization of cryptocurrencies excluding Bitcoin and Ethereum.
TOTAL3 broke decisively above the horizontal resistance zone of $445 billion during the week from December 18 to 24, 2023. As this is the horizontal resistance area that created the lowest low, breaking above it will confirm the end of the previous long-term downtrend.
Indeed, the price has confirmed this zone as support last week (green arrows) and is currently in the recovery process.
The weekly RSI (Relative Strength Index) has entered the overbought zone, but it hasn’t produced any bearish divergence. This indicates that the bulls are still in control of the market.
Therefore, TOTAL3 may continue to rise towards the next significant resistance zone at $630 billion, formed by the previous support zone and the 0.618 Fibonacci retracement level. This figure corresponds to a 27.79% increase from the current price.
The daily chart shows that the price bounced off the $445 billion level on January 3rd and January 8th, 2024 (2 blue arrows). Both instances created long wicks below, a sign of buying pressure.
The daily RSI bounced up from the 50 levels and formed a hidden bullish divergence. Both are bullish signals, often leading to a continuation of the uptrend.
Therefore, the daily chart supports the bullish outlook from the weekly timeframe.
The most likely scenario suggests that TOTAL3 will continue to rise in the near future. The potential target for this movement is $630 billion. Reaching this level will mark a further explosion for many altcoins.
The bullish outlook would be invalidated if TOTAL3 breaks down below the $445 billion zone.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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