TOTAL3 Surge: Catalyst for Explosive Altcoin Boom in the Near Term
TOTAL3 has broken above the final horizontal resistance zone and confirmed it as support. It is expected to rise strongly in the near future.
TOTAL3 represents the market capitalization of cryptocurrencies excluding Bitcoin and Ethereum.
TOTAL3 broke above a long-term symmetrical triangle in the week from October 30 to November 5, indicating that the bulls have regained control, and it may have started a new uptrend.
Indeed, TOTAL3 has surged since then and broke above the horizontal resistance at $445 billion in the week from December 4 to 10. This is the final horizontal resistance zone to confirm that the long-term trend has turned bullish.
Last week, the bulls successfully flipped this resistance area into support (green arrow) and are currently in the process of forming another bullish pinbar candle.
The weekly RSI supports further uptrend as it surges into the overbought zone and is sloping upward.
Therefore, TOTAL3 may continue to rise to the next significant resistance at $630 billion, formed by the previous support area and the 0.618 Fibonacci retracement level. This figure corresponds to a 34.30% increase from the current price level.
The daily chart shows that TOTAL3 has formed a bearish divergence when reaching a peak at $476 billion on December 14 (red line), suggesting a correction might occur.
However, instead of a sharp decline, TOTAL3 flipped the previous horizontal resistance at $435 billion into support and formed a hidden bullish divergence (green line), marking the continuation of the previous uptrend.
Therefore, TOTAL3 is likely to rise in the coming days and may invalidate the previously observed bearish divergence.
The short-term target is found at $508.54 billion, formed by the 1.618 Fib of the recent decline.
The most likely scenario suggests that TOTAL3 will continue to rise in the near future. The nearest target is $508.54 billion, with further potential to reach $630 billion.
Reaching $630 billion would mark a further explosion of many altcoins.
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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