Total crypto market capitalization (TOTALCAP) has increased since it created a bullish reversal pattern inside a strong support zone.
Similarly, Altcoin market cap (ALTCAP) has broken above the descending resistance line.
TOTALCAP has risen since it created a double bottom pattern inside the $ 310 billion support zone throughout September. At the time of writing it has just moved above the 0.618 Fib level of the entire down move.
Since this is a very common pullback for a correction, a breakout above this could mean the current rally is a new up move rather than a correction.
The technical indicators are on the rise, as all three indicators: MACD, RSI and Stochastic RSI are all rising, the latter has given a bullish sign.
If the limit continues to rise, the nearest resistance zone will be found at $ 390 billion, which coincides with August’s high.
The short-term chart shows a break above the descending resistance line (dashed line) and a flip of the previous resistance zone into support. Although this is a development in an uptrend, the technical indicators are declining, showing weakness in the form of a bearish divergence in the RSI and MACD.
This shows that the price can drop back to the nearest support zone at $ 346 billion. If the price holds above, then the possibility of further upside is very high.
The long term resistance of TOTALCAP
Trader AltcoinSherpa has outlined a chart of total market cap and predicted a rally in December.
The weekly chart also shows a flip of previous resistance into support.
Further, if the limit continues to rise, the next levels of resistance will be $ 425 and $ 617 billion, respectively.
Altcoin market cap
ALTCAP has similar price action to TOTALCAP, but it broke above the descending resistance line.
However, it is struggling to climb above the $ 144 billion zone, which is acting as resistance. A successful breakout is likely to result in a capitalization of $ 162 billion.
However, a fall to retest the previous resistance line and the $ 130 billion support zone before rising up appears to be the most likely scenario.
Dislaimer: This article is for information purposes only, not investment advice. We are not responsible for your investment decisions.