- Current trends in the Total Cryptocurrency Market Cap (TOTAL) chart, particularly an ascending triangle, suggest that a major bullish trend is on the horizon.
- This sentiment is reflected in the Total 3 chart, which analysts also see as poised for a rally.
From January to March, the total market capitalization of cryptocurrencies increased by approximately 81.36%, reaching $2.721 trillion. However, this figure has since declined by 30.41%.
With the emergence of a bullish pattern, the cryptocurrency market is setting the stage for what could be the start of a substantial bull run.
An ascending triangle can lead to a rally, but on one condition
An ascending triangle is a technical trading pattern characterized by two converging diagonal lines meeting at a point, and is often a precursor to potential rallies in financial markets.
This pattern forms when price oscillates between a horizontal resistance line and an ascending support line, suggesting consolidation before a possible breakout.
In a bullish scenario, usually indicated by an ascending triangle, price could possibly break higher with a strong tendency to reach its previous higher peak or push further into new territory.
This was observed with the TOTAL chart, which has been consistently moving in similar patterns since 2020. At press time, TOTAL was at a critical point with a support level of 1.928.
If this level holds, it could provide the buying pressure needed for the cryptocurrency market to reach new highs.
Additionally, another key support level exists at 1.661, which could become relevant if the 1.928 level fails to hold.
This lower level is important because it aligns with the bottom of the ascending channel, an area that has historically catalyzed upward moves in the market.
Source: Trading View
If this buying pressure is sustained at 1.661, it could propel the total cryptocurrency market cap to its yearly high of $3.009 trillion or potentially higher.
Conversely, if none of these support levels hold, the market could enter a downturn, which could lead to a decline in market capitalization to $1.475 trillion or even $1.195 trillion.
Such a scenario would lead to significant losses for Bitcoin and other cryptocurrencies and worsen market sentiment.
Optimism is on the rise
According to a crypto analyst known as Moustache, altcoins are set for a major surge.
He observed that altcoins are already reacting positively, and this is reinforced by two major technical signals that hint at a bullish trend.
mustache highlighted on Altcoins market cap chart showing that prices recently surged out of a nine-month falling wedge pattern, marking the first indicator of an imminent rally.
Source: X
The bullish momentum is reinforced by the formation of an inverse head and shoulders pattern, a pattern traditionally considered a strong indicator of an upward price movement.
Such a significant breakout suggests that altcoins are poised to appreciate, entering a phase commonly referred to as “altseason,” a period marked by substantial gains in alternative cryptocurrencies.
Discussing the potential duration of this bullish phase, Moustache commented:
“I think we have some good weeks/months ahead of us.”
AMBCrypto found Solana (SOL) to be one of the cryptocurrencies likely to benefit significantly from this rally.
Solana May Lead the Next Wave of Cryptocurrencies
Solana has shown remarkable resilience in the volatile cryptocurrency market.
Despite a 15.42% drop over the current month, indicating reduced interest, Solana has maintained its bullish momentum with an impressive 566.98% increase over the past year.
This month’s decline appears to be influenced by broader negative market trends, but Solana managed to avoid further losses.
Read Solana (SOL) Price Prediction 2024-2025
Its performance over the daily and weekly periods remains relatively stable, with a slight decrease of 0.26% and a gain of 0.32% respectively.
If the long-awaited alt season begins, Solana is poised for a significant surge. It is expected to break out of its current consolidation phase and potentially surpass its all-time high of $259.90, setting new records.
