Altcoins: The Calm Before the Storm? Market Analysis and Predictions

Most crypto assets are subdued on Wednesday. The crypto market could be waiting for a price explosion, and it could happen as early as this week or next.

Major Breakout on the Horizon for Total3

Source: TradingView

Total3 represents the market cap of all cryptocurrencies excluding $BTC and $ETH, making it a useful indicator of the overall altcoin market performance. 

The chart reveals that Total3 has emerged from a triangular pattern and is poised to confirm above its initial resistance level of $1.05 trillion. This resistance traces back to the peak weekly candles during the 2021 bull market. Another key resistance level lies at $1.13 trillion, pulled from the pinnacle of the 2021 bull market and reinforced by three recent touches in the price action. Clearing this second resistance with a weekly candle opening above it could signal the commencement of the next upward phase.

Bitcoin Dominance Holds Steady

Source: TradingView

Meanwhile, the Bitcoin Dominance chart (BTC.D) suggests that dominance has not yet broken down. Despite having two candle bodies closing below the trendline of the channel, Bitcoin's dominance has managed to re-enter the channel and is now attempting to confirm above a descending trendline from the channel top. Altcoin enthusiasts should monitor this closely.

Is USDT Dominance Forming an Inverse Cup and Handle?

Source: TradingView

The chart for USDT Dominance (USDT.D) is showing an inverse cup and handle formation, which typically predicts a breakdown. If it confirms, it would suggest strengthening across the crypto market as a whole. However, confirmation of this pattern is still awaited.

$SOL Leads the Pack Among Altcoins

Source: TradingView

Lastly, $SOL appears to be ahead of other major altcoins, potentially spearheading the next rally. Recently, $SOL achieved a historic high of $295, spurred by bullish sentiment. The chart depicts significant volatility in the past two weeks, marked by long wicks in both directions. 

Ignoring these wicks, the current week's candle body opened above the crucial $252 level. Should it close above this level, it may establish a new support for the bull market. The following significant target is $415, as indicated by the 1.618 Fibonacci level.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.