Altcoins teetering on the edge - can they bounce back?

Many altcoin investors might have already sold their holdings, or they are dismissing their altcoins as a learning experience. Currently, the altcoin market cap is precariously close to a steep drop. Will the slight upturn persist, or are we headed for a plunge over the precipice?

Total3 makes a move

Source: TradingView

Are we witnessing the beginning of a recovery, or is this another false start that will further frustrate altcoin enthusiasts? On the Total3 chart, representing the market cap of all cryptocurrencies excluding $BTC and $ETH, a breakout has occurred. The short-term goals are $900 billion at the 0.5 Fibonacci level, then $935 billion at the 0.618 Fibonacci, and ultimately surpassing the downward trendline and reclaiming the $1 billion resistance.

Ongoing institutional interest in $ETH

Source: TradingView

Although $ETH isn't included in the Total3 chart, its significant market cap makes it crucial to consider alongside other altcoins. Recently, $ETH dipped to a key horizontal resistance level at $2,150, situated just above the lowest Fibonacci level of 0.786.

The substantial buying that occurred when $ETH hit this support level left a notable wick, likely indicating strong institutional interest in the cryptocurrency, which ranks second by market cap. It wouldn't be surprising if $ETH's price continues to climb from here, breaking through the local downtrend.

Has Bitcoin Dominance reached a turning point?

Source: TradingView

Bitcoin Dominance has remained high, but the recent upward surge was quickly reversed, pushing it back below the 61.5% horizontal resistance. Analysts, myself included, have been predicting a peak in Bitcoin Dominance. This time, unless unforeseen events occur, we might see the pivotal moment leading to a breakdown of the rising channel.

Significant market shifts often happen during the most turbulent times. Some argue that altcoins won't see much movement even if Bitcoin surpasses its previous all-time high. Nonetheless, the saying 'a rising tide lifts all boats' is likely to hold true here.

Certain altcoins set to surpass Bitcoin

While not every altcoin will outpace Bitcoin, some certainly will. Retail investors should aim to hold at least one or two of these outperformers. Altcoins aren't finished yet; there's still potential for growth in this bull cycle.

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.