Altcoins
Key Trend Driving Altcoin Market Toward $425 Billion: Analyst
Amid the bullish sentiment around the crypto landscape, the overall Altcoin market cap has displayed positive strength as many investors and traders pour capital into several altcoins ahead of the bull cycle.
Altcoin Market to Rally to $425 Billion
Since Bitcoin hit a new all-time high, many cryptocurrency analysts are expecting an increase in the altcoin’s market capitalization. Rekt Capital, expert and trader in cryptocurrency, has sharing a positive prediction regarding the market capitalization of altcoins with the community on
The expert analysis looks at the current state of the market and its upside potential in the coming months. His projections came in light of the Altcoin Season Index showing progression, which suggests its season is almost here.
According to the analyst, the market was “redirected towards the test zone circled in blue”, due to the rejection of the “red circle zone”. However, the market has since rebounded, indicating an increase interest among market investors.
Additionally, Rekt Capital noted that the market has surpassed the “red resistance line of $315 billion.” As a result, the red line resistance level has now been replaced by a “new support level”. For this reason, the crypto analyst predicts a surge towards the “light blue circle” at the threshold of $425 billion in the coming months.
The message said:
The area circled in red rejected the Altcoin market into the retest zone circled in blue. Since then, the Altcoin market cap has recovered, surpassed the $315 billion red resistance, and recently turned into new support. Next comes the light blue circle, over time.
However, Rekt Capital also claimed in another recent job that “the $315 billion mark is still being retested by the new alternative market cap support.” It was unable to surpass it despite the current double-digit declines of several altcoins.
Even though the market is still retesting the aforementioned level, Rekt Capital is confident that it will “revisit the $425 billion resistance soon.” He expects the market to return to the level before the Bitcoin halved event, which is expected to take place in April.
Alts gains are sustainable and likely to collapse
Samson Mow, CEO of Bitcoin technology company JAN3, also sharing his ideas on the altcoin market. Although he anticipates the altcoin market to rise, Mow stressed that he expects altcoins to “collapse in the coming weeks.”
According to Mow, alts have been monitoring the “Bitcoin surge” following the launch of BTC Spot exchange-traded funds (ETFs). However, altcoins do not have “the $500 million to $1 billion daily inflows” seen with Bitcoin.
Therefore, this should be the “major sign” that their earnings “cannot” be maintained. “MSTR has a market capitalization of $30 billion, Solana is $73 billion. It’s absurd. A correction is expected,” he added.
Featured image from Shutterstock, chart from Tradingview.com