Traders Predict ‘Insane Pump’ with Altcoins Near Key Resistance Zones

Analysts are once again speculating about the onset of altseason following a notable increase in the total market capitalization of altcoins, including Ether (ETH), which is nearing a significant resistance point.

Crypto traders and analysts have turned their attention to altcoins after Ether surged by 27% in the last week.

According to TradingView, the total market capitalization of altcoins stands at approximately $1.16 trillion, reflecting a 15% increase over the past two weeks. This market cap is nearing the resistance levels seen in mid-March when it peaked at $1.2 trillion.

On May 26, ‘Trader Tardigrade’ informed their 50,000 followers on X that the altcoin market might triple its total market cap if it breaks out from an “inverse head-and-shoulders pattern.”

“It is anticipated to break out within a few weeks based on this pattern,” they noted.

In a separate post on X, technical analyst ‘Yoddha’ predicted: “Expect a massive surge in altcoins once this breaks above the weekly resistance.”

Similarly, analyst ‘Moustache’ echoed this sentiment to his 120,000 followers on X, commenting, “Altseason is just around the corner,” and sharing a comparable chart.

Source: Moustache

Altcoins Gain Strength As Bitcoin’s Market Dominance Drops To 53.9%

Analysts have noted a recurring pattern in previous market cycles where Bitcoin prices typically surge first, followed by Ether, and subsequently the broader altcoin markets, as investment capital flows into lower-cap coins.

Bitcoin’s market dominance has decreased by 3.7% over the past two weeks, now standing at 53.9%, indicating a rising strength in the altcoin markets.

On May 25, MN Trading founder Michaël van de Poppe highlighted in a post on X that the recent market correction of approximately 25% resulted in a more significant 50-70% correction for altcoins.

He forecasted that in this cycle, the total cryptocurrency market capitalization could reach $15 trillion, a 450% increase from the current $2.7 trillion.

According to CoinGecko, the total crypto market cap has remained within a range over the past three months, fluctuating between a high of $2.9 trillion in mid-March and a low of $2.3 trillion on May 1.

Related Reading | Ethereum ETF Good For Bitcoin: Michael Saylor

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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