Are we on the brink of an altcoins season? Market analysis and recent trends suggest that we are nearing the period where alternative cryptocurrencies outperform Bitcoin (BTC) and Ethereum (ETH). The overall market capitalization of altcoins is hinting at a bullish inverse head-and-shoulders (H&S) pattern, suggesting that altcoins could lead the next bull run.
Understanding the Altcoins Season
The term ‘altcoin’ is short for ‘alternative coin’, referring to any cryptocurrency other than Bitcoin. The idea of an altcoins season is when these alternative cryptocurrencies start to outperform Bitcoin and Ethereum. This typically happens when the total market cap of altcoins crosses a specific threshold. In this case, the magic number seems to be $300 billion.
One of the reliable bullish patterns in technical analysis, the inverse head-and-shoulders pattern, is currently forming in the market cap of altcoins. This pattern is confirmed when an asset forms three price troughs, with the middle one being the lowest. A bullish trend reversal is confirmed once prices rise above the trendline connecting the peaks between the lows.
Altcoins Leading the Charge
Here are the top 5 altcoins that have shown impressive gains this week:
- Shiba Inu: Leading the altcoin market, Shiba Inu has seen a substantial price increase. If the bullish trend continues, the price could potentially reach $0.0000113, marking a 12% increase based on the current price.
- THORChain (RUNE): RUNE has also been on a bullish trend, currently trading within the horizontal resistance zone at $1.10. If it breaks out, it could potentially reach $1.70, the next resistance level.
- OKB: The OKB price has been moving within a symmetrical triangle since February. If it breaks out, it could potentially reach $72, marking a new all-time high.
- DYDX: If DYDX breaks out from its current resistance line, it could rise to the next level of resistance at $3.20, a 45% increase from the current price.
- Synthetix Network (SNX): If the price of SNX continues to rise, it could potentially reach the $2.90 resistance level, marking a 14% increase relative to the current price.
Staying Informed in the Altcoins Season
As we inch closer to the altcoins season, staying informed about market trends is crucial. Platforms like cryptoview.io provide a comprehensive view of the cryptocurrency market, helping traders and investors make informed decisions. The platform offers real-time data, making it a valuable tool for anyone interested in the crypto space.
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Remember, the cryptocurrency market is highly volatile, and it’s essential to do your own research before making any investment decisions.
