Recently, this has started to change as some altcoins have seen a significant increase. Especially, coins based in China have increased sharply since October 25. Most notably, NEO and TRX increased by 83% and 40% during this period. However, the rest of the market has lagged behind.
This increase has led many investors and traders to believe that the altcoin season has finally begun. It was a time when altcoins had a phenomenal rate of increase, leading to a decline in Bitcoin dominance.
Technical analysis shows that while altcoin market capitalization and its dominance seem to increase over the long term, both are likely to decline in the short term.
According to TraderEscobar trader, some altcoins have started to increase, signaling altcoin price pump until the end of this year.
“Total altcoin market capitalization and altcoin dominance rate.
A lot of altcoins are currently in accumulation periods, some of which are on the rise... I'm curious to see what these charts will look like...
Conclusion - Altcoin Pump in the fourth quarter is very likely
In addition, he said that both altcoin market capitalization and altcoin dominance charts seem to have increased.
Total market capitalization
Total altcoin market capitalization broke out of the descending resistance line formed in July, before confirming support.
It then created a double bottom in the support area of $ 70 trillion before starting the current price move. The double bottom is combined with bullish divergence in the RSI.
In the short term, a head and shoulders pattern (which is a bearish pattern) may develop. This prediction is more likely to occur because it is associated with bearish divergence.
Therefore, while the long-term outlook seems to increase, the short-term price decreases. The price is expected to fall to the small support area of $76 trillion.
The dominance rate of altcoin
The altcoin's dominance rate hit the bottom in September, inside the support area of 30%. In addition, there is a major support area at 22%. The low is combined with the oversold value in the weekly RSI, which is the lowest value ever recorded.
In the short term, the dominance rate has broken below the support line applied since the aforementioned low.
The support will be confirmed as resistance in the resistance zone at 35%.
Similar to the total market capitalization, the short-term prospect of dominance appears to be declining.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.