- Altcoin market cap stands at $887.96B, rising 1.39% as it nears key resistance.
- The $1.7T resistance is a pivotal level that could trigger either a breakout or correction.
- Failing to hold $800B support may lead to a deeper drop in altcoin market value.
The total market capitalization of altcoins, excluding Bitcoin and Ethereum, currently stands at $887.96 billion, reflecting a 1.39% daily increase. According to analyst MikyEdge, the chart highlights that the altcoin market is entering the final phase of a rally, as the price hovers near the upper boundary of a rising channel. This channel has consistently guided the market’s growth since 2018, with clear support and resistance levels dictating the long-term trajectory.
The latest upward move signals the potential for altcoins to test the channel’s upper limit, estimated at approximately $1.7 trillion. MikyEdge suggests that the breakout from this critical resistance could either solidify the rally’s continuation or signal the start of a major correction phase.
A Historic Perspective on Altcoin Growth
The chart reveals a consistent long-term growth trajectory for the altcoin market, with the lower boundary of the channel providing robust support during downturns. Notable rebounds occurred in 2019 and 2020, when market caps dropped near the $100 billion level before recovering. The current rally aligns with historical patterns, suggesting a possible climb toward the upper channel boundary.
However, historical pullbacks from this resistance level, such as those seen in early 2018 and late 2021, warn of potential volatility. The orange arrow on the chart highlights a likely rally extension, but traders should remain cautious as the upper resistance has repeatedly acted as a turning point for significant corrections.
Current Rally Signals Strength, But Risks Persist
The 1.39% daily increase in market cap reflects renewed confidence in altcoins, driven by a mix of improving sentiment and speculative demand. Despite this, the proximity to the upper boundary of the channel near $1.7 trillion raises concerns about whether the market can sustain further growth without a correction.
Should the altcoin market breach the resistance, it could pave the way for a new leg of the bull run. On the flip side, a rejection at these levels could result in a pullback to mid-channel support near $700 billion, or even lower if bearish momentum intensifies.
