Altcoin season may be near: key technical signals

The altcoin market may be on the cusp of a major shift, and analyst Ash Crypto points out some important technical signals that could herald the start of a new “altcoin season.” Let’s take a closer look at what’s happening in the market and what factors could influence its further development.

Hidden Bullish Divergence in RSI

Ash Crypto spotted a hidden bullish divergence in the Relative Strength Indicator (RSI) on the weekly chart. This pattern signals that despite the price decline, the underlying momentum is actually increasing. This could indicate a potential reversal, which is a good sign for investors expecting altcoins to rally.

“Hidden bullish divergence in RSI on the weekly chart could signal the start of a big altcoin season,” Ash Crypto tweeted.

Altcoin Market Cap

The key level for the altcoin market is the $1.06 trillion market cap. In order to confirm a short-term recovery, the market cap needs to break through this mark. At the moment, the total value of the altcoin market has been hovering around the $1.03 trillion level, which gives hope for a possible rebound.

Current Market Situation

Despite potential signs of a reversal, major altcoins such as Ethereum, XRP, and Solana continue to show declines. This reflects a cautious mood in the market, and investors remain wary. Altcoin prices are still below several important moving averages, indicating that the recovery may not be that simple.

Resistance Levels

The 200-day simple moving average (SMA) is currently around $1.16 trillion and acts as a significant resistance level. Breaking this level could be an important step to confirm the start of a new altcoin season.

In Conclusion

Overall, the altcoin market may be on the cusp of change, and technical signals such as the hidden bullish divergence on the RSI may indicate a possible reversal. However, for this scenario to be confirmed, the market capitalization must break through key resistance levels. Investors should closely monitor the situation and be prepared for possible price fluctuations.