Altcoins Experience Significant Surge in Market Cap
Altcoins have recently experienced a significant surge, with their combined market capitalization increasing from $575 billion to $615 billion in just a few days – a 7% increase. This momentum suggests the potential for further growth in the altcoin sector.
Breakout from the Descending Triangle
Altcoin market capitalization had been moving within a descending triangle pattern since its yearly high in April. This technical pattern, characterized by a series of lower highs but constant lows, typically indicates a bearish sentiment, suggesting that any rally is met with increasing selling pressure, keeping upward price movements under control.
However, this past weekend marked a significant change. Market capitalization broke through the upper resistance line of the pattern, surging by 7%. Such a breakout from a descending triangle is a bullish pattern that often indicates a reversal of the previous downtrend. With this breakout, market capitalization is now targeting the initial peak of the pattern, which could mean another 7% increase.
The significance of this breakout is further underscored by the fact that altcoin market capitalization not only broke resistance but also surpassed the previous high from July. This violation could be a signal that the market is transitioning from a bear-dominated phase to a bullish phase, where buyers regain control and drive the market to new heights.
Bitcoin’s Dominance Decreases
Bitcoin’s dominance in the market recently dropped to 52.50%, below the yearly high of 54%. This is a normal market fluctuation considering Bitcoin has been experiencing increasing dominance for ten weeks.
However, it is important to note that Bitcoin’s market share fell below the crucial support level of 53%. If Bitcoin fails to reclaim dominance above this level, further decline towards the next support at 49% could be expected, opening the door for altcoins to capture a larger share of the cryptocurrency market capitalization.
In bear markets, Bitcoin’s dominance tends to increase as the market recedes, indicating that altcoins could experience further rallies if Bitcoin manages to maintain or increase its price.
Top Altcoin Gains
Many altcoins experienced notable gains in the past week. Here are the top performers:
- PancakeSwap: +95%
- Trust Wallet Token: +53%
- Neo: +48%
- MultiversX: +46%
- Blurry: +45%
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Featured image by ShutterStock, charts by TradingView.com
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