The total altcoin market capitalization is in a consolidation that dates back to mid-2022. Technical indicators currently suggest the possibility of a breakout, which may ignite a new altcoin season.
Still, this will require new capital inflows, increased altcoin trading volume, and a sustained close above a critical resistance area.
Altcoin Market Capitalization on the Rise
The altcoin market capitalization is in the process of forming its fourth consecutive weekly green candle. Each candle had a body size of about 6%, but together with the wicks, these represent a 35% price increase over the past month.
This upward move is significant, pushing the altcoin market cap to the long-term resistance area at $657 billion. This crucial resistance barrier has existed since mid-2022, even acting as support several times during the 2021 bull market.
The altcoin market cap also formed triple bottom support at $494 billion, creating a solid structure for a potential bull market. Indeed, the first higher high in 1.5 years was created in April, while June, August, and October managed to hold a higher low at the support zone.
If the altcoin market capitalization continues to increase, it will not only break out of the long-term resistance area but also generate another higher high. This could potentially confirm the start of a new bull market on the long-term chart.
Read more: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
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Author: Jakub Dziadkowiec
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