- Altcoin market cap nears critical support at $800 billion, hinting at a potential rebound.
- Volume analysis and OBV indicator shift towards buying, signaling a market recovery.
- Key resistance at $850 billion poses challenges; strategic buying is suggested for traders.
The altcoins market has experienced a slight downturn recently, according to IncomeSharks, a crypto analyst. The total market capitalization currently stands at approximately $834.77 billion, reflecting a decline of 1.79%. This shift underscores the ongoing volatility within the altcoin markets.
A close look at the chart in his X post shows that the market cap has touched a support level of nearly $800 billion. This indicates a possible bullish turn as it tries to rebound from recent lows. The resistance level to watch is projected at $850 billion, where traders might expect some challenges.
#Altcoins – Now that you just sold all your altcoins last week probably a good time to get back in. OBV has held support, and the chart finally made a higher low. Probably can grab 3 or 4 and walk away until December. Just don't hold for too long, actually take profits. pic.twitter.com/cSBzGtUP6S
— IncomeSharks (@IncomeSharks) September 9, 2024
The On-Balance Volume (OBV) indicator, which helps measure the flow of volume in relation to price movements, is currently at 31.408 trillion. This metric has seen a decline from May through August, which is in line with the decrease in market cap. This trend points to predominant selling pressure during these months. However, the recent stabilization in OBV could hint at a shift in market dynamics, possibly towards buying.
IncomeSharks suggests this might be a strategic time for traders to re-enter the altcoin markets. He advises picking three or four strong candidates and holding them until December. Notably, he stresses the need to realize profits and not hold onto the positions for too long. The analysis provides crucial insights into the altcoin markets, highlighting key levels and volume trends that could determine traders’ next moves.
Insights on Altcoin Market Trends
Cryptollica, a crypto analyst, examined the detailed chart from April 2015, revealing the market dynamics through technical indicators and historical data.
Total2 #altcoin Marketcap
— Cryptollica⚡️ (@Cryptollica) September 9, 2024
BUY & BYE Zones 🏦🍻🔆 pic.twitter.com/qqkN4uhW9J
The features include Trend Midlines and Support Levels, with level 1 and level 2 making important support and resistance points. Historically, these levels have elicited significant market reactions upon each test. They serve as critical guides for traders to gauge potential market shifts.
Volume analysis is crucial in this study. The bars depicting trading volumes correspond with significant price changes, especially around the ‘148 bar’ markers. These markers denote specific time frames necessary for particular price actions to occur.
Altcoins Set for a Breakout as Key Resistance TestedFuture Market Movements
The Guppy Multiple Moving Average (GMMA) indicator is also highlighted. Positioned in the chart’s lower section, it utilizes multiple moving averages to detect trend shifts and offers buying or selling signals. This indicator identifies optimal market entry and exit points through ‘buy’ and ‘bye’ annotations.
Looking forward to 2024, the GMMA lines predict a downtrend with a promising buy signal emerging later in the year, suggesting a possible uptick in the altcoin market cap. A forecasted consolidation zone, marked in yellow for November 2021, anticipates future market behavior based on past trends.
In conclusion, altcoins show potential for rebounding with market support at $800 billion. As OBV stabilizes and GMMA predicts uptrends, strategic buying in late 2024 could benefit traders. Monitoring resistance at $850 billion remains crucial for future investment decisions.
