Altcoins Poised for Breakout as Market Retests Key Resistance

• Altcoins retest a four-year wedge, with resistance at $1.51T and support at $1.04T.
• A breakout above $1.51T could trigger a rally, while rejection may lead to consolidation. 
• Altcoin market volume hits $1.75T as traders watch key resistance for breakout signals. 

Crypto analyst Moustache provides recent insights on X that indicate an evolving trend within the altcoin market. The total market value chart for cryptocurrencies aside from Bitcoin, TOTAL2, shows an ongoing retest of its descending broadening wedge pattern. The pattern has formed over four years since mid-2021. The chart highlights that altcoins have hit the descending broadening wedge’s upper resistance levels multiple times in 2021 and early 2024 and later moved to correction modes.

The current TOTAL2 market value is 1.04 trillion, down 2.74% from the previous day. Despite the short-term decrease, the analysis projects improved outlooks for the medium and long term. Moustache points out that the recent price level follows previous market patterns, including the 2014-2018 trend. The altcoin market demonstrated substantial growth after experiencing a heightened impulse wave when it retested the pattern observed in 2014-2018. The chart exhibits this pattern where it shows an intermediate-term downward phase before entering an extended upward trend.

What Does the Historical Pattern Suggest for Altcoins?

Historical market analysis shows that during the 2014-2018 period, altcoins experienced an upward impulse wave following the double bottom pattern. The market exhibited two double bottoms starting in 2020 before generating a new impulse wave throughout 2021. The market patterns in 2025 reflect the previously observed trends. The present pattern of a descending broadening wedge during the current retest indicates that altcoins may soon execute a breakout. 

Source; TRADINGVIEW 

According to the chart the resistance levels at 1.51 trillion dollars have posed difficulties for altcoins to overcome in modern history. Volume trends provide additional context. This chart demonstrates continuous trading volume growth starting from 2023 with temporary spikes coinciding with price spikes. The increasing trading volume confirms market participants become more involved before substantial price changes occur. 

According to Moustache, investors should exercise diligence when evaluating short-term market action since it can lead to inaccurate conclusions. The broader trend maintains stability as a potential positive movement could emerge if the retesting phase succeeds.

Final Verdict: Will Altcoins Spark a Rally in 2025?

The retesting process within a four-year descending broadening wedge pattern indicates that altcoins will likely experience a breakout. The past historical data from 2014-2018 and 2020-2021 indicate that this dynamic would initiate major price changes. The retest will trigger a renewed altcoin rally as soon as March 2025, attracting strong investor interest if it persists above the 1.51 trillion dollar resistance threshold.

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