Coin Edition -
- Analyst Rekt Capital revealed in an X post that the altcoin market is retesting historic levels.
- According to the post, these levels have preceded fantastic growth in the altcoin market.
- X user Will shared that the amount of stablecoins in circulation has risen 3.5% in the past 90 days.
The analyst and trader Rekt Capital revealed in an X post yesterday that the altcoin market is continuously retesting historic levels. According to the post, the levels that the altcoin market has retested over the last few weeks have historically “preceded fantastic growth” in the altcoin market.
$ALTSAltcoin Market Cap continues to perform historic retestsFirst the green circled retest a few weeks agoAnd now this yellow circle retest this weekHistorically, both of these retests preceded fantastic growth in the Altcoin Market#BTC #Crypto #Bitcoin pic.twitter.com/uI6G6Issxl— Rekt Capital (@rektcapital) December 16, 2023
A potential altcoin market breakout may be on cards as the amount of stablecoins in circulation has risen 3.5% over the last 90 days. In an X post published yesterday, the X account, Will, highlighted the uptick in stablecoin circulation. This was after the 90-day stablecoin supply flipped positive for the first time in 1.5 years on 11 November this year.
Stablecoins in circulation are now up 3.5% over the last 90 days https://t.co/Dc0TO9uEu8 pic.twitter.com/FKC46oPS78— Will (@WClementeIII) December 16, 2023
Daily chart for TOTAL2 (Source: TradingView)
From a technical perspective, a symmetrical triangle has formed on the daily chart for the altcoin market cap (TOTAL2). This particular pattern suggests that there may be a breakout soon. Should the altcoin market cap enter into a bullish move, it may attempt to flip the resistance level at $747.988 billion into support.
Thereafter, the altcoin market may continue rising. This could lead to the market’s valuation soaring to as high as $874.278 billion in the following week.
On the other hand, a negative breakout will lead to a retest of the $684.566 billion support in the following 72 hours. Continued sell pressure once TOTAL2 reaches this support level could then drag the market down to as low as $621.085 billion.
Technical indicators on TOTAL2’s daily chart suggested the market cap may undergo a temporary correction in the next 48 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators showed that buying power had dropped over the last few days.
The MACD line was positioned below the MACD Signal line, indicating that TOTAL2 has entered into a bearish trend. Meanwhile the RSI line was breaking away below the RSI Simple Moving Average (SMA) line. This specific technical flag signals that bears have gained the upper hand against bulls and seller’s strength is increasing.
The post Altcoin Market Could Break Out Soon as Stablecoin Supply Rises appeared first on Coin Edition.