- TOTAL3 needs a 16% increase to reach $1.13 trillion, potentially starting the “euphoria” phase in the altcoin market.
- Altcoin market surged 91.45% since January, still short of the 2021 peak despite strong recent performance.
Altcoins are nearing a critical financial threshold with a current total capitalization of $962.78 billion. For traders to enter what is known as the “euphoria” phase, marked by potential large-scale price gains, TOTAL3—which excludes Bitcoin and Ethereum—must increase by approximately 16% to reach the $1.13 trillion mark last achieved in 2021.
The market has surged 91.45% since January, yet remains below its historical peak. Analysts like Daan Crypto Trades believe that unless this peak is exceeded, altcoin prices will likely fluctuate widely, staying within the $840 billion to $1.1 trillion range.
All you need for $ALTS:
Currently, the altcoin total market cap is consolidating beneath its all time high, after shortly breaking it and rejecting.
As long as this trades between ~$840B & ~$1.1T I think it will be choppy.
The Euphoria/Mania Phase should begin upon breaching… pic.twitter.com/ybqmU88lFu
— Daan Crypto Trades (@DaanCrypto) December 28, 2024
This uncertainty has shifted trading strategies, leading to greater market volatility as participants frequently adjust their positions based on short-term price movements. Despite these fluctuations, several altcoins have shown robust performance recently. For example, AI16Z has doubled in value, while Bitget Token (BGB) and Virtuals Protocol (VIRTUAL) have also posted strong gains.
Everyone decided they were George Soros all of a sudden this cycle and constantly monitoring hourly charts to time entries / exits and playing with leverage.
That has been the biggest driver of charts failing to breakout as fast as prior cycles and many freak out charts failing… https://t.co/9EgyPsUqVV
— Daniel Cheung (@HighCoinviction) December 28, 2024
With Bitcoin’s dominance just below 60% and its price leveling off, the spotlight is shifting towards altcoins as potentially offering better returns. Some traders are now recommending increasing investments in altcoins rather than Bitcoin, predicting that surpassing the $1.13 trillion threshold could catalyze a significant market rally.
Analysis of TOTAL3’s Daily Market Trends and Key Levels
The current price of TOTAL3, which represents the cryptocurrency market cap excluding BTC and ETH, is approximately $929.73B, reflecting a slight decline of -0.74%. The chart provided indicates that the market is consolidating after a significant bullish rally, with resistance near $1.08T and support in the $880B range.
Key structural levels from the chart highlight important areas to watch. The Previous Week High (PWH) at $1.08T acted as a strong resistance point, leading to the recent decline. On the downside, the Previous Week Low (PWL) and the highlighted Discount Zone near $880B serve as critical support levels. If the price breaks below these supports, there is a risk of a deeper correction toward $800B or even lower levels.
The chart also shows significant shifts in market structure with Change of Character (CHoCH) and Break of Structure (BOS) markers. These shifts indicate moments when the market transitioned between bullish and bearish trends. The most recent CHoCH points near the highs suggest a bearish reversal, further supported by the rejection at the premium zone above $1T.
Additionally, the OBV MACD indicator shows weakening bullish momentum, as the histogram has turned negative. This implies reduced buying pressure and the possibility of continued selling dominance in the short term. The overall trend appears to be a consolidation phase with a bearish bias, especially if the price fails to recover above $1T in the near term.
The price of TOTAL3 is likely to remain range-bound between $880B and $1T in the short term. A bullish breakout above $1.08T could signal renewed upward momentum, while a breakdown below $880B might trigger a deeper decline into the Discount Zone.
