According to crypto analyst Michaël van de Poppe, the altcoin market capitalization appears to be forming a bottoming structure after an extended period of weakness. His view is based on the market’s current behavior around a higher-timeframe support zone, as shown in the attached chart.
Van de Poppe explains that altcoins are no longer trending sharply lower. Instead, the market is moving sideways while holding above a key support area. This type of consolidation suggests that selling pressure is easing and that buyers are starting to absorb supply.
What his chart is showing
The chart tracks altcoin market capitalization excluding Bitcoin and Ethereum, offering a clearer view of broader altcoin performance. Price is sitting inside a clearly marked support region, highlighted near the lower part of the chart. This area has acted as a floor where downside attempts are repeatedly defended.
Rather than breaking lower, the market is consolidating within this zone. Van de Poppe points out that this sideways movement indicates buy pressure, not weakness, as sellers have failed to push prices to new lows.
A key technical feature on the chart is the 20-day moving average. Since the beginning of October, the altcoin market has remained below this moving average, confirming a sustained downtrend. However, current price action shows the market approaching what could become the first break above the 20-day MA in nearly three months.
Why this level matters
Van de Poppe notes that a breakout above the 20-day moving average would be technically significant. It would mark a shift away from persistent downside control and could signal the early stages of trend reversal. While confirmation is still needed, such a move would align with the broader bottoming structure forming at higher-timeframe support.
For now, the analyst emphasizes that the market is still in consolidation mode. But holding support, moving sideways, and nearing a moving-average breakout together form the foundation for a potential trend change in the altcoin market.
