Analysts are observing technical signals suggesting a potential reversal in the long-term altcoin downtrend. The TOTAL2 chart tracking altcoin market cap has broken out of a multi-year falling wedge pattern, a classic reversal indicator. Furthermore, the MACD indicator is nearing a bullish crossover, mirroring a setup seen before the 2020 rally. This comes as the broader cryptocurrency market shows strength, with the total market cap rising above $2.5 trillion.
Market analysts are noting technical signals for altcoins not seen since 2020, fueling speculation of a potential rally. A multi-year falling wedge breakout on the TOTAL2 chart and an approaching MACD crossover are drawing significant attention.
Analyst Mark Chadwick highlighted this setup, stating altcoins were “starting to look insane.” He claimed the break above the prolonged wedge typically signals a reversal, with the MACD poised for a bullish crossover.
“If MACD flips green and confirms the crossover in the coming weeks… Follow the arrow for directions. Higher,” Chadwick wrote. Other observers like Crypto Patel also noted altcoins bouncing from a long-term support trendline, suggesting the bottom may be in.
Short-term market data supports renewed strength, with several altcoins posting gains over 10% in 24 hours. The total crypto market capitalization increased by more than 4% to approximately $2.5 trillion, while Bitcoin reclaimed a price above $72,000.
This optimism follows a difficult period where over 40% of tokens traded near all-time lows, a deeper drawdown than the previous bear market. Conditions remain mixed, however, as Bitcoin’s recent dip below $70,000 caused declines for other major altcoins.
Analyst Ash Crypto recently pointed out that ALT/BTC charts are showing momentum with multiple green MACD bars for the first time in years. They did not declare a full altcoin cycle underway, noting factors like Bitcoin’s dominance still need to shift.
