Altcoin Rally Incoming as This Breakout Sparks Bullish Momentum
Key Insights:
- The TOTAL3 chart broke out of a multi-year cup and handle pattern, signaling a bullish continuation for altcoins.
- Altcoin market cap excluding ETH and BTC is nearing the $1.1T resistance, with potential upside to $1.35T–$1.6T if broken.
- Historical cycles show altcoin rallies peak after accumulation and breakouts, with gains in just a few monthly candles.
The altcoin market has triggered renewed excitement after a breakout from a multi-year accumulation structure. The TOTAL3 has developed a bullish movement that may lead to a significant upside continuation. With price action approaching a $1.1 trillion resistance, there is a historical precedent that altcoins could soon be headed into a high-powered phase of rallying.
Altcoins Approach Breakout Confirmation
The altcoin market, excluding Bitcoin and Ethereum, is nearing a breakout point of about $1.1 trillion. The TOTAL3 chart, which tracks the market cap of all the other altcoins, is currently showing a perfect cup and handle pattern. Analyst Jelle considered this structure as a strong indication of a bullish continuation.
Interestingly, the current trend pushes against the handle resistance, and the volume is gradually increasing. Once this neckline is broken, the market can move to reach $1.35 trillion to $1.6 trillion. On the weekly timeframe, TOTAL3 has been forming consistent higher lows. This trend indicated buyer concentration in the regions around the $950 billion level.
Furthermore, confirming technical indicators increased volume and held around significant moving averages. All these increased the possibility of a breakout continuation. In case the resistance is breached, the market will experience a massive bull run.
Historical Cycles Show Rallies Accelerate Post-Breakout
The past altcoin rally cycles demonstrated a standard structure of accumulation, breakout, and swift parabolic increase. Analyst Mags shared a chart that compared the history of past market cap cycles of 2018 and 2021 to the current point.
Every cycle started with extended horizontal moves and the vertically explosive move after the price broke an important resistance.
Mags labeled the current phase as “we are here,” indicating that altcoins have just exited accumulation and are about to enter the “up only” region. In the 2020-2021 cycle, the altcoin market cap soared to $1 trillion in four monthly candles, a 3x increase. The current 2025 outlook is focused on a $5 trillion cycle peak in the same trend.
Mags stressed that the real upstarts only appear near the end when the price becomes vertical. He cautioned that the greatest profits can occur suddenly, surprising many people.
Momentum Builds as These Indicators Align
On-chain metrics indicated an increasing enthusiasm and price action in altcoins. Altcoin Season Index rose to 36 up against 21 in the past month. Since 75 is perceived as the full altcoin season, the positive pattern signifies more rotation of capital.
Furthermore, a recent chart by CryptoELITES showed TOTAL3 breaking above a long-term descending trendline. This growth was developed in a rounded support base at a critical cross-point zone. He marked the breakout as the official end of the downtrend. The chart projected a gradual rise toward a full altcoin season over the coming months.
Meanwhile, sentiment is shifting across the board. Volume is growing in smaller-cap assets, while Bitcoin dominance has flattened. Traders are rotating funds into altcoins that offer higher upside potential.
Other reports have upheld the altseason breakout, with a high-level bounce formation on the Altcoin Season Index. According to analyst Michael van de Poppe, the macro factors of reduced tariffs, possible ETF approvals, and historical tendencies are the catalysts.
Other Dominance Chart Confirms Bullish Trend
Meanwhile, a chart shared by GalaxyTrading revealed an inverse head and shoulders forming on the Others Dominance chart.
The Other’s dominance pattern has formed a left shoulder, head, and right shoulder, with a neckline near 7.8%. If the setup is complete and the price breaks above this level, dominance could rise sharply to 10.5%. An increase in market share in mid and low-cap altcoins would indicate a breakout.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
