- Benjamin Cowen noted in a tweet today that the altcoin market cap is struggling to break the 20-week and 50-week SMA lines.
- This week’s weekly candle may confirm another rejection from the SMA lines.
- A continued drop may result in TOTAL3 falling to $307.372 billion in the next few weeks.
The CEO and founder of Into The Cryptoverse Benjamin Cowen highlighted in a tweet earlier today that the altcoin market cap (TOTAL3) is struggling to clear the 20-week and 50-week SMA lines. In the post, he predicted that TOTAL3 might follow the same fate as the US 100 Index during the DotCom crash, and could continue to decline in the upcoming months.
TOTAL3 was able to break above the 2 SMA lines mentioned in Cowen’s tweet last week – reaching a high of $366.494 billion. Bears, however, exerted selling pressure on altcoins, which caused TOTAL3 to close the weekly candle below the 2 technical indicators.
The latest weekly candle may either confirm another rejection from the 20-week and 50-week SMA lines, or will be the weekly candle that finally closes above the specified SMA lines. Should this week’s close be lower than the weekly open of $353.835 billion, then it will serve as a confirmation of the rejection.
In this scenario, TOTAL3 may decline to the lower band of the Bollinger Bands indicator at $307.372 billion. It could retest the support at $284.89 billion as well. A rebound from this support level will lead to TOTAL3 attempting another challenge at the 20-week and 50-week SMA lines in the following weeks. A break below this level, however, will put the total at risk of falling to $155.862 billion.
On the other hand, a weekly close this week above the 20-week and 50-week SMA lines at approximately $363.565 billion may result in TOTAL3 climbing towards the upper band of the Bollinger Bands indicator at $402.197 billion in the upcoming weeks. Continued buy pressure could also push the altcoin market cap to above $481.161 billion.
A weekly close above $481.161 billion will then clear a path for TOTAL3 to test the $595.652 billion resistance. However, if TOTAL3 fails to close a weekly candle above the upper band of the Bollinger Bands at $402.197 billion, then it could pull back to the 20-week and 50-week SMA lines.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
