- An analyst predicted that the altcoin market could be preparing for a “storm.”
- The altcoin market was valued at around $685.2 billion at press time after it was able to establish a 24-hour high of $700.08 billion.
- If the altcoin market can close today’s daily candle above $684.566 billion, it may begin to climb to the closest resistance level at $747.988 billion.
The cryptocurrency trader and analyst who goes by the name of Moustache shared in an X post on December 5 that he believes “altcoins are preparing for a storm.” Although there might be a few dips in the altcoin market, the analyst urges traders to use them as buying opportunities.
On the daily chart for the total altcoin market cap (TOTAL2), the Moving Average Convergence Divergence (MACD) line was positioned above the MACD signal line. This suggests that the altcoin market cap may rise in the next few days.
Despite this, TOTAL2 dropped 1.43% over the past 24 hours. As a result, the altcoin market was valued at around $685.2 billion at press time. This was after it was able to establish a 24-hour high of $700.08 billion.
Despite this bullish technical flag being triggered over the past 48 hours, the Relative Strength Index (RSI) signaled a decrease in buyer strength. At press time, the RSI line was dropping towards the RSI Simple Moving Average (SMA) line. These two technical indicators intersecting could lead to a drop in the altcoin market cap, as sellers may gain the upper hand.
If this bearish technical flag is confirmed and validated in the next 24 hours, TOTAL2 could fall below the key $684.566 billion support level that it was resting on at press time. This may then be followed by a drop to the subsequent support level of $621.085 billion in the following couple of days. In an extremely bearish scenario, TOTAL2 could plummet to as low as $574.789 billion.
This bearish thesis could be invalidated if TOTAL2 closes today’s daily candle above $684.566 billion. A daily candle close above this key mark may trigger an influx of capital in the altcoin market. Subsequently, TOTAL2 may begin to climb to the closest resistance level at $747.988 billion.
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