- The 3-week RSI mirrors pre-2017 breakout trends, suggesting an imminent rally in altcoins.
- Altcoin market consolidation in 2024 resembles the 2016 setup before the massive surge.
- Analysts expect a major price explosion once the RSI breaks through its downtrend.
The altcoin market shows signs of an impending surge reminiscent of the 2016-2017 bull run, as the RSI nears a critical breakout level. If this breakout happens, analysts foresee a massive rally, echoing historical patterns.
Key Market Phases and Indicators
The prediction comes after a detailed technical analysis of the total crypto market cap, excluding Bitcoin. The analysis highlights key market phases, particularly using Elliott Wave Theory and the Relative Strength Index (RSI). Elliott Wave Theory helps predict trends, while the RSI tracks price movements.
The analyst suggests we are currently in a consolidation phase similar to Wave 1 in 2016. In both 2016 and now, the market experienced an initial surge followed by a prolonged period of sideways trading. This historical similarity raises the possibility of a repeat performance, akin to the 2017 bull run.
Read also: Bitcoin’s Strength Contrasts with Muted Altcoin Market
RSI as a Leading Indicator
One of the most interesting observations in this analysis comes from the 3-week RSI. Looking at past trends, the RSI has served as a reliable indicator of future market movements, particularly in longer time frames such as the 3-week chart.
Currently, the RSI is on a clear downtrend, mirroring the pattern seen before the 2016 bull market. The moment the RSI broke through its downtrend during that period, the market witnessed a swift and substantial upward movement. A similar breakout now could lead to what the analyst describes as “fireworks”—a dramatic surge in altcoin prices.
Optimism Tempered with Caution
While the above analysis paints an optimistic picture, past performance is never a guarantee of future results. The similarities between the current period and 2016 are noteworthy, but the market is taking longer to develop this time around. This could result in a more sustained altcoin rally as we move into 2024.
Read also: Meme Coin Meltdown: Are Dogecoin, Shiba Inu, FLOKI, and PEPE Doomed?
For traders and investors, monitoring the RSI closely in the coming months may provide an early signal of when the next major altcoin rally will begin.
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