Technicals Suggest The Altcoin Market Cap Will Continue To Slide

• Santiment revealed in a Tweet today that short & mid-term realized caps are far below market caps.
• The last time this was observed was early in March 2023 right before a 1-month surge.
• Several technical indicators suggest that the altcoin market cap could continue to slide in the next 24-48 hours.

The market intelligence platform, Santiment, shared a post on Twitter today about the realized caps of altcoins being very undervalued. According to the post, the short and mid-term realized capitalizations of cryptocurrencies are significantly lower than their respective market capitalizations, especially for smaller and less well-known altcoins. 

The current situation is reminiscent of early March 2023, which was the last time this kind of undervalued realized cap level was observed. Previously, this came just before a 1-month surge, but only time will tell if this will be the case in the current market scenario.

The total altcoin crypto market cap plummeted below the key support level at $550.683 billion over the past 24 hours. It then looked to do the same with the next crucial support level at $496.684 billion, but was unable to flip the level into resistance.

Several technical bearish flags triggered recently, which suggest that the total altcoin market cap will continue to slide in the next 24-48 hours. The 9-day EMA line had crossed bearishly below the 20-day EMA line on Monday, and the daily RSI line had crossed bearishly below the daily RSI SMA line on 4 June 2023.

Should these bearish flags be validated, the total altcoin market cap may look to flip the aforementioned support level at $496.684 billion into resistance in the coming 48 hours. However, the daily RSI line on the chart is in extremely oversold territory, which may be seen as an opportunity to buy altcoins at a discount in the coming 24 hours.

If the total does not close a daily session below $496.684 billion in the coming 48 hours, then it may look to rise back to $550.683 billion in the following few days. Conversely, a daily close below this level over the next 2 days will put the total altcoin market cap at risk of falling to $463.204 billion.

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