A new pattern is emerging in the altcoin dominance chart—and it might just change how we navigate the coming weeks in crypto! Let’s break it down and see what the market is whispering to us…
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1. The Bigger Picture 🧩
The chart shows the dominance of altcoins (excluding the top 10) and seems to follow a classic Elliott Wave structure. We're currently moving through a corrective wave cycle, which typically consists of five waves. Based on this structure:
Waves (1) and (2) completed during the late 2024 surge.
We're currently navigating waves (3) and (4), with a possible dip toward wave (5) forming soon.
This implies caution—but also opportunity, especially if you're patient.
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2. Bullish vs Bearish Sentiment ⚔️
Throughout the sideways consolidation (marked by multiple “BULL” signals on the chart), short-term bounces have appeared—yet they’ve failed to flip the broader trend. The MACD indicator at the bottom highlights a double bullish divergence, which may support a relief rally before further downside continuation.
However, there’s also a strong resistance zone near 9.3%, and the price recently reacted bearishly from that level. This adds to the idea that a bull trap might be forming before a move lower.
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3. Key Resistance & Fibonacci Level 📏
The 0.382 Fibonacci retracement level is aligned near 9.3%, and it's acting as a ceiling for now.
If this level holds, we could see a short-lived bounce toward “(4)” before the final drop to “(5)” completes the wave structure.
That said, we’re not predicting—just observing. Always let the price confirm your thesis.
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4. What Smart Traders Should Do Now 🧠⚙️
In markets like these, following good trading discipline is key. Stick to these principles:
Don’t chase pumps—wait for confirmations, not emotions.
Use stop-losses and plan for both scenarios (upside and downside).
Stay informed—watch dominance and volume, not just price.
Don’t overexpose to low-cap assets during high-risk phases.
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5. Conclusion: Stay Nimble 🤹♂️
Altcoins could be approaching an inflection point. While momentum indicators suggest a potential bounce, the overall structure hints that one final wave down may still be ahead. This isn’t a time for blind optimism—but it’s definitely a moment to stay alert, educated, and ready.
Let the market show its hand—then act with precision!
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This article is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk wisely.
