Altcoin market struggles below $1.27T resistance as Bitcoin dominance remains high and liquidity flows into select outperformers only.
April’s breakout from the descending wedge boosted altcoin cap by $300B, but rejection at $1.27T signals fading short-term strength.
The $840B support is critical for sustaining April’s bullish trend as price consolidates tightly between $1.16T and $1.27T levels.
According to analyst Daan Crypto Trades, the altcoin market faces resistance near the $1.27 trillion level as bullish momentum fades. Despite Bitcoin reaching new all-time highs, altcoins remain in a corrective phase. The total altcoin market cap has been consolidating around the $1.16 trillion level since the final week of May. This level now serves as a key support zone following the failed breakout attempt above $1.27 trillion. The current structure reflects waning volatility and momentum, with price action tightening in a short-term range.
Breakout Fizzles After April Surge
The altcoin market saw a breakout in mid-April after a prolonged downtrend. This move followed a descending wedge pattern that began in late December 2024. The wedge coincided with a curved bottom, reinforcing the bullish reversal. Price surged nearly $300 billion after breaking above the wedge, pushing the market cap to test $1.27 trillion.
Source: Daan Crypto Trades
However, the rally lost strength at that resistance. The market rejected the level twice and entered a tight consolidation range just below it. This consolidation broke down at the end of May, dragging the market back to $1.16 trillion. The rejection at resistance marked a lower high compared to the December 2024 peak, signaling short-term weakness.
Key Levels Define the Path Ahead
The $840 billion level remains a crucial support zone for overall altcoin momentum. Holding above this area preserves the bullish structure built since April. However, until the $1.27 trillion level gets reclaimed, further upside will likely remain capped. Additionally, Bitcoin dominance remains near cycle highs, limiting capital flow into altcoins.
Furthermore, only a few altcoin sectors have demonstrated resilience, absorbing liquidity from less robust assets. The others are still having difficulty. A lack of consistent inflows and general market caution are reflected in this inconsistent performance.
Thus, the near forecast is defined by the existing range of $1.16 trillion to $1.27 trillion. Bullish momentum could be rekindled by a breach above resistance. However, if support wanes, there might be a further decline toward $1 trillion.
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