#altcoins After a massive four-year consolidation, the alternative cryptocurrency market may enter a phase of "final collapse" before achieving a significant and sustainable breakout, according to a growing number of technical analysts.
Analyst Ash Crypto shared this development today, indicating that the alternative cryptocurrency market may be approaching a significant breakout. This expectation excludes Bitcoin and Ethereum, focusing instead on the broader alternative coin sector.
Four-Year Ascending Triangle
According to Ash Crypto, the alternative cryptocurrency market has formed higher lows since 2020, while facing steady resistance at a major horizontal level. This formation creates an ascending triangle, a bullish chart pattern.
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The accompanying chart clearly illustrates this pattern, with the base of the triangle extending from early 2020, and price pressing against resistance over multiple attempts. The "final shakeout" thesis.
Furthermore, the publication suggests that the market may experience a "final shakeout," a temporary drop aimed at shaking out weak positions before a critical rise.
The idea of a four-year consolidation suggests that alternative cryptocurrencies have gained strength over time. While prices have fluctuated within a range, the overall trajectory of higher lows indicates increasing demand. This pattern suggests accumulation, a phase where buyers gradually build their positions.
It is worth noting that the last major surge in alternative cryptocurrencies occurred during the bull run of 2021, after which prices cooled down and entered a sideways phase.
Has "Altcoin Season 3.0" begun?
Supporting this bullish trend, analyst Danny noted that the altcoin index has just entered this critical phase. He pointed out that strategic investments being made now could yield tremendous returns. He shared a chart illustrating the beginning of Altcoin Season 3.0. This point represents a new phase in the four-year cryptocurrency cycle that reflects the explosive increases of 2017 and 2021.
Overall market sentiment remains mixed.
It is noteworthy that the total market capitalization of alternative cryptocurrencies, excluding Bitcoin and Ethereum, is currently estimated at around $823.1 billion. Over the past week, the market cap has decreased by about 5.8%, reflecting ongoing volatility as the market faces macroeconomic fluctuations.
Among the top alternative cryptocurrencies, is trading.
At around $645, down 0.8% from the previous day, increasing its losses to 3.3% over the past week. The price of Solana is approximately $145.6, showing a daily decline of about 1.3% in the same period.
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In contrast, Ripple's price stabilized at $2.16, recording modest gains during the day. Cardano (trading at approximately $0.60) is down 2.4%, while Tron’s price has increased by 0.9%, reaching $0.2757. These movements indicate a divergent trend among major altcoins, even as the broader market cap seeks to secure its breakout.