Capitalization #altcoins #total3 : bearish trend with signs of local reversal

At the current stage of market dynamics in cryptocurrencies, the TOTAL3 indicator — the total capitalization of all altcoins, excluding $BTC and $ETH — deserves special attention. Despite the dominant downward trend, the chart shows potential signals for the formation of a local reversal.


Overall picture: a persistent downward trend

The TOTAL3 chart on the daily timeframe shows a clearly expressed movement within a descending price channel that began in late 2024. The current market behavior is characterized by successive declines in highs and lows, indicating the predominance of sellers and a lack of sustainable buying activity.


Local signs of a possible reversal

In the context of technical analysis, several factors can be highlighted that indicate a potential weakening of pressure from bears:


1. Bounce from the lower boundary of the channel

The price has tested the lower boundary of the descending channel once again and bounced upward. This indicates the presence of a significant dynamic support level, which may suggest a short-term reaction from buyers.


2. Divergence according to the RSI indicator

The Relative Strength Index (RSI) at the time of updating the price minimum did not confirm it, forming a bullish divergence. This may indicate a slowdown in the downward momentum and a possible transition of the market into a consolidation phase or corrective growth.


3. Formation of the 'double bottom' pattern

If there is a consolidation above the level of 760 billion dollars in the coming sessions, this may confirm the reversal pattern 'double bottom', with further targets in the range of 800–850 billion dollars.


Technical levels


Support levels: 680 and 730 billion dollars — the lower boundary of the descending channel and the local minimum.




Resistance levels: 760 and 840 billion dollars — a zone of potential breakout and the upper boundary of the channel.




Target levels upon breakout upwards: 930 billion – 1.1 trillion dollars — key benchmarks in the development of a bullish scenario.




Conclusion

Despite the ongoing downward trend, technical signals of potential stabilization and the beginning of corrective movement are appearing in the market. A breakout and consolidation above the upper boundary of the descending channel will be a key confirmation of a change in market trend. Until then, the scenario of continued pressure from sellers remains dominant.