Is a Bullish Breakout Imminent for Altcoins?

The TOTAL3 index, which measures the combined performance of all altcoins other than Bitcoin and Ethereum, has retested a crucial trendline for the first time in the last 18 months. A bullish signal that could mark the beginning of a broader altcoin rally. The breakout from the falling wedge pattern, as evidenced by the RSI, also supports the bulls with a higher target.

Analyst Moustache reveals that TOTAL3 has been on the rise since the beginning of 2023. The chart shows a well-defined ascending channel, with price consistently bouncing off key support levels. This consistent behavior reinforces the strength of the trendline and suggests continued bullish momentum.

The recent rebound from support indicates that the trend remains intact, and the altcoin market may be preparing for a rebound. Additionally, the RSI has broken out of a downward wedge pattern, which often signals a potential reversal and renewed buying pressure. Market participants are now waiting for confirmation of this breakout, which might result in a bigger move.

RSI Falling Wedge Pattern

The RSI on the chart depicts a falling wedge pattern, a classic bullish formation. This formation is a preliminary sign of an explosion as it suggests that market activity is on the rise regardless of price swings. This allows prices to spike easily as they approach the apex of the wedge. The breakout target based on the Falling Wedge pattern implies that the TOTAL3 index has the potential to move much higher in the near future as prices rise.

For TOTAL3, the critical resistance level is set at $1.75T. A decisive break above this level would likely confirm a bullish continuation, potentially marking the start of a broader altcoin rally. Such a breakout could signal renewed investor confidence and increased capital inflow into altcoins.

Related: The ‘Longest Ever’ Bullish Sign Just Appeared on Altcoin Charts

With the 18-month upswing already in motion and the RSI breakout signaling increased momentum, the TOTAL3 index appears well-positioned for a sustained move upward. As the target for this breakout sits at $1.75T, traders and investors are now observing closely for the continuation of this bullish pattern. A confirmed breakout above this key level would likely trigger the next major rally phase for altcoins.