Altcoin Marketcap Out of Bear Market Accumulation Phase
The cryptocurrency market has been experiencing a downward correction, and Bitcoin’s lack of momentum has contributed to this trend. Grayscale unloading its Bitcoin assets further exacerbated the market’s decline. However, there has been some stability over the weekend, with Bitcoin trying to maintain its position above $40,000. A crypto analyst pointed out an important development in the altcoin sector.
“The Altcoin Markecap is out of the Wyckoff’s bear market Accumulation phase. According to this pattern, the current consolidation should be the final sideways choppy price action before Alts go parabolic.”
If this theory holds true, altcoins like Solana (SOL), Graph (GRT), and Chiliz (CHZ) could present a lucrative opportunity for bullish traders to acquire these coins at a discount.
Chart Pattern Hints Bottom Formation for Solana (SOL) Price
Solana, currently the fifth-largest cryptocurrency, has experienced a downturn in the volatile crypto market. However, there is a bullish reversal pattern known as a ‘cup and handle’ forming on the daily chart. This pattern indicates investor accumulation at lower prices and suggests a potential rebound from the current support level of $85. If this pattern continues, the price could increase by 36% to reach the $125 resistance level. A successful breach of this resistance could signal a major trend reversal with a potential 103% increase to around $255.
Graph (GRT) Price At a Make-or-Break Scenario
Graph coin (GRT) is showing signs of a bearish reversal pattern called a head and shoulders. The price has declined significantly over the past three weeks, but it experienced a modest rebound over the weekend. If GRT fails to sustain this bullish momentum and consolidates below the neckline support, there is a risk of further decline. In such a scenario, the price could breach the 50% Fibonacci retracement level and potentially drop towards $0.076. However, if the bullish reversal continues and overcomes the downward-sloping trendline, it could initiate a rally back to the previous high of $0.225.
Renewed Recovery in Chiliz (CHZ) Price Set Beyond $0.13
Chiliz (CHZ) has successfully broken out from a ‘cup and handle’ pattern’s neckline resistance. Despite a mid-week sell-off in the market, CHZ has reclaimed its position and is showing strong buyer conviction. The price has seen an impressive intraday increase, forming a long bullish engulfing candle on the daily chart. If CHZ can maintain this upward trajectory and hold above the neckline resistance, it opens up potential further growth with a target of $0.135, representing a 30% increase.
Hot Take: Altcoins Present Buying Opportunities Amidst Market Correction
The altcoin market has shown signs of stability amidst Bitcoin’s lackluster performance. As the altcoin marketcap moves out of the bear market accumulation phase, there is anticipation for a parabolic rise in altcoins. This presents an opportunity for bullish traders to acquire altcoins like Solana (SOL), Graph (GRT), and Chiliz (CHZ) at discounted prices. The formation of bullish reversal patterns on their respective charts indicates potential price increases in the near future. However, it’s important to closely monitor market conditions and conduct thorough research before making any investment decisions.
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