Altcoin market decline signals a potential rebound, with key indicators suggesting a breakout is on the horizon - IcoHolder.
For the past eleven weeks, the altcoin market has remained in a state of decline, leading many to question whether enthusiasm has shifted permanently to Bitcoin. Some fear that the explosive gains of past cycles may never return. However, a closer look at market indicators suggests that this may be a crucial reset rather than a sign of lasting stagnation.
A crucial signal has emerged from Total3, the chart that tracks the combined market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum. A recent price wick nearly touched the 0.618 Fibonacci retracement level, effectively confirming the top of the bull flag that extended from March to September 2024. If this pattern holds, the latest price action could be forming yet another bull flag—a setup often associated with strong upside potential.
Further reinforcing the bullish case, the weekly Stochastic RSI is now in the oversold zone, indicating that altcoins may be nearing a turning point. Historically, this indicator only reaches such levels a couple of times per year, making it a rare but potentially powerful buy signal.
While it’s possible that the market could consolidate at these levels for a prolonged period, this would allow the 2-week Stochastic RSI to also bottom out, potentially creating a major catalyst for an upward move. If both timeframes align, they could generate significant momentum, fueling a substantial rally across altcoins.
With altcoins battered but key indicators aligning, the stage may be set for a significant breakout. While uncertainty remains, traders and investors are closely watching whether this technical setup will translate into a sharp recovery. If history repeats itself, the next leg up could be one of the biggest moves of this market cycle.
