Most crypto assets are subdued on Wednesday. The crypto market could be waiting for a price explosion, and it could happen as early as this week or next.
Total3 major breakout approaching
Source: TradingView
Total3 is the chart of the combined market cap of all cryptocurrencies, excluding $BTC and $ETH. Therefore, it is a good chart for measuring the performance of the altcoins as a whole.
As can be seen in the chart, Total3 broke out from the triangle and is currently looking as though it may confirm above the first resistance at $1.05 trillion. This horizontal resistance goes back to the tops of the weekly candles in the 2021 bull market. The second horizontal resistance is at $1.13 trillion. Here, the resistance is even more defined, and is taken from the very top of the 2021 bull market, and also from 3 touches following price action over the last few weeks.
Breaking through the second of these resistances, and confirming with a weekly candle opening above, would be the signal for the start of the next leg higher.
Bitcoin Dominance still refuses to break down
Source: TradingView
All this said, the Bitcoin Dominance chart (BTC.D) is showing that dominance is still refusing to break down. Even after printing two candle bodies closing below the channel trendline, dominance has managed to fight its way back inside the channel, and is currently looking to confirm above the small descending trendline that comes down from the top of the channel. Altcoin bulls will need to watch this very closely.
Inverse cup and handle for USDT Dominance?
Source: TradingView
Nevertheless, the chart for USDT Dominance (USDT.D) is displaying an inverse cup and handle pattern. This would be expected to break to the downside from here, thereby signalling strength in the entire crypto market. This pattern does need to break down and confirm first though.
$SOL front-runs the altcoin majors
Source: TradingView
Finally, one major altcoin is perhaps frontrunning this next potential wave to the upside, and that is $SOL. Last week the $SOL bulls pushed this massive layer 1 to an all-time high of $295. As can be seen in the chart, with the long wicks both up and down, there has been plenty of volatility over these last two weeks.
However, putting the candle wicks to one side, this week’s candle body opened above the major level of $252. If this week’s candle body can confirm above this level, this is likely to be the new bull market support. The next major target, according to the 1.618 Fibonacci level, is at $415.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.