The altcoin market cap is currently facing a significant resistance level at $425 billion, but according to a prominent crypto analyst, this barrier may soon be broken. In a recent strategy session, Rekt Capital, a well-known crypto trader with a large following on X, shared his insights on the altcoin market’s potential for a massive recovery.
Rekt Capital pointed out that the retracement of the OTHERS chart, which represents the total crypto market cap excluding the top ten coins, from the $425 billion level is not as deep as previous breakdowns. This indicates that there is a strong possibility for the alt market cap to turn this resistance level into support.
The analyst emphasized, “Altcoin market cap has indeed rejected from $425 billion resistance. Altcoin market cap has retraced substantially since. However, this is altcoin market cap’s way of producing a shallower retrace to show how $425 billion is weakening as a point of rejection.”
He further stated that the shallower retracement could provide the altcoin market cap with the momentum needed to reach new local highs. Rekt Capital explained, “Since rejecting from $425 billion resistance, altcoin market cap has retraced -51%. This is still shallower compared to the previous rejections from around $425 billion resistance. Should altcoin market cap bottom in the near future, then it will have an easier time breaking beyond the weakened $425 billion resistance over time.”
Currently, the OTHERS chart stands at $271.27 billion, indicating potential for growth. In addition to his analysis of the altcoin market, Rekt Capital also provided an update on Bitcoin (BTC). He predicted that Bitcoin will likely trade sideways in the near term on the weekly chart, consolidating between $98,300 and $101,000.
Bitcoin is currently trading at $96,860, experiencing a 1.1% decrease in the last 24 hours. As the crypto market continues to evolve, it will be interesting to see how these predictions play out and whether the altcoin market cap can break through the $425 billion resistance level.
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