Altcoin season hopes dashed by $125 million liquidations?

Altcoin (TOTAL2) market cap has fallen sharply this week, losing most of the gains from its predecessor.

Despite this decline, its ascending structure remains intact on the horizontal and diagonal levels. Will TOTAL2 be able to pick up its momentum and spark hope again for another alternate season?

Altcoin season is faltering in the first way

It appears that the recent bullish rally has stalled. Recent market conditions have seen bitcoin reach a new yearly high, along with ethereum, along with gains across the board on the altcoins. Indicating the start of a possible altcoin season as Bitcoin calms down. However, sharp corrections across the board saw more than $124 million in divestitures. Could this have a greater impact on a potential altcoin rally?

24-hour digital currency liquidation. source: Coinglass

Altcoin market capitalization increased sharply during the week of April 10-17. While doing so, it confirmed the breakout from the long-term descending resistance line that has been in place since the all-time high, and the $605B horizontal resistance area.

While TOTAL2 was trading below these levels, the trend was considered bearish. However, after moving above it, it is likely that the bulls have regained the upper hand, and a new bullish reversal has started. The former resistance line and $605 area are now expected to provide support.

Cryptocurrency Market Cap Weekly Movement (TOTALCAP)
TOTAL2 daily chart. source: TradingView

Besides the price action, the weekly RSI also provides a bullish reading. An upward trend and a reading above 50 indicates that the bull market is continuing. The index moved above 50 at the beginning of March (green icon).

The Relative Strength Index (RSI) is a momentum indicator that assesses the speed and magnitude of recent changes in an asset’s prices, providing insights into overvalued or undervalued conditions. Traders make use of the RSI to make informed decisions about whether to buy or sell these assets, based on their assessment of the cryptocurrency’s price momentum.

If the increase continues, the next resistance is at $916 billion.

Technical analysis from the daily time frame corresponds to the weekly readings. The price is currently retesting the major horizontal support area, which is at $610B on the daily time frame.

Moreover, it is bouncing at the support line of an ascending parallel channel. When these channels contain price action, many touches of both resistance and support lines are expected.

Since the price is now trading above the center line of the channel, an increase towards the resistance line is expected. The average price of the channel resistance line is $720 billion.

Expect total price 2
TOTAL2 daily chart. source: TradingView

Despite these bullish readings, a close below the $605B support area could lead to a sharp decline towards the channel support line at $560B.

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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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