Short Relief Bounce For Altcoins? If Crypto Marketcap Can Do This

  • As price moves up in a short-term recovery, cryptocurrency could see a break from its downtrend and create more bullish sentiments for altcoins.
  • Both low- and high-frequency timeframes show strong cryptocurrency market capitalization. 
  • After forming a downward triangle, the cryptocurrency market capitalization is ready for a breakout.

It was difficult for the Crypto Marketcap to regain its popularity when it reached its maximum of $2.8 trillion. Most crypto assets were performing well. There are many factors that influence the performance of crypto assets. Capitalization of crypto markets also called the crypto market cap, takes in market data from a range of cryptocurrencies — including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and EOSIO network (EOS) — to provide a fuller, real-time picture of how the crypto asset sector is performing.

The Weekly Chart: Crypto Market Capitalization Analysis

Source: On Tradingview.com| Source: On Tradingview.com

For most cryptocurrency projects, the month of January has brought relief. Altcoins, such as BTC, ETH and even XRP continue to look good ahead of a significant rally.  

As the market enjoyed a tremendous rally, reaching an all time high of more than $2.9 trillion, it had a positive impact on the value of altcoins.

It fell to $2.9 trillion after reaching that market capitalization. This was either resistance or an over-inflated top, as it struggles with regain its form. The crypto market saw a massive sell-off, with the price falling to $774 billion.

After rebounding from the weekly low of $774billion, the market cap climbed to $1.17. However, it faced resistance in breaking out of this area. The price then retraced back to $850 billion. This was due to the fact that the price had formed a support zone and what appeared to be an important demand zone for market buy orders.

The crypto market’s price has been declining as the prices rise, although there have been some signs of relief.

Weekly resistance for the price of crypto market cap – $1.2T.

Weekly support for the price of crypto market cap – $850T.

Crypto Marketcap Analysis of REN on the Daily (1D), Chart

Source: On Tradingview.com| Source: On Tradingview.com

Daily timeframe: The crypto market price is bullish. Support at $850 billion (850B) remains as price range. 

The market cap for crypto is $930B. After breaking the resistance, the price holds above the Exponential Moving Averages of 8 and 20 Days (EMA). 

We could see relief rallies in all crypto assets if the market cap does not change.

Daily resistance for the crypto market cap price – $1.2 Trillion

Daily support for the crypto market cap price – $850 Billion.

Featured image from zipmex. Charts from Tradingview 

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