With cryptocurrency traders closely watching three technical indicators for confirmation, it is said that the altcoin market is currently in a ‘stage of disbelief’ and could soon move into an ‘explosive rally’ if history repeats itself.
“Altcoin market caps are currently in a phase of distrust and have historically seen explosive gains,” cryptocurrency analyst Milkybull crypto told his 66,600 X followers in a May 11 post.
The distrust stage is where investors remain skeptical despite positive market signs, as evidenced by the significant 24-point drop in the Fear and Greed Index over the past 30 days. The current ‘Greed’ score is 56 points.
This comes with the total altcoin market capitalization excluding the top 10 cryptocurrencies falling 17.55% over the past 30 days to $264.9 billion (based on TradingView data).
Rekt Capital, a pseudonymous cryptocurrency trader, told his 465,300 X followers in a post on May 12 that support levels remain above $250 billion and “we are positioning ourselves for further upside.”
Traders are watching three indicators across the broader cryptocurrency market to support their predictions about the direction of the altcoin market: the 20-day exponential moving average (EMA), stochastic RSI, and Bitcoin dominance.
EMA is the average price over that period, with greater weighting given to recent periods. This could lead to a “rally time” if the overall cryptocurrency market cap “retests” the EMA20 while “crossing the strength” of the Stochastic RSI, which measures the relative strength and weakness of the RSI indicator itself, said anonymous cryptocurrency trader Titan of Crypto. says: Announced on May 11th post.
Related: Altcoins will bottom in early summer before bull market — analyst
The Bitcoin Dominance chart, which measures Bitcoin’s market share relative to the overall cryptocurrency market, is one of the oldest yet most referenced indicators. This can provide traders with the overall sentiment and risk appetite of the market.
Bitcoin’s dominance at the time of publication was 54.7%, down 0.56% over the past week. On May 11, anonymous technical analyst Yoddha claimed, “Any further decline from here could trigger a fallback season.” post At X.
magazine: Buy altcoins now, but sell them before ‘mid-2025’: Charles Edwards, X Hall of Flame
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.