Ethereum, Dogecoin Signal First Bullish Trend Reversal in 2 Years
Ether is leading a resurgent altcoins market but is this the start of a new altcoin bull cycle?
When the Binance ban for users in the United States was first announced a few months ago, the market feared that significant volume and money would exit.
Interestingly enough, as the launch of Binance America nears, altcoins are suddenly starting to move upwards with decent volume. Sell the rumor, buy the news.
Cryptocurrency market 7-day performance. Source: Coin360
It’s not only Ether (ETH) making significant gains upwards after bouncing from $170 either.
Other altcoins are also currently outperforming Bitcoin (BTC). Stellar Lumens (XLM) is up 42% from its recent bottom, while Ripple (XRP) showed some promising signs with a 29% daily move as well in the past week.
So is this the moment when altcoins start a new “altseason” bull cycle? Let’s look at the charts.
Total market capitalization
The total market capitalization is showing an essential bounce at the previous resistance area of $65-68 billion.
Total crypto market cap excluding Bitcoin. Source: Tradingview
Comparing this to the famous “Wall Street cheat sheet,” and it starts to look like a standard bear trap.
The altcoin market needed this bounce from the old resistance for potential further upwards movements and the continuation towards the “disbelief” phase.
Not only can it be concluded that this support/resistance flip was essential, but it is also the first notable trend shift for the first time in 2 years. This can be defined through higher lows and higher highs, starting from the bottom in December 2018.
The next goal for altcoins is to break the resistance area at around $125 billion to maintain upwards momentum.
Ether the indicator?
Interestingly enough, the chart for Ethereum’s native token Ether is identical to the altcoin market capitalization chart as it mirrored the same bounce.