Altcoin Market Cap Retests Long-Term Trendline as Traders Watch for a Recovery Signal

TOTAL3 retests its key ascending trendline after a pullback from the $1.16T resistance.

Altcoin sentiment remains mixed as traders weigh volatility and volume changes.

A bounce from this support could set the stage for renewed bullish movement.

The altcoin market is again nearing one of the crucial points. Following a sharp pullback, its overall capitalization, without Bitcoin and Ethereum, has gone back to a familiar support level that has historically triggered rebounds and general recovery energy.

Altcoin Market Cap Near Key Support Zone

The TOTAL3 index, which measures the market capitalization of all cryptocurrencies apart from Bitcoin and Ethereum, is currently testing a crucial support level. As seen in the chart shared by CryptoPulse, the market is revisiting an ascending trendline that has guided its growth since early 2024.

Source: CryptoPulse_CRU

As of writing, TOTAL3 sits near $903 billion, following a retreat from the $1.16 trillion resistance that has capped upward moves for more than a year. Each rally to this neckline attracted selling pressure, the result of which was temporary corrections. Each time, however, the long-term trendline had caught the decline, thereby preventing further damage to the broader upside structure of the market.

This point is significant on the chart for both technical and psychological reasons. If the support holds, it would reaffirm buyers’ confidence and could attract renewed capital inflows into altcoins. Historically, rebounds from this zone have triggered weeks of recovery phases, especially among mid- and small-cap tokens that often outperform during risk-on conditions.

Market Behavior Reflects a Balancing Act

The current setup resembles a textbook ascending channel: steady higher lows meeting resistance around the same ceiling. The pattern of this kind is usually an indication of persistent consolidation below the resistance level prior to a breakout. This base has been the mainstay of the altcoins’ strength since early 2024 and it has endured several shakeouts.

CryptoPulse notes that the ongoing retest could define the next few months of altcoin market structure. The $900 billion zone now represents a balance between cautious optimism and fading momentum. If buyers manage to defend this region, the longer-term bullish formation would stay intact. A breakdown, however, could shift attention toward the $800 billion range — the next strong demand zone on historical charts.

The trading activity also presents a mixed picture. Volume has remained stable, but trading is still by short-term traders and not by long-term investors. This would signify that the market is awaiting a definite technical indicator before they make a larger movement.

What’s Next for the Altcoin Market

Should TOTAL3 bounce off this support area, the next target remains the resistance level around $1.16 trillion. A higher retest and breakout would be an indication that more investor confidence is beginning to settle in, and the liquidity is increasingly being rotated to altcoins. In the past, such breakouts have been observed when Bitcoin dominance had been diminishing and capital was able to flow to smaller projects.

Should the bounce fail we may obtain further correction in the market. At that, traders may observe an additional consolidation period when liquidity is repriced and the atmosphere is restored. These pullbacks have however offered points of entry in the past by strategic buyers who consider the long term structure still there.

As long as it can be seen, the altcoin market remains at a significant crossroad. Whether the next stage will result in a new wave of vigor or another wave of indecisiveness will be determined by the strength behind this upward trendline. The traders and investors will probably continue closely looking at the forthcoming weekly closes in order to ascertain direction.

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