Altcoin Market Eyes Breakout As Weekly RSI Flips Bullish With No Divergence

Altcoin market respects the 2023 trendline with RSI flipping bullish at key levels.

MACD convergence signals wedge compression near the critical resistance zone.

Support zone holds as a structure and momentum point to a breakout decision.

The altcoin market, excluding Bitcoin and Ethereum, shows early signs of strength at major trendline support. Two multi-timeframe technical setups suggest continued bullish momentum heading into Q2 2025.

Weekly Structure Holds With RSI Reversal in Play

Altcoin market cap trades inside a rising channel structure that began forming in early 2023. Four successful support touches have occurred along the lower trendline, including the recent retest in early 2025. Price has respected this channel without breaking down, supporting long-term trend continuation.

Source: Moustache

Market analyst Moustache above provided a detailed technical analysis of this weekly chart structure. He noted that each yellow-highlighted circle marked a trendline bounce, triggering fresh upward legs. These consistent reactions confirmed dynamic support at this diagonal zone. The channel remains intact, bounded by parallel lines guiding both resistance and support. According to his view, this repeated trendline validation reinforces a bullish structure.

With RSI recovering from sub-40 levels, he emphasized the falling wedge breakout ot the altcoin as a pivotal development. The indicator formed a textbook bullish breakout, supported by a yellow circle marking the breakout level. Momentum shifted upward, with higher RSI lows forming for the first time since late 2024. Historical reactions aligned RSI reversals with trendline bounces, making this latest move statistically significant.

No divergence appears in the current RSI trend, and price continues to respect weekly support. Candle bodies show consolidation rather than rejection, implying ongoing accumulation. Previous structures like this produced rallies toward mid or upper channel resistance levels.

Wedge Pattern Meets MACD Convergence on Daily Frame

Daily chart behavior paints a clear descending broadening wedge forming since the late-2023 breakout. This structure slopes downward with increasing volatility, while price action remains inside the expanding pattern. A bullish candle recently tested upper resistance near a key green support zone.

That last retest near resistance zones forced him to reassess the bullish breakout thesis, and in his second breakdown, Moustache dissected the daily timeframe with a MACD-driven lens. The histogram bars continue to shrink, with MACD and signal lines converging just under the zero line. This behavior signals waning bearish momentum as price compresses inside the wedge apex.

The green support zone held firm during recent consolidation and corresponds to the original breakout zone from late 2023. Short-term structure shows compression toward a decision point, with both price and MACD aligning near a key inflection level. The setup mirrors historical pre-breakout conditions. With price supported structurally and momentum no longer fading, the altcoin market appears poised for resolution.