The overall cryptocurrency market capitalization (TOTALCAP) may have reached a short-term low. A breach from the current declining resistance line would confirm this.
TOTALCAP has been declining since hitting an all-time high of $2.96 Trillion (Tn) on November 10th, according to the weekly data. Notably, On December 4, the fall came to an end with a low of $1.92 Tn.
Additionally, TOTALCAP bounced after that, leaving a long lower wick in place.
Furthermore, The wick was also formed within the $1.85 – $2.07 Tn support range, which was generated by the 0.5-0.618 Fib retracement support level.
More so, Technical indicators, on the other hand, suggest a neutral view.
Then, The MACD, which is made up of a short and long-term moving average (MA), is decreasing but still positive. This means that, despite the fact that the short-term MA is slowing, it is still quicker than the long-term MA.
Furthermore, The RSI is also lowering, but it is still above 50. Also, The RSI is a momentum indicator, and moves above or below 50 indicate a bullish or bearish trend.
Additionally, @AltstreetBet, a cryptocurrency trader, tweeted a TOTALCAP chart, predicting a rise to $2.6 trillion.
More so, The daily chart, on the other hand, shows a more bullish view. The bullish divergence in both the RSI and the MACD reflects this. This is a common occurrence prior to bullish trend reversals.
As a result, it’s possible that an upward trend will emerge.
Also, A sinking resistance line and a horizontal resistance region have produced resistance at $2.37 Tn.
Lastly, The next horizontal resistance level would be at $2.63 if TOTALCAP is able to break out from the resistance line.
Related Posts – Bank DBS’s Crypto Business Grows Massively Due To Growing Demand From Investors
