Signs of a "Trend Reversal" in Altcoins: Will Prices Continue to Rise in the Coming Months?

Recent analysis by Moustache, a well-known cryptocurrency analyst, suggests that altcoins are showing signs of a trend reversal.

After breaking out of a 9-month downward wedge, could altcoin prices be set for a sustained rise? Explore the factors behind this potential market shift and what to expect in the coming weeks.

Breaking Out of a 9-Month Downward Wedge

Moustache (@el_crypto_prof), a cryptocurrency analyst with over 130,000 followers on X (formerly Twitter), has been predicting an "altcoin price rise" in his recent posts. On the 9th of this month, he reported that "altcoins have broken out of a significant downward trend."

The chart image shared in the post shows the dominance of altcoins, excluding the top 10 cryptocurrencies by market cap, declining from December 2023 to September 2024.

This chart helps gauge the growth and influence of altcoins in the market, with Moustache explaining that "breaking out of the downward wedge that lasted for 9 months is a critical sign."

In his post, Moustache highlights the emergence of a bullish pattern that suggests a trend reversal and price increase for altcoins. He believes that the market could see "positive movement in the altcoin market for the next few weeks to months."

While altcoins seem to be in the early stages of a trend reversal, if they can break through the neckline indicated in the chart, the expectation of a price surge will grow stronger, possibly signaling the beginning of a full-fledged altcoin season.

RSI Breakthrough: A Signal for Price Explosion?

In his post on the 9th, Moustache also pointed out that "the current altcoin chart is very similar to the 2016/2017 chart," predicting that "fireworks will start once the RSI (*1) breaks through the downward trend."

(*1) RSI (Relative Strength Index): An indicator used to determine whether an asset is overbought or oversold (shown at the bottom of the shared chart).

Many cryptocurrency price predictions point toward a price increase towards the end of the year. Another analyst has suggested that "Bitcoin prices could rise for three consecutive months."

At the end of last month, some very bullish views were shared, including claims that "now is the time to buy altcoins, even if it means selling your house." The future movements in cryptocurrency prices are being watched closely.

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