According to crypto analyst Rekt Capital, the overall altcoin market cap appears to be retesting an important support level that could lead to a significant rally if held. With the market cap bouncing from the red resistance zone in the chart below, Rekt Capital notes that this crucial area needs to flip to support for upside to continue.
In the first tweet, Rekt Capital points out that the altcoin market cap is about to close the weekly candle above the noted resistance in the chart. He notes that historically, weekly closes above resistance levels lead to rallies afterward. In this case, it could fuel a rally of at least 14% or more for the altcoin market cap.
In the second tweet, Rekt Capital highlights how the altcoin market cap is currently retesting the broken resistance level on the daily timeframe after an initial bounce. He notes that this resistance area needs to flip to support through a successful retest. Holding it as support would confirm it as a new higher low and springboard leading to more upside for altcoins.
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In summary, the key takeaways are that the altcoin market cap has broken above resistance on the weekly but needs to hold as support on the daily. If this crucial area is maintained on the retest, Rekt Capital expects it could drive a rally of 14% or more across the altmarkets in the near future. The analysis indicates altcoins are showing signs of strength but need to confirm support before the next surge higher.
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