Altcoin Market Cap Signals Major Bottom Formation

• Crypto analyst Moustache recently shared his view that the altcoin market cap (TOTAL3)—everything except Bitcoin and Ethereum—might be bottoming out after a long correction. His technical analysis shows two bullish signals lining up: a two-year RSI pattern indicating weakening selling pressure and a one-year ascending triangle now testing its support line.

• TOTAL3 is sitting at a critical support zone. He acknowledged the current choppy conditions, saying “it’s not easy at the moment,” but believes the near-term pain will be worth it. The main risk? If the trendline breaks, we could see a deeper pullback across altcoins.

• If support holds, analysts expect mid-cap and DeFi projects to lead a recovery, potentially pushing total altcoin market cap past the $1.4 trillion resistance. If not, we might see money flow back into Bitcoin before the next alt season kicks off.

As put it: I think TOTAL3 is very close to a bottom. -2-year monster pattern (RSI). -1-year ascending triangle reaches the lower trend line. Yes, it’s not easy at the moment, but what comes after will overshadow much of the bad PA that have happened in the past.

• This setup looks similar to pre-breakout patterns from past cycles, especially before the 2020 altcoin rally. Historical RSI reversals from these levels have often marked the start of multi-month runs. If this plays out, altcoins could be gearing up for growth as macro uncertainty fades and blockchain adoption picks up.