The Future of the Declining Altcoin Market

Prerna Sengupta
Prerna Sengupta is a writer for Thecoinrepublic. She is a law student at NALSAR University of Law, Hyderabad. She is interested in Tech Law and is especially keen on cryptocurrency, blockchain, and Bitcoin. She hopes to pursue this field in the future as a lawyer.

The Future of the Declining Altcoin Market

  • On November 25, the altcoin market cap reached a lower low than September 24, which rendered the entire upward movement useless.
  • The market, as a whole, has been on a downward trend since the end of May.
  • Analyst Lomah Crypto has suggested that altcoins may not be a very profitable venture anymore and that it is highly unlikely to perform better in the future because the market has approached a strong resistance.

The upward movement of the total altcoin market cap began on September 24th.  This upward movement had many calling for a period in which altcoins would increase a lot because it was being done during a Bitcoin price decrease. However, on November 25, the altcoin market cap reached a lower low than September 24, which rendered the entire upward movement useless.

There have been individual altcoins that have increased almost daily, like Ravencoin, which has increased by 19%. However, the market, as a whole, has been on a downward trend since the end of May.

Analyst Lomah Crypto has suggested that altcoins may not be a very profitable venture anymore and that it is highly unlikely to perform better in the future because the market has approached a strong resistance.  This is an unprecedented outcome because, earlier this year, a majority of the online cryptocurrency community had been expecting another season.

The current movement is a retracement in reaction to the upward move beginning in December 2018. The altcoin market cap has created a solid support area at  $60 billion, which is reinforced by the 0.786 fib level. The total market cap has to stay above the support area and soon start an upward move to regain traction. However, there is no bullish divergence to suggest that this will happen.

A descending wedge can be seen in the concise term market movement. Additionally, there is a bullish divergence in both the RSI and the MACD, which suggests that a breakout might happen. However, it cannot be predicted whether this movement will cause the total market cap to move above the previously broken ascending support line. This seems unlikely due to the bearish medium-to-long-term outlook.

In conclusion, the altcoin market cap has broken down below a support line and justified it as resistance. An upward movement may occur due to the low time-frames, but it is still unclear whether this move will invalidate the previous breakdown.

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