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Altcoin Indicator 'Has Changed To Green,' Says Analyst: 70% Higher Is 'First Real Target'

Published 06/02/2024, 22:07
Updated 06/02/2024, 23:10
© Reuters. Altcoin Indicator 'Has Changed To Green,' Says Analyst: 70% Higher Is 'First Real Target'
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Benzinga - Cryptocurrency trader and analyst Moustache indicated the technical altcoin chart has changed to green, signaling a 70% potential upside.

What Happened: The analyst noted the Gaussian channel, which changed to green in 2016 and 2020, has historically provided a positive signal for altcoins.

In a separate tweet, he pointed out altcoins have broken out of a Falling Wedge that has been in place for more than two years. He stated, “What's happening now is called bullish consolidation. The first real target is 70% higher from here.”

The Gaussian channel is a three distinct bands indicator. Whenever the price enters this channel from either the upper or lower boundary, it serves as a potential indicator of an impending price reversal.

Also Read: Chainlink Pops 13%: 'Primed For Further Gains,' Says Crypto Analyst, But 'Significant Resistance Level At $20'

Why It Matters: While the spot Bitcoin ETF approval did not lead to the expected Bitcoin price rally, altcoins have garnered significant attention.

Crypto analyst, CEO and founder of MN Trading Consultancy Michaël van de Poppe saw consolidation in the total market cap of crypto. He tweeted, “Very likely that we'll see a continuation from here, the momentum and trend are extremely strong. Continuation towards $2.2T coming from #Altcoins.”

What’s Next: Crypto trader and analyst Rekt Capital noted the continued strong performance of coins such as Solana (CRYPTO: SOL) and Chainlink (CRYPTO: LINK) from the fourth quarter altcoin hype cycle of 2023: “Market may be gearing up for a Q1 Altcoin Hype Cycle.”

Additionally, crypto investor, Jelle outlined four stages for the altcoin market cap: accumulation, breakout, post-breakout consolidation and liftoff. “It looks like we are currently in stage 3 (consolidation).”

With Bitcoin and Ethereum stalling post-ETF approval, the recent memecoin frenzy has prompted traders to seek quick profits and outsized gains elsewhere.

Read Next: Report Outlines How To Trade Today's Altcoin Market: 'SOL Will Be Our Main Focus'

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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