Altcoin Market Shows Signs of Reversal as Wedge Breakout Sparks Speculation

The crypto market has been experiencing a prolonged downtrend for several years, but there are signs that this trend may be weakening. A wedge breakout pattern, which formed since the market peak in 2021, has been broken by altcoins, with analysts pointing to this as a reversal signal.

According to analyst Mark Chadwick, the total combined market cap of altcoins minus Bitcoin (TOTAL2 chart) is showing signs of recovery. The MACD indicator is approaching a bullish crossover, which would mirror a similar setup in 2020 that triggered a major altcoin rally.

The recent price gains of several altcoins, including Zcash (ZEC), LayerZero (ZRO), Ethena (ENA), and Arbitrum (ARB), are also fueling speculation of an upcoming rally. These coins saw their prices rise by more than 10% in the last 24 hours.