A new US presidency is undoing all the anti-crypto legislation of the old. Bitcoin is riding high above $105,000, and the altcoins are starting to break out. Is this the beginning of the final parabolic stage for crypto?
Total3 breakout about to happen?
Source: TradingView
Total3 is the chart of the combined market capitalisation of all cryptocurrencies, excluding $BTC and $ETH, so is a good guide to moves from the altcoins. As can be seen in the chart, the combined market cap looks as though it is about to break out.
The 0.786 Fibonacci for this latest move has been surpassed, and the price has consolidated above this, as well as above the wedge, which began to form in early December 2024. A breakout of the pennant, plus an eventual confirmation above the $1.13 trillion resistance is all that remains before Total3 can move into price discovery.
40-year descending trendline rejects the US dollar
Source: TradingView
One chart that signals the inverse of a bullish case for crypto is the Dollar Index (DXY). If the dollar is strong, this makes things more difficult for crypto, and vice versa. When Donald Trump came into office he said that he wanted to see interest rates fall, and a weaker dollar.
The chart above shows a rejection of the DXY from a downtrend that is 40 years in the making. Combine this with strong horizontal resistance, and you have an almost impenetrable wall. As the dollar falls further during the Trump administration, expect the crypto market to make hay.
$SOL one of the first altcoins to enter price discovery
Source: TradingView
Of all the major altcoins, Solana (SOL) is the one that is leading the rest of the field into what could be the last, exciting stage of the bull market. Currently holding above the major resistance at $252, the bulls will want to see the price above this level at the end of this week.
If this is the case, with major upward price momentum being signalled by the Stochastic RSI at the bottom of the chart, price discovery awaits. An inspirational target is the 1.618 Fibonacci at $416. Although, higher prices than this are very possible.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
