Altcoins Under Pressure
From a technical standpoint, I see the market forming a clear downward structure. After repeated attempts to push higher, the price was rejected at key resistance levels—suggesting that sellers remain firmly in control. The developing Head & Shoulders pattern further supports this bearish view, as a decisive break below the neckline would likely confirm additional downside.
Adding to this technical picture, the macroeconomic landscape in the United States remains unfavorable for risk assets. Inflation risks are prompting the Federal Reserve to stay hawkish on interest rate decisions, which typically encourages capital outflows from equities and cryptocurrencies. On top of that, the U.S. Dollar Index (DXY) continues to climb, reflecting a stronger dollar environment. When the dollar gains strength, investors often pull away from higher-risk markets like altcoins, reinforcing the downward pressure.
As a result, I expect that the downward momentum in the TOTAL3 index—representing altcoins—will continue. If the neckline of the Head & Shoulders pattern is broken with conviction, the price could move down to test the next key support areas, likely around the major Fibonacci retracement levels. In my view, this technical setup, combined with ongoing dollar strength and Fed policy concerns, points to further downside ahead.
Disclaimer: This analysis is provided for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your individual risk tolerance before making any investment decisions.
Adding to this technical picture, the macroeconomic landscape in the United States remains unfavorable for risk assets. Inflation risks are prompting the Federal Reserve to stay hawkish on interest rate decisions, which typically encourages capital outflows from equities and cryptocurrencies. On top of that, the U.S. Dollar Index (DXY) continues to climb, reflecting a stronger dollar environment. When the dollar gains strength, investors often pull away from higher-risk markets like altcoins, reinforcing the downward pressure.
As a result, I expect that the downward momentum in the TOTAL3 index—representing altcoins—will continue. If the neckline of the Head & Shoulders pattern is broken with conviction, the price could move down to test the next key support areas, likely around the major Fibonacci retracement levels. In my view, this technical setup, combined with ongoing dollar strength and Fed policy concerns, points to further downside ahead.
Disclaimer: This analysis is provided for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your individual risk tolerance before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.