Altcoin Market Cap Will Continue to Increase, Suggests Analyst

However, that has recently begun to change. Numerous altcoins, mostly Chinese based, have posted increased by up to 40%, likely resulting from an endorsement of blockchain technology by the Chinese government.

The altcoin market cap has been showing signs of life and has initiated a gradual upward move. The October 26 decrease looks more like a short-term correction than the beginning of a reversal.

Crypto analyst @paddystash stated that the altcoin market cap dominance has been gradually increasing after the sharp downward move of October 25-26, when Bitcoin enjoyed one of its biggest surges yet.

https://twitter.com/paddystash/status/1191346509331206150

He mentioned Ethereum’s short-term increase and the previous increases generated by Chinese coins.

How long will the altcoin market cap continue to increase? Let’s take a closer look.

Altcoin Dominance

Altcoin dominance has been decreasing since the beginning of 2018 when it was trading near 65%.

The decrease briefly stopped at 30%, and the price has been increasing since.

30% represents a minor support area, while there is a major support area at 23%.

Additionally, the market cap has made three higher lows, in September, October and November respectively, combined with a bullish cross of the 10- and 20-day moving averages (MA).

The price is trading above both, heading for the minor resistance area at 35%.

It looks as if the price will eventually get there and possibly move higher.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!