Altseason outlook is starting to build as ALTSZN consolidates close to support following a rally while altcoin cycles and increased volumes indicate the possibility of rotation taking place. Traders are eyeing key resistances ahead of any momentum.
Key Insights
- There has been consolidation close to support for ALTSZN following a small rally, with resistance currently testing $0.00520.
- Altseason cycles have always followed accumulation of OTHERS/BTC.
- No altseason signal yet, even as traders expect rotation.
Altseason Outlook Is Becoming Popular Amid the Consolidation in Market Structure
The altseason outlook has received considerable popularity as the structure of ALTSZN has consolidated in the wake of a previous uptrend. Having undergone a short-term rally, the token seems to be consolidating, meaning that there is tight action within the range bounded by the existing level of support and resistance. This pattern may be regarded as evidence of market indecision and hesitation in terms of further price movement.
At the moment, the token is changing hands at close proximity to its bottom level, with support ranging from $0.00460 to $0.00465. Resistance has shown its existence near $0.00485 and $0.00515 to $0.00520, and each attempt to reach above this level failed due to selling activity.
Altcoin Season Rotation Theory Gaining Momentum From the Larger Picture
While ALTSZN price performance alone supports the theory of an upcoming rotation season for altcoins, the broader picture of the market is another supporting factor. The OTHERS/BTC ratio continues to draw attention due to its similarities with trends observed during previous cycles in the market history.
Historically, a period of dominance of one asset tends to lead to a massive run-up in other coins once the capital is rotated away from that coin into other alternatives. This is something that analysts, who use data from past market cycles, point out when they describe two main phases, Altseason 1 (2017-2018) and Altseason 2 (2020-2021).
According to analysts' observations, both events featured a long consolidation phase before massive bull runs in alternative coins took place. Once the rotation started, the price of other cryptocurrencies skyrocketed. Now the market structure implies that we might be observing a similar consolidation phase with the same future upside expectations.
Consolidation of ALTSZN Is Due to Indecisiveness of the Market Participants
In terms of micro-analysis, one can see how ALTSZN is undergoing a regular consolidation process following a rally. In particular, after rising from the levels of $0.00445, the token managed to test the resistance at $0.00480 but could not push its way beyond it. Instead, this resulted in range-bound behavior, where price failed to make any gains above $0.00520.
So far, the price has not been able to continue rising due to selling pressure near the said resistance. On the other hand, price correction to lower levels has also been held back by buying pressure coming from around the support area of $0.00460 to $0.00465.
Market Outlook: Confirmation Still Needed
At this point in time, the general outlook for altseason is still unclear. Even as certain parallels exist from other cycles in the past, there is yet to be any definite breakthrough in terms of an altseason rotation. It is currently left to be seen if ALTSZN can break its way to higher resistances, or if the cycle of consolidation continues until another accumulation phase emerges. The prevailing attitude is still cautious, as more confirmation needs to be made first.
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