TOTAL3 Analysis for Sunday, January 5, 2025
Hope everyone is having a nice Sunday! Let’s take a look at the TOTAL3 chart (crypto market cap excluding BTC and ETH).
In my view, things look much better than on January 1. Here’s why:
1. In recent days, price managed to flip the first resistance level at approximately 1.00T into support. This is an encouraging sign, as it shows buyers are stepping in to defend this level.
2. The trend-following system flipped green around this price zone, which aligns with the bullish support flip. This gives additional confidence in the momentum shift.
3. The next key level to watch is the resistance at 1.16T. A strong break above this level could pave the way for a larger rally. On the downside, support remains at 1.03T, with more significant levels near the 200-day moving average and Fibonacci retracements around the 940B to 865B region.
4. Volume is improving, which supports the recent upward movement. The MA Ribbon is also upward, further suggesting a possible trend reversal.
In my view, if the market can maintain its position above 1.00T and eventually reclaim 1.16T, we could see sustained upside for altcoins. However, it’s important to stay cautious, as the market may still retest support levels during this early phase of recovery.
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