The Cup and Handle in TOTAL3 and the Potential BullRun AheadThe Crypto Total Market Cap Excluding BTC and ETH ( CRYPTOCAP:TOTAL3 ) chart shows a clear Cup and Handle pattern that spans from early 2022 to mid-2024. This pattern is a classic bullish continuation signal often seen in traditional markets and crypto alike, hinting at a potential upward breakout.
1- Cup Formation:
The cup forms over a long period, starting with the steep decline from the 2022 peak, followed by a gradual bottoming process through 2023. The rounded base structure indicates a shift in market sentiment from bearish to bullish, reflecting a slow accumulation phase.
This formation is characterized by two sharp peaks: the first in mid-2022 and the second in mid-2024. The smooth curve indicates strong support at lower levels, where buying pressure gradually increased, forming the rounded bottom of the cup.
2- Handle Formation:
After reaching the resistance level around $782.155B, the market appears to enter a consolidation phase, forming the handle. This phase is depicted by the red descending channel, indicating a temporary pullback and profit-taking before the next move higher.
The handle suggests a minor correction, offering an opportunity for new buyers to enter before the expected breakout.
3- Breakout Potential:
If CRYPTOCAP:TOTAL3 breaks out above the $782.155B resistance level with strong volume, it would confirm the bullish reversal, potentially leading to significant upside momentum.
The dotted yellow line projects the possible future trajectory post-breakout, suggesting a rally toward new highs. The target for this breakout could potentially reach or exceed $1.3T, following the classical measured move of the cup and handle pattern.
4- Risk Consideration:
Although the cup and handle pattern is typically bullish, the handle's downward channel should be monitored closely. If the price fails to break above resistance and instead falls below the lower end of the handle, it may invalidate the pattern, leading to further downside.
Conclusion:
The current structure of the CRYPTOCAP:TOTAL3 chart points to a potential major bullish move if the handle plays out as expected. Traders should keep an eye on the $782.155B resistance level, as a breakout above this zone could signal the start of a new rally in the altcoin market. The cup and handle pattern, when confirmed, suggests that the crypto market could witness strong growth, with targets in the $1.3T range.
This analysis offers a roadmap for both short-term and long-term traders, emphasizing the importance of monitoring key technical levels in the unfolding pattern.
