Total3 (Crypto Excluding BTC & ETH): Is the Bottom In or More Downturn Ahead?

Disclaimer: This is not financial advice. Please conduct your own research before making any trading decisions.

Total3, a market index that tracks the total value of all cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH), is currently sitting at $568 billion. This analysis explores what this price movement might mean for the future.

Liquidity and Support Levels:

Some analysts believe Total3 might be nearing a bottom. They point to the fact that the current price is close to the $511 billion level, which has acted as a support zone in both weekly and monthly charts. Additionally, in the monthly timeframe, Total3 is said to have filled any previous price gaps and imbalances, and is currently trading at the "monthly OB" (Order Block). This Order Block could be a potential resistance zone.

What Does This Mean?

The closeness to the support level and the filling of previous price gaps suggest that Total3 might be forming a near-term bottom. However, it's important to remember that reaching a support level or Order Block doesn't automatically guarantee a trend reversal. Confirmation signals are crucial before making any trades.

Market Uncertainty:

The overall market sentiment can significantly impact the altcoin market (represented by Total3). Predicting the future price movement with certainty is impossible.

Trading with Caution:

Given the uncertainties, a cautious approach is recommended. Wait for confirmation signals before entering any trades. This could be a clear break above the "monthly OB" with a strong surge in trading volume.