As 2023 comes to an end, Bitcoin maintains its strength above the $44,000 level, setting the stage for a positive end to the year. This uptrend is also affecting the altcoin sector, where several altcoins have broken their monthly resistances. Additionally, meme coins have experienced a solid increase in recent days. According to analyst Shayan Chowdhury, coins such as Bonk, Terra Luna Classic (LUNC) and Cardano have broken key resistance levels, indicating the potential for the trend to continue.
Altcoin market cap is above accumulation level
A technical analysis of the altcoin market cap shows a significant breakout from an accumulation range extending into 2022. The analysis showed that altcoins with a market cap of $723 billion on the chart are currently in a “retest” phase. If this phase follows the pattern of the last cycle, it could potentially trigger the next phase of significant growth in altcoin markets, often referred to as “altcoin season.”
The analysis suggests that the market value of altcoins could reach new highs, possibly exceeding $1.8 trillion in 2024. However, there is a possibility that this retest phase will not be successful and the market will enter the accumulation phase again. Such a development would invalidate the current analysis and could delay the expected altcoin season.
The first altcoin to watch: BONK
Over the last 30 days, BONK price has increased significantly by over 700% due to increased buying demand. Currently, momentum is in favor of buyers as they continue to make new highs despite rejections. The bulls are likely to push further and break the immediate resistance at $0.000015. Achieving this could lead to a significant increase in the Bonk price, potentially reaching a new high next week. On the other hand, a fall below the 20-day Exponential Moving Average (EMA) will indicate a profit-taking trend, so the decline will be faster than the rise.
LUNC analysis: there is bullish hope
LUNC price has recently triggered a correction mode, which could be a profitable opportunity to invest. Since the RSI is still holding above the midline at 65, there is hope for a reversal of the uptrend next week. The bulls will try to revive the upside momentum and if they defend $0.000126, they will send the price towards the key resistance at $0.00028. This price point could lead to strong selling efforts from bears. A breakout near support will strengthen selling pressure and confirm a bearish trend if buyers exit the market.
Cardano analysis: What’s next?
Cardano has been performing strongly since it broke the $0.40 resistance. Buyers pushed the price as high as $0.65 but were unable to continue advancing due to increasing bearish positions. The next notable resistance level to watch is $0.69. However, the overbought status of the RSI indicates the potential for a minor correction or a period of stabilization in the short term. If the bulls maintain their position near the current level, it could pave the way for a rally to $0.89 next week.
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