TLDR:
- The altcoins market cap is retesting the $923B support zone after months of correction and sideways action.
- A confirmed break below $788B could flip sentiment bearish and trigger wider altcoin sell pressure.
- Ethereum’s recent rally is reviving altcoin momentum, but resistance above $1.09T still caps upside.
- Inverse head and shoulders pattern on TOTAL3 suggests bulls may aim for $1.2T if support holds.
Altcoins are hanging onto a critical zone. After months of correction, prices are once again pushing against a well-watched support level. Analysts believe this area could make or break the current bullish structure.
Renewed interest from Ethereum’s rally has given alts some life. But the real move won’t come until new highs are in play.
Altcoins Hover at Major Price Pivot
Daan Crypto Trades pointed to a fresh retest of previous local highs on the altcoin market chart. This level sits just above $923 billion in total market cap for coins excluding Bitcoin and Ethereum.
Traders often call this the “chop zone,” a stretch of sideways movement where markets struggle to choose a direction.
The latest price pullback brought altcoins right back to this area. According to the chart shared by Daan, this level acts like a pivot. Hold above it, and the market could push toward higher targets. Slip below it, and traders may brace for a deeper slide.
Altcoins have retested their previous local highs on this recent correction.
This is a key area to hold to remain in a bullish trend locally.
Alts have topped in late 2024 after the election run up. It has been a rough ride for them since but we've seen renewed interest towards… pic.twitter.com/SOcWQPbzSG
— Daan Crypto Trades (@DaanCrypto) August 7, 2025
Altcoins peaked in late 2024, riding momentum from post-election speculation. But that rally didn’t last. Since then, many altcoins have lost ground, giving back double-digit gains as capital rotated back into larger caps.
Daan noted that the recent Ethereum rally shifted attention back toward alts. However, there’s still hesitation across the board.
Without a push past key resistance at $1.09 trillion, the current trend might stall. The so-called “euphoria zone” sits even higher, around $1.13 trillion, marking the ceiling of the last major surge.
Pattern Breakout Suggests Altcoin Bigger Move
In a separate update, Bitcoinsensus flagged an inverse head and shoulders pattern forming on the TOTAL3 chart. This index tracks the market cap of all altcoins minus Bitcoin and Ethereum.
The neckline breakout suggests bulls are back in play. A clear throwback, followed by price strength, supports the move.
ALTCOIN MARKET BREAKOUT: Inverse Head & Shoulders on Total3 in Play! 🚀🔥
📈 Confirmed Neckline Breakout: We've seen a textbook throwback indicating strong upward momentum.
📊 Target Structure: Projected market cap of $1.2 trillion—signaling significant upside potential!
🔍… pic.twitter.com/ibeLy9pZqr— Bitcoinsensus (@Bitcoinsensus) August 7, 2025
According to the projection, if this pattern holds, the next upside target sits around $1.2 trillion. That’s a long way up from current levels, but the chart structure hints it’s possible. Still, the focus remains on one thing: holding the white support zone.
The market’s next step may come down to whether this support holds. A drop below $788 billion, labeled as the “caution zone,” could flip the short-term bias to bearish. Below that, the $671 billion level is where things get risky.
For now, altcoins are at a key crossroads. Eyes are on the $923 billion level. Hold steady, and the path to recovery remains open. Lose it, and the bullish setup fades fast.
