Altcoins may be on the cusp of an explosive move, as Global Macro Investor founder Raoul Pal shares a bullish outlook for the XRP-led TOTAL3 market cap.
“You can’t help but stare at this chart,” Pal shared in his X post today. The market veteran’s chart indicates that the TOTAL3 market cap looks very bullish, as an imminent breakout could send the altcoin market into a frenzy.
Rallying Total3 Market Cap Sparks Bullish Momentum
For the uninitiated, the TOTAL3 market cap represents the valuation of the global cryptocurrency market, excluding Bitcoin and Ethereum. Notably, their exclusion puts XRP, the third-largest cryptocurrency by market cap, in the lead. At the time of writing, the TOTAL3 index stood at $1.09 trillion, up 3% since the start of this week.
Meanwhile, Pal highlighted its bullishness in his post today, particularly as it nears the upper resistance of an inverted descending triangle. The index has been consolidating within the structure since peaking at $1.13 trillion in November 2021.
It attempted to break out during the Trump-inspired late 2024 rally but succumbed to the resistance when it topped at $1.16 trillion in December. With the TOTAL3 market cap now trending near the top again, it could have a ripple effect on the broader altcoin market if it defies the years-long supply neckline.
Moreover, this optimism is clearly based on the market impact during the last breakout in May 2020. The TOTAL3 market cap broke out of a descending triangle at the time, sparking a rally from around $65 billion to November 2021’s peak of $1.13 trillion.
Notably, this break sent altcoins soaring, as capital shifted from Bitcoin and Ethereum to mid and low-cap tokens, sparking multiple new all-time highs. A similar outcome would finally usher in the long-awaited altseason, where other cryptocurrencies like XRP would dominate BTC and Ether.
Dwindling Bitcoin Dominance Further Fuels Altseason Prospects
Meanwhile, the decline in Bitcoin’s dominance further fuels the bullish outlook for altcoins. Since its peak at 66% in June, Bitcoin’s market share has dropped 11.8%, with altcoin leader Ethereum leading the sector’s rebound.
After recovering over the last two weeks, Bitcoin’s dominance has resumed its downtrend this week, further raising the enthusiasm that altcoins would continue to gain weight against the pioneering cryptocurrency. It currently trends at 58.20% and is on course for its third consecutive downtrend day.
Notably, these converging factors align with Pal’s earlier assertion that the market would see a similar rally from the 2017 bull cycle. He mentioned the weakening dollar as a catalyst, with the recently highlighted bullish chart development also fueling these sentiments.
When the rally does start, the market analyst is specifically rooting for XRP to fly. He shared this outlook in August, insisting that XRP will full port to unprecedented prices.
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