Total3 Index Nears Crucial Ascending Trendline, Eyeing $1.16T High

The altcoin market cap excluding Bitcoin and Ethereum (tracked by the TOTAL3 index) is currently retesting a significant ascending trendline support, a level that has repeatedly acted as a market floor since early 2024.

Sitting near $903 billion after retreating from the $1.16 trillion resistance ceiling, this critical support has historically prevented deeper corrections and triggered substantial recovery phases.

This test has market watchers closely observing whether buyers will defend the zone, which could lead to renewed momentum and attract fresh capital inflows into altcoins.

CryptoPulse_CRU highlighted on X that "If price bounces from here, we could see another move toward the all-time high zone around $1.16 trillion," emphasizing the importance of this juncture in defining the market’s next trajectory.​

Ascending Channel Dynamics Shape Market Behavior

The TOTAL3 index’s current pattern mirrors a textbook ascending channel characterized by progressively higher lows capped by consistent resistance around $1.16 trillion.

This formation typically signals ongoing consolidation before a potential breakout.

Historically, rallies up to this neck zone have provoked selling pressure, resulting in short-term corrections, but the long-term trendline has reliably absorbed declines, preserving the broader bullish structure.

The $900 billion support zone balances cautious optimism with fading momentum.

A hold here would reaffirm buyers’ confidence and maintain the longer-term ascending trendline intact.

Conversely, a breakdown may shift focus to the next strong demand zone around $800 billion.

Trading volume remains stable but dominated by short-term traders, indicating the market is awaiting a clear signal before committing larger capital.​

Potential Paths: Rally to New Highs or Deeper Consolidation

A successful bounce off this pivotal support could propel altcoins toward revisiting the $1.16 trillion resistance.

Such a breakout would indicate growing investor confidence and increased liquidity rotation into altcoins—a scenario often occurring when Bitcoin’s dominance wanes.

Past breakouts from this level have historically sparked weeks of altcoin strength, particularly in mid- and small-cap projects that outperform during bullish phases.

Should the support fail, further market correction may ensue with an extended consolidation period.

However, previous pullbacks have served as entry points for strategic investors aligning with the long-term bullish structure.

As the altcoin market stands at this critical crossroads, the upcoming weekly closes will be closely watched to gauge if the recovery momentum will take hold or if uncertainty will deepen