The projected move from a head & shoulder pattern breakdown is measured from the top of the head to the neckline. Applying this projection to the current chart structure, it points towards a downside target between $500 billion and $520 billion in total altcoin market capitalisation. Currently, the levels are hovering around $690 billion, which implies a potential 25% to 30% decline if selling pressure accelerates.
This move could increase Bitcoin dominance, trigger sharper corrections in mid- and small-cap altcoins and postpone any immediate altseason narrative.
What’s Next for the Altcoins?
Bearish scenario: If the breakdown holds and the trendline fails to recover, the technical structure favors a deeper correction toward $580B and potentially $500B. This would mark a broad market reset and likely extend underperformance across the altcoin sector.
Bullish scenario: If buyers step in aggressively and reclaim the broken support, pushing market cap back above $750B–$820B, the breakdown would turn into a false move. In that case, altcoins could stabilize and resume upside momentum.
For now, the structure and sentiments remain cautious, and the upcoming weekly close will determine whether altcoins will face a deeper correction or rebound, transforming this into a small shakeout.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
About Author
