Smaller-cap dominance rests on long-term support, suggesting altcoins may rise.
TOTAL3, representing the combined market capitalization of altcoins, has been compressing below the $900 billion level for several weeks.
Analysts note that this sustained consolidation is creating pressure under a key structural threshold. A change of character above $900 billion could act as a trigger, potentially pushing TOTAL3 into a low-volume ramp on the profile.
This area often allows for rapid price movements, with the $1 trillion point of control (POC) serving as the next significant target.
Ethereum and Bitcoin have recently confirmed strength, suggesting that the broader cryptocurrency market is poised for rotation.
Traders are observing December consolidation patterns, which could set the stage for a Q1 breakout in altcoin valuations. The coiled structure of TOTAL3 indicates a market ready for movement, with rotation pressure steadily increasing among market participants.
Bitcoin dominance (BTC.D) recently broke below a multi-year rising channel, signaling a potential rotation of capital into altcoins.
Crypto Astronaut highlighted that this technical breakdown often precedes altcoin expansions, as investor focus shifts away from Bitcoin. TOTAL3 currently rests on a long-term support trendline established in early 2024. Historically, this trendline has acted as a foundation for altcoin growth, indicating that the market is preparing for an upward move.
Smaller-cap dominance (OTHERS.D) is currently at a major macro support level maintained since 2018.
This suggests that smaller altcoins are positioned for strong performance alongside broader altcoin trends.
The combination of declining BTC dominance and stable small-cap support mirrors past cycles in which altcoins led market growth. Traders are closely monitoring these indicators as signals of potential market momentum.
TOTAL3’s $900 billion range cap remains a key focus. Surpassing this level would shift attention to the low-volume ramp area as the next acceptance zone.
Market participants are likely to target the $1 trillion POC once this zone is breached, reflecting a technical path consistent with previous altcoin expansions. This consolidation period is important, allowing the market to absorb pressure before a potential breakout.
Eye Zen Hour emphasized that TOTAL3 is coiled and awaiting a CHoCH above $900 billion. This structure often precedes fast price movements, with low-volume areas accelerating market activity.
Traders observe such compressions as opportunities for efficient price discovery toward higher levels.
Ethereum and Bitcoin remain strong, aligning TOTAL3’s coiled position with overall market stability.
Rotation pressure is building, and smaller-cap dominance supports the potential for an explosive altcoin phase. December consolidation is a critical period, as it may determine momentum heading into the first quarter.
Historically, TOTAL3 compression below $900 billion has preceded rapid altcoin movements. A break above this level would direct focus to the $1 trillion POC, a natural magnet for market activity.
This technical setup reflects conditions consistent with prior altcoin seasons, indicating that the market may be entering a period of heightened altcoin performance.
