- The ATC market capitalization dropped by over $200B with a bearish daily close, passing into a correctional phase as the largest altcoins dropped by more than 10 percent.
- The major supports are 3.45T and 3.37T, whereas the major resistances are 3.77T-3.80T and 3.88T-3.90T indicating the direction of the market in the near future.
- The correction aligns with a Head and Shoulders pattern, suggesting structural retests before altcoins attempt to reclaim higher valuation levels.
The altcoin market capitalization has shed over $200 billion after confirming a bearish daily close, signaling that a corrective phase is now in motion.
Key Support and Resistance Zones
According to Crypto_Jobs TA & FA, the first defense level sits at $3.45 trillion, with $3.37 trillion highlighted as a potential bottoming zone. If this level is swept and quickly reclaimed, it may establish a stronger base for future moves.
Resistance levels remain critical for assessing momentum. The $3.77–$3.80 trillion range is viewed as the first checkpoint for recovery. If buyers push beyond this, a further test at $3.88–$3.90 trillion would invalidate the near-term bearish structure on daily and four-hour timeframes.
Failure to reclaim $3.45 trillion could result in extended downside or prolonged sideways trading. These levels are currently defining the short-term path for altcoin valuations.
Technical Structure and Market Conditions
The overall formation is described as resembling a Head and Shoulders pattern, with the neckline break triggering the latest market decline. This technical breakdown has aligned with the $200 billion loss and broad declines of over 10 percent across many altcoins.
Such structural patterns often suggest exhaustion in uptrends, leading to corrective moves that test prior support zones. Market participants are closely monitoring whether this structure results in further weakening or if support levels trigger renewed accumulation.
Seasonal context also plays a role. September through November has historically leaned soft for risk assets, although not always consistently. The current correction fits within this pattern, with many traders cautious about near-term conditions.
Scenarios for Bulls and Bears
The bearish scenario revolves around losing the $3.45 trillion support and failing to reclaim it promptly. This outcome could keep the market in a consolidation phase or push valuations lower over the coming weeks.
The bullish case depends on sweeping $3.37 trillion, then quickly reclaiming $3.45 trillion and closing above $3.61 trillion and $3.71 trillion. If achieved, it may set the stage for the next upward wave in altcoins.
As noted in the update, this corrective leg could serve as the final retest of the broader uptrend before another impulsive move. For now, the market remains locked between defending key supports and attempting to reclaim broken resistance zones.
