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If Bitcoin holders were starting to look uneasy following the sweeping reciprocal tariffs that President Trump imposed on the world on Wednesday, holders of altcoins could be feeling something akin to desperation. Is crypto about to plunge even further?
Total2 at major support
Source: TradingView
Total2 is the chart of the combined market capitalisation of all cryptocurrencies, excluding $BTC. Therefore it can be used to gauge the general health of the altcoin market.
The chart is pointing out that altcoins are teetering on the brink. The market cap is currently resting on the fairly strong horizontal support at $966 billion. There is further support a bit further down at $936 billion, but if this then fails, a drop to $780 billion, or even a plummet down to $670 billion is a possibility.
Altcoins still overpriced?
Some might say that the altcoin market has already fallen more than 40%, and that it is probably time for a bounce. However, the counter-argument is that many altcoins are still very overpriced. For example, Dogecoin (DOGE) is a memecoin, and it has a market cap of $24 billion. Cardano (ADA), a layer 1 blockchain network, has a market cap of $22.7 billion. These are roughly equivalent to the Spanish telecommunications giant Telefónica ($26.6 billion) or pharmaceutical company Bayer ($23.5 billion).
Ethereum confirming break of bull trend?
Source: TradingView
Ethereum (ETH) is the leading layer 1 blockchain network by market cap. That said, the weekly chart above does not bode well. It can be seen that the price has fallen through major support levels, turning them into resistance, and the ascending bull market trendline has broken down and the $ETH price may now be confirming this break.
All that can be said in favour of $ETH is that the Stochastic RSI indicators are at the bottom. Some kind of bounce should be due, although the indicator lines could bump along the bottom for a while.
Altcoins bearish until Trump tariffs are resolved
The main problem for the altcoins is most probably the very bearish situation of the Trump tariffs. This is hitting stocks and assets across the globe, so risk assets, and especially those at the tip of the risk curve like altcoins, are not going to flourish until things change.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
