Total2 not Bullish, Alts will drop again
In my last idea on Total2, I predicted a 50% drop in Alts. Little did I know that this 50% drop would happen so quickly. Now we see the index found support and on the rise. On face value it looks set to reach the top exponential decay curve at around 106 Billion. But looks are deceiving. We can see that there is a lot of resistances that the index must surpass in order to arrive to 106 Billion. These resistances include the rising wedge pattern that the index is in now, the gann fan trendline , the ichi cloud and the 50% RSI threshold. Already we see rejection from the gann fan , although the index may try to break it again. The Ichi cloud is thick and will offer a lot of resistance going up.
To compound the problem there is a large gap from 22.5B to 14B. I am not sure if indexes like this fill their gaps. The index could return to the descending blue trendline that has supported the index 7 times since a year.
A drop to the blue trendline will entail a 60% drop in the price of Alts and closing the gap will mean an 80% drop . It is my opinion that within a year 99% of Alts would perish. Already many Alts projects suffered in the wake of the recent drop . Further drops would be deadly to Alts.
To compound the problem there is a large gap from 22.5B to 14B. I am not sure if indexes like this fill their gaps. The index could return to the descending blue trendline that has supported the index 7 times since a year.
A drop to the blue trendline will entail a 60% drop in the price of Alts and closing the gap will mean an 80% drop . It is my opinion that within a year 99% of Alts would perish. Already many Alts projects suffered in the wake of the recent drop . Further drops would be deadly to Alts.
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