- The altcoin market formed a multi-year cup and handle pattern between 2021 and 2025.
- A breakout above the neckline triggered a major rally, with market cap rising from $1.1T to nearly $2T.
- The breakout marks the end of a long consolidation phase and the start of a sustained expansion trend.
After several years of structural development, the total altcoin market capitalization, excluding Bitcoin and Ethereum has broken above key resistance. The multi-year chart reflects a well-defined “cup and handle” formation, indicating a completed consolidation phase. This pattern spans from early 2021 through 2025, ending with a confirmed breakout and rally. The shift marks a notable change in market behavior, transitioning from long-term accumulation to sustained growth.
Prolonged Decline Shaped the Cup’s Left Side
According to analysis prepared by Titan of Crypto, beginning in early 2021, the altcoin market experienced a sharp drawdown that extended into mid-2022. This period defined the left side of the cup, as market capitalization declined steeply over several months.
By late 2022, the decline stabilized, forming a rounded bottom. Prices remained compressed during this stage, creating the base structure of the cup. The market saw extended sideways movement, pointing to heavy accumulation before recovery started.
Between 2023 and 2024, market capitalization gradually climbed, forming the right side of the cup. This upward movement was steady, eventually reaching the horizontal resistance level established in 2021. The resistance line became a neckline, repeatedly tested but never surpassed during this phase. Every rejection reinforced the neckline’s strength, maintaining the cup structure without distortion.
Handle Formation and Retest Completed in 2025
In early 2025, the market experienced a pullback that shaped the handle of the pattern. This retracement was moderate, preserving the overall structure. The pullback remained shallow compared to the original decline, signaling that selling pressure remained limited. After the handle formation, market capitalization returned to the neckline, preparing for a retest. This final consolidation step ended with a breakout above the resistance level.
The breakout occurred when capitalization closed above the neckline with clear conviction. An inset on the chart captured the breakout in detail, confirming structural completion. Following this move, the market entered expansion territory, with capitalization climbing beyond prior highs. A strong rally followed, indicated by the yellow section on the chart. This rally extended over several weeks without major retracement.
After crossing the neckline, capitalization increased from $1.1 trillion to nearly $2 trillion in a short period. This marked one of the largest multi-week gains since the 2021 peaks. The momentum remained consistent, with no breakdown visible in the structure. Every stage of the cup and handle formation is present: decline, rounded base, retracement.
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