TOTAL3 holds key levels: Is the appetite for altcoins recovering?

According to analyst CyrilXBT, the TOTAL3 chart — an index of the total market capitalization of cryptocurrencies excluding Bitcoin and Ether — remains a barometer of the health of the altcoin sector. In recent days, the market has been closely watching whether traders’ risk appetite will persist, as this will influence the ongoing rotation of capital among mid-caps and small-cap projects.

The analyst notes that the index continues to maintain its upward structure, creating consecutively higher highs and higher lows. The chart remains above a critical trend line, which has historically served as a reference point for the start of major altcoin rally waves. “The structure is not yet broken,” emphasizes CyrilXBT, indicating that the preservation of support signals resilience among altcoin traders.

The trend line as a signal of risk appetite return

Holding above the trend line is not just a technical detail. It’s a signal that investors are still willing to take on risk with altcoin positions instead of shifting capital into more conservative assets. Stable support encourages market participants, creating conditions for a renewed appetite for more aggressive strategies. When the boundary holds, it often precedes a new wave of interest in mid-caps and smart contract platforms, which are forgotten during market pullbacks.

The structure remains intact: what awaits mid-caps

Currently, traders are maintaining cautious optimism. The technical picture of TOTAL3 remains clean: there are no critical violations indicating a major reversal. This inspires some market participants to expect another phase of expanded interest in altcoins, especially if risk appetite among institutional investors continues to strengthen.

Break below support: when risk appetite may disappear

However, the risk remains very real. A decisive break below the trend line will change everything. Such a scenario could trigger a cascade of price declines, especially among mid-caps, and will restore traders’ appetite for safe havens — Bitcoin and stablecoins. In this case, the altcoin rotation wave could sharply halt, and capital will flow into more reliable assets.

Traders currently view TOTAL3 as an early warning system. The chart acts as a compass for determining whether the current risk appetite will persist or shift to a conservative portfolio approach. Each touch of the trend line becomes a scenario that shapes the further development of the altcoin market.