The True Strength Index (TSI), a momentum oscillator indicator, is flashing a highly bullish signal for altcoins. This same indicator marked the start of the epic altcoin bull run back in 2020. With major altcoins like Ethereum, Cardano, Polkadot, and Ripple already posting gains...
The True Strength Index (TSI), a momentum oscillator indicator, is flashing a highly bullish signal for altcoins. This same indicator marked the start of the epic altcoin bull run back in 2020. With major altcoins like Ethereum, Cardano, Polkadot, and Ripple already posting gains, the TSI crossover suggests a new altseason is imminent.
The TSI indicator identifies overbought and oversold conditions and divergence by comparing an asset’s price momentum to its own indicators. A bullish crossover event is a strong buy signal, indicating momentum is turning positive.
According to analyst Moustache, the 3-week TSI for altcoins has now seen a bullish crossover for the first time in 3.5 years. The last time this happened was in 2020, right before altcoins embarked on a month-long parabolic rally.
Altcoins Bottoming Out After Bear Market
Many major altcoins seem to have bottomed out after a brutal bear market stretching back to 2021. Ethereum found support near $1550 and has gained 20% in the past month. Cardano bottomed at $0.24 and is up 50% in the past month. Similar reversal signs are appearing across altcoins.
TSI Bull Signal Aligns With Price Recovery
This bottoming out and initial price recovery for altcoins aligns perfectly with the TSI indicator flipping bullish. With the momentum oscillator indicating a rally, the initial gains over the past month are likely just the beginning.
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The TSI has a proven track record of identifying the start of massive altcoin rallies. Now that it has crossed over again after years of bearishness, expectations are high for potentially months of parabolic upside ahead for the altcoin market.
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