3 Altcoins to Watch in the Second Week of February for Potential Gains
Key Takeaways
- Solana ETF speculation may attract institutional investment and boost prices.
- Cardano’s smart contract upgrades could drive DeFi adoption and growth.
- Polkadot’s EVM upgrade enhances blockchain interoperability and developer interest.
The crypto market is heating up as February unfolds, and several key developments are set to impact some of the top altcoins.
In the week ahead, all eyes are on Solana (SOL), Cardano (ADA), and Polkadot (DOT) as they approach major milestones that could influence their price action and investor sentiment.
From Solana’s potential ETF approval to Cardano’s latest breakthrough in smart contracts and Polkadot’s upcoming EVM compatibility upgrade, these projects are making moves that could reshape their ecosystems.
In addition, their price action is showing that long-lasting corrective phases might come to an end, setting up the stage for a sustained bull phase.
Solana (SOL)
Solana has been in the spotlight due to its high-performance blockchain capabilities. Asset managers have filed applications with the U.S. Securities and Exchange Commission (SEC) to create exchange-traded funds (ETFs) for altcoins, including Solana.
The potential approval of a Solana ETF could significantly impact its price by attracting institutional investors.
SOL is currently trading around $197.59, attempting to break out of a descending channel pattern after bouncing from strong support near $173.42.
The structure suggests a corrective WXYXZ pattern, with the latest low forming wave Z. A breakout above the wedge resistance near $210 could trigger a bullish move toward the 0.382 Fibonacci retracement at $246.54.
The RSI is recovering from oversold conditions, supporting a potential uptrend. Key levels to watch include $195.81 (0.786 Fibonacci support) and $231.72 (0.5 Fibonacci resistance).
Failure to sustain above $173.42 would invalidate the bullish scenario, opening the door for further downside.
Cardano (ADA)
Cardano is recognized for its focus on scalability and sustainability in blockchain development. The platform has been actively working on various upgrades and partnerships, which could catalyze price movements.
Investors are watching Cardano’s progress in implementing smart contract functionalities and expanding into decentralized finance (DeFi) applications.
ADA is trading at $0.726, showing signs of a potential reversal after completing a corrective ABC pattern. The price has bounced from strong support near $0.536 (0.786 Fibonacci level) and is forming a potential five-wave impulse.
A breakout above $0.818 (0.5 Fibonacci retracement) would confirm bullish momentum, with targets at $1.029 (0.236 Fibonacci level) and $1.124.
The RSI is recovering from oversold conditions, suggesting a possible trend shift. However, failure to hold above $0.702 (the 0.618 Fibonacci level) could lead to further downside.
The breakout structure remains unconfirmed, making the next key resistance test critical for ADA’s short-term trajectory.
Polkadot (DOT)
Polkadot aims to enhance blockchain interoperability, allowing different blockchains to communicate and share information.
The network is preparing for a major upgrade that will introduce features like Ethereum Virtual Machine (EVM) compatibility and increased transaction speeds.
This upgrade will attract more developers and projects to the Polkadot ecosystem, potentially influencing its market value.
DOT is trading at $4.751, showing a potential reversal after completing a WXYXZ corrective pattern. The price has bounced from key support at $4, potentially forming a five-wave impulse.
A break above $5.192 (0.786 Fibonacci retracement and descending resistance) could confirm a bullish reversal, targeting $6.310 (0.618 Fibonacci level).
RSI is recovering from oversold conditions, supporting further upside momentum. However, failure to sustain above $4.50 may lead to another retest of lower supports.
The breakout structure remains in development, with a push above descending resistance needed to validate a trend reversal. Momentum confirmation is key for sustained upside.
