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Altcoin Season: These 3 Cryptos Are Poised to Break out as Bitcoin Soars

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James
Key Takeaways
  • Pyth Network (PYTH) is accumulating under the $0.40 resistance area.
  • Chainlink (LINK) attempts to break out from a long-term parallel channel.
  • Aptos (APT) broke out from an ascending parallel channel pattern.

October was a bullish month for the cryptocurrency market, leading to an average increase of 9%. Bitcoin increased faster than altcoins, as evidenced by its 13% appreciation and growing Bitcoin Dominance Rate (BTCD).

Nevertheless, PYTH, LINK, and APT are three cryptocurrencies with bullish formations lined up for November, setting them up for breakouts and significant gains.

Let’s analyze their price action and see which will be the first to break out.

PYTH Reaches Resistance

The PYTH price has fallen since its all-time high of $1.16 in March. The decline led to a low of $0.22 in August, causing a breakdown below the $0.40 horizontal area. The low was an 80% decline from the high. However, the price has been increasing since.

The entire movement under the $0.40 area is akin to an accumulation period, as evidenced by the cup shape (white).

Currently, PYTH attempts to break out from the $0.40 horizontal resistance area. If successful, the next resistance will be at $0.68, 65% above the current price.

PYTH Price Increase
PYTH/USDT 3-Day Chart | Credit: Valdrin Tahiri/TradingView 

Technical indicators are extremely bullish. For over three months, the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) have generated bullish divergences (green).

Furthermore, the RSI is above 50, and the MACD is above 0, both signs of a bullish trend.

Therefore, the PYTH price will likely break out and reach the $0.65 resistance.

Chainlink Attempts Breakout

The weekly time frame LINK chart shows that the price has fallen inside a descending parallel channel since March. It bounced at the channel’s support trend line in August, creating a long lower wick and validating the $8.75 horizontal area as support (white icon).

The price of LINK has increased since and is attempting to break out from the channel. If successful, it will confirm the correction is over.

Chainlink’s wave count supports this prediction, showing that the price has completed a five-wave increase (white) and A-B-C correction afterward (black). If the following breakout has the same length as the previous upward movement, LINK will reach a high of $37.60.

LINK Weekly Chart
LINK/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView 

Technical indicators give preliminary bullish signs. The MACD has made a bullish cross (black circle) while the RSI is increasing and is nearly above 50. So, the most likely future outlook is a breakout and increase toward $37.60.

APT Completes Altcoin Season Cryptos

The APT price has increased since August. In September, it broke out from an ascending parallel channel and reached a high of $11.22 the next month. However, APT failed to close above the confluence of resistances at $10.20 and has fallen since.

The 0.382 Fibonacci resistance level and a horizontal resistance area create the level.

Despite the decline, the Aptos price has created higher lows alongside the channel’s slope. During this time, the RSI and MACD have generated hidden bullish divergences, which are considered signs of trend continuation.

Aptos Increase
APT/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

Moreover, the wave count indicates that APT is in wave four of a five-wave increase. So, once the current correction is over, APT may break out.

If APT breaks out, the next resistance will be at $14, created by the 0.618 Fibonacci retracement resistance and a horizontal resistance area.

Altcoin Season Underway

While the actual altcoin season has not started yet, since the Bitcoin dominance rate is continuously making new highs, LINK, APT, and PYTH are three cryptos that can post significant gains once they break out from their respective resistance levels.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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