Why DOGE, LTC, and AVAX May Beat Bitcoin in April
Can These Altcoins Outperform BTC? | Credit: Getty Images
Key Takeaways
- DOGE, LTC & AVAX have bullish looking charts against BTC.
- The Bitcoin Dominance Rate has increased in March.
- Will these three tokens outperform Bitcoin in April?
March was a mixed month for the cryptocurrency market, characterized with significant volatility in both directions. However, the Bitcoin Dominance Rate (BTCD) rose slightly as a result of Bitcoin’s better performance compared to the rest of the crypto market.
Despite this occurrence, there are several altcoins with bullish formations in their BTC pairs. DOGE, LTC and AVAX are three such altcoins, meaning that they could gain ground to the cryptocurrency leader.
DOGE Price Reclaims Lost Support
The DOGE price has increased since the end of February. DOGE broke out from a descending resistance trend line existing for nearly 500 days and then moved above the 240 satoshi horizontal area. The area had previously provided support for more than a year before a breakdown in November 2023.
After the upward movement, DOGE reclaimed the area, which is now likely to provide support. Such deviations and reclaims are considered bullish developments that often lead to significant price increases.
The weekly RSI and MACD both legitimize the upward movement. Both generated bullish divergences (green) before the increases, a positive sign for the long-term trend.
So, the DOGE/BTC trend is considered bullish as long as the price trades above the 240 satoshi area. The next closest resistance is at 400 satoshis, 40% above the current DOGE price.
Can LTC Break out From Channel?
The LTC price has decreased inside a descending parallel channel since the start of 2023. The movement inside the channel caused a breakdown below the ₿0.0018 horizontal area and led to a low of ₿0.0011 in February. The low was very close to the channel’s support trend line.
During the low, the weekly RSI generated a bullish divergence (green), a sign of a potential bullish trend reversal. The LTC price has increased since and is approaching the ₿0.0018 area and the channel’s resistance trend line.
Unlike DOGE, the LTC price has not reclaimed its main horizontal level at ₿0.0018. However, it is expected to do so because of the bullish divergence in the RSI and the price action inside the parallel channel.
If the price breaks out, it can increase by 130% and reach the next resistance at ₿0.0037. However, failure to break out will mean the trend is still bearish and can cause a decrease to the channel’s support trend line.
AVAX Price Bounces at Previous Resistance
The AVAX price broke out from a long-term descending resistance trend line in December 2023. After the breakout, it reached the ₿0.0011 resistance area, where it was rejected.
The price has fallen since, but bounced at the resistance trend line on March 4, validating it as support (green icon). The bounce also validated the ₿0.00065 horizontal area as support.
Unlike DOGE & LTC, there is no bullish divergence in the RSI nor MACD. However, both indicators are in positive territory. If the AVAX price stays above the ₿0.00065 horizontal support area, it can increase by another 60% and reach the ₿0.0011 resistance once more.
DOGE, LTC & AVAX Poised to Outperform BTC
Due to theri bullish formations in their BTC pairs, the DOGE, LTC & AVAX price can outperform Bitcoin. This does not necessarily mean that their USD price will increase significantly. While that is a possibility, the USD pairs can also tread ground while the BTC price corrects instead.
