After passing through September, notoriously hostile for cryptocurrencies, almost entirely unscathed, what's next for altcoins? l Hameem Sarwar
- Altcoins are ready to gain value in October after passing Redtember unscathed.
- Ethereum may finally leave its bearish trend and strengthen its value.
- XRP faced the enigma of a potential U.S. SEC appeal against Ripple.
After passing through September, notoriously hostile for cryptocurrencies, almost entirely unscathed, altcoins – the alternative digital assets to Bitcoin – are preparing to experience a positive October.
Here are the top five altcoins to watch closely in the coming month.
Ethereum May Get out of Bearish Trend
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been grappling with positive and negative indicators in recent months. While on-chain data and short-term technical analysis suggest a potential upward trend, concerns surrounding the Ethereum Foundation’s consistent selling and the inflationary supply post-Dencun upgrade have dampened investor sentiment.
Despite these challenges, Ethereum’s strong fundamentals, including its decentralization, security, and censorship resistance, continue to attract supporters. The growing volume of decentralized exchange activity on the Ethereum network and the recent bullish divergence in the ETH/BTC chart are additional signs of potential strength.
However, the Ethereum price has yet to break out of a long-term descending parallel channel, suggesting that a sustained uptrend remains uncertain. The short-term outlook for ETH/BTC is more optimistic, with analysts predicting a significant increase in the coming months.
Ultimately, Ethereum’s future direction will depend on its ability to overcome the challenges posed by selling pressure, inflationary supply, and the performance of Layer-2 solutions.
BNB to Soar as CZ’s Release Looms
Binance Coin (BNB) has been on a strong uptrend since August, with multiple attempts to break above the $605 resistance level. The recent positive development of Binance founder Changpeng Zhao’s impending release from jail has further fueled optimism for the token’s future.
While the BNB price has faced temporary setbacks, the overall technical indicators remain bullish. The breaking of the downtrend of lower highs and the positive divergence in the RSI suggest a growing likelihood of a breakout.
The long-term wave count analysis aligns with this bullish outlook, indicating that BNB is in the final stages of an uptrend that could lead to a new all-time high. The most likely target for this potential breakout is around $920.
With positive price action, strong technical indicators, and favorable news surrounding CZ’s release, BNB appears well-positioned for a significant upward movement. However, investors should remain cautious and conduct thorough research before making investment decisions.
Bitcoin Cash Poised for Rally
Bitcoin Cash (BCH) has experienced a volatile year in 2024, with a significant decline following an initial price surge. However, recent price action and technical indicators suggest that a potential breakout may be on the horizon.
The BCH price has reclaimed a crucial horizontal support level and is attempting to break out from a corrective pattern. While the weekly timeframe shows mixed signals, the daily timeframe offers a more bullish outlook.
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A bullish divergence and the formation of a descending channel in the daily chart indicate that a trend reversal may be imminent.
If BCH successfully breaks out of the current resistance area, it could see a rapid increase toward $520, coinciding with the midline of the long-term parallel channel. However, it’s important to note that the weekly RSI and MACD are still neutral, suggesting that the overall trend may remain uncertain until a more pronounced bullish signal emerges.
XRP on the Verge of Breakout
Ripple’s XRP has faced prolonged underperformance, failing to break its previous all-time high and lagging behind the broader cryptocurrency market. However, there are indications that a long-awaited breakout may be imminent.
XRP is nearing the convergence of a symmetrical triangle pattern, a technical formation often preceding a significant price movement. The wave count analysis suggests that this movement is likely upwards, potentially leading to a target price of $2.34.
While technical indicators remain neutral, the bullish 1-2/1-2 wave count formation in the daily timeframe supports an upward breakout. This pattern often leads to a substantial wave three extension, aligning with the potential for a significant price increase.
If XRP successfully breaks out of the symmetrical triangle pattern, it could finally break free from its long-term downtrend and embark on a significant upward journey. However, investors should remain cautious and consider all factors before making investment decisions.
Potential Negative Scenario
The outlook for XRP may be negative in the case the U.S. Securities and Exchange Commission (SEC) will appeal – as it was reported – the landmark ruling in the Ripple (XRP) lawsuit, a move that has drawn criticism from pro-crypto attorney John Deaton . He believes that the SEC has no legal grounds for an appeal and that the agency’s primary motivation is to prolong the case.
In July 2023, Judge Torres ruled in favor of Ripple, determining that the secondary sale of XRP does not constitute a security. This significant victory for Ripple marked a turning point in the ongoing battle between the SEC and the cryptocurrency industry.
Despite the clear ruling, the SEC has indicated its intention to appeal the decision. The agency has not publicly disclosed the specific grounds for the appeal. However, it is believed that it may argue that Judge Torres erred in her interpretation of the Howey Test, a legal framework used to determine whether an investment is a security.
Deaton, who has been closely involved in the Ripple case, contends that the SEC’s argument is baseless. He points out that the judge’s ruling effectively nullified the Howey Test criteria for secondary sales of XRP. This made any appeal on this ground futile.
Moreover, Deaton argues that an appeal would waste taxpayer money. Even if the SEC were to win on appeal, the case would likely be sent back to Judge Torres. And he would almost certainly reaffirm her original ruling.
Cardano’s Bullish Momentum Gains Strength
Cardano (ADA) has shown signs of recovery after a significant price decline following its 2024 high. The recent announcement of a new liquid staking project and positive technical indicators suggest that a breakout from a long-term resistance level may be imminent.
Helix Labs, a Cardano-based DeFi project, has raised $2 million in funding to integrate Cardano into decentralized finance. This development will allow ADA holders to stake their tokens and earn rewards while maintaining liquidity.
The positive news surrounding Helix Labs has coincided with a bullish trend in the ADA price. During the weekly timeframe, ADA broke out of a descending parallel channel. It is now approaching a key resistance level at $0.54. Technical indicators such as the RSI and MACD are also bullish, suggesting a significant upward movement may be underway.
ADA has recently broken out of a descending resistance trend line in the shorter-term six-hour chart, confirming the trend reversal. This further strengthens the case for a potential breakout and a move towards the $0.54 resistance level.
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