Investors are paying a lot of attention to the altcoin market, especially smaller tokens like 0x Protocol (ZRX) and Celestia (TIA), which have seen significant gains. Here are the top five altcoins that traders should keep an eye on in the upcoming week.
XRP: Navigating Post-SEC Victory Challenges
Despite emerging victorious against the SEC, Ripple’s XRP faces cautious market dynamics. Despite bullish sentiments from traders and analysts, XRP has seen a 10% drop since November 6. On-chain data signals increased network activity, suggesting undervalued conditions that could attract buyers.
A potential buying spree might help XRP reclaim resistance at $0.675 and target $0.71. Conversely, breaking below the 20-day EMA at $0.63 could lead to short positions, eyeing the next support at $0.58. The RSI for XRP remains neutral at 61.93 on daily charts.
XRPUSD daily price chart with RSI. Source: Tradingview.com
Amid a wider market recovery, XRP could challenge its immediate resistance before aiming for a move above the crucial $0.7 level, historically challenging since April 2022. Positive momentum may trigger a feedback loop, drawing in more buyers and supporting XRP prices.
Dogecoin (DOGE) Bull Run and Resistance Dynamics
In its recent bullish surge, Dogecoin (DOGE) successfully flipped a crucial resistance level, entering a consolidation phase before targeting the next resistance. Memecoins like DOGE often rely on hype and speculation for momentum, making positive market sentiment a potential catalyst.
The recent price action of DOGE could attract buyers looking for another breakthrough above the immediate resistance at $0.08. Achieving this flip could lead to new multi-month highs, boosting confidence in the rally, with the next target at $0.086.
DOGEUSD daily price chart with RSI. Source: Tradingview.com
Bears are staunchly defending the $0.08 resistance, evident from recent candles’ long upper wicks. Increased selling pressure may push DOGE to the support level near $0.074. If the immediate support is breached, the DOGE price might drop to the 200-day EMA (green wave) support around $0.069. A successful defense of the immediate support by Dogecoin bulls could attract buyers back into the market.
Solana (SOL) Faces Profit Booking Amid Bull Run
Despite a remarkable 174% gain since October 14, Solana (SOL) is experiencing profit booking as bears take control. The token’s connection with troubled crypto exchange FTX has impacted its price, but a positive development is the recent announcement by Coinbase to list SOL futures, scheduled to go live on November 14.
SOLUSD daily price chart with RSI. Source: Tradingview.com
Bulls aim to flip the immediate resistance at $58, targeting $65, potentially reaching the highest level since May 2022 and attracting more buyers. The Coinbase listing is expected to boost buying pressure and reignite SOL’s bull run.
However, continued selling pressure could drop SOL to support around $49.5. Failure at this level might lead to a decline to the 20-day EMA support near $44. The RSI for SOL is overbought at 78.55 on daily charts, suggesting a sharp and potentially unsustainable price increase.
The overbought RSI may prompt consolidation before another rally, potentially attracting more short positions in the SOL-PERP market.
Yearn Finance (YFI) Skyrockets but Faces Overbought Signals
Yearn Finance (YFI) has experienced a remarkable month-long surge, witnessing a price increase of over 125% to nearly $11,070 on November 13, compared to the low near $4,900 on October 20.
The recent vertical climb since November 8, where the price spiked 20%, faces profit booking after reaching a high of $9,220 on November 13. Technical indicators suggest a buy signal for YFI, and growing investor interest in DeFi projects could further support YFI’s momentum.
YFIUSD daily price chart with RSI. Source: Tradingview.com
Despite the positive outlook, bulls need to overcome resistance at $11,200 to target $12,630. However, the RSI for YFI is overbought at 90.34 on daily charts, signaling a potential peak in bullish momentum and hinting at a corrective pullback.
If YFI fails to sustain its rally, a drop to support around $8,840 is possible. A breakdown below immediate support might present shorting opportunities for Yearn Finance, targeting $7,100.
While technicals favor a bullish scenario, caution is advised as overbought signals could influence short traders positively by week’s end.
Avalanche (AVAX): Bullish Surge, Profit Booking, and Coinbase Listing
Avalanche (AVAX) experienced a robust bull run, driving the token to $19.74 on November 13, marking a substantial 119% increase from the October 20 low of $9. However, profit booking led to an 18% drop, reaching a daily low near $16.2.
AVAXUSD daily price chart with RSI. Source: Tradingview.com
This correction was likely triggered by overbought RSI levels on November 13, and currently, AVAX’s RSI is neutral at 67.86 on daily charts. Following in the footsteps of SOL, Coinbase plans to launch AVAX futures contracts on November 14, potentially attracting buyers and aiding AVAX in flipping the $19 resistance for a new multi-month high.
A breakout above immediate resistance could propel AVAX towards the $21.5 resistance zone before a potential retreat. Despite a rebound from a yearly low of nearly $8.64 in October 2023, a sustained downtrend might see AVAX breach the immediate support at $15, with a further test of the 200-day EMA (green wave) support around $12.5.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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