NEW DELHI (CoinChapter.com) — The altcoin market has attracted significant investor attention, with small-cap tokens like 0x Protocol (ZRX) and Celestia (TIA) leading the market in terms of gains.
However, these are the five altcoins traders should watch out for in the week ahead.
XRP: Best Altcoin This Week
Ripple’s XRP has become the ‘David’ of the cryptocurrency world after defeating the ‘goliath‘ called the US Securities and Exchange Commission (SEC). However, the token failed to capitalize on the bullish news, as investors chose to exercise caution instead of plunging headlong into the market.
Despite traders and analysts remaining bullish on XRP price prospects, the token has dropped over 10% since Nov. 6 to form a daily low near $0.64 on Nov. 13. Moreover, on-chain data for XRP shows increased network activity, among other bullish cues.
As such, the discrepancy between bullish on-chain data and the XRP’s bearish price action might indicate undervalued conditions. Buyers could enter the market to capitalize on the opportunity.
A buying spree could help XRP price reclaim the resistance near $0.675 before targeting the resistance near $0.71.
Conversely, a break below the 20-day EMA at $0.63 could lead to short positions, with the next support at $0.58. The RSI for XRP remained neutral, with a score of 61.93 on the daily charts.
XRP price could ride the wider market recovery to flip its immediate resistance before bulls push for a move above the key resistance zone near $0.7. XRP has failed to hold above the price level for over a few days since April 2022.
A positive rally could also attract buyers, resulting in a feedback loop favoring XRP prices.
DOGE: The Top Runner Up Altcoin
Top memecoin Dogecoin’s (DOGE) recent bull run has seen it flipping a key resistance level, then entering a consolidation phase before targeting the next resistance level.
As memecoins generally rely on hype and speculations for bullish cues (like the ‘Will Elon Musk adopt DOGE?‘ problem), a generally positive market sentiment would likely buoy DOGE prices.
Moreover, the token’s recent price action could attract buyers anticipating another move above immediate resistance near $0.08.
Flipping the resistance near $0.08 would help DOGE price register new multi-month highs, infusing confidence in the rally. Bulls would then target the resistance near $0.086.
The bears are aggressively defending the resistance zone near $0.08, evident from the long upper wicks on recent candles. An increase in selling pressure might force the Dogecoin price to the support level near $0.074.
Breaching the immediate support could see the DOGE price drop to the 200-day EMA (green wave) support near $0.069. Buyers will likely enter the market if Dogecoin bulls successfully defend the immediate support.
SOL: An Altcoin That Escaped FTX Fiasco
Solana (SOL) has recently been one of the best-performing crypto assets, with over 174% gains since Oct. 14. However, bears have started profit booking, forcing SOL price to pare gains.
The crypto token’s association with the doomed crypto exchange FTX has harmed SOL’s price action. However, crypto exchange Coinbase recently announced plans to list SOL futures on its platform. The new offering will go live on Nov. 14, which could help increase the Solana token price.
Bulls would try to flip the immediate resistance near $58 before targeting the resistance near $65. Reaching the $65 resistance would see SOL price reach its highest level since May 2022, which could snowball and attract more buyers.
The listing could increase buying pressure and help SOL price restart its bull run. On the other hand, if the selling continues, the Solana token price might drop to the support near $49.5. Moreover, the failure of immediate support could send SOL price to the 20-day EMA (red wave) support near $44.
The RSI for SOL remains overbought, with a score of 78.55 on the daily charts. Overbought RSI suggests that the underlying asset’s price has risen sharply and likely reached an unsustainable level in the short term.
As such, the Solana crypto token could start consolidating before rallying again. Moreover, the overbought RSI could result in more short positions in the SOL-PERP market.
YFI: The Return of Mammothly-Valued Token
Yearn Finance (YFI) price has been soaring for nearly a month. The cryptocurrency’s price has risen over 125% to reach nearly $11,070 on Nov. 13, compared to Oct. 20’s low near $4,900.
YFI price went nearly vertical since Nov. 8, with the cryptocurrency’s price spiking 20% from the day’s low of $9,220 on Nov. 13 before profit booking pared gains.
Technical indicators for the Yearn Finance token forecast a buy signal. Furthermore, increased investor interest in DeFi projects could also work in YFI’s favor. Several traders shared posts on X shilling YFI as the next cryptocurrency to offer Bitcoin-level gains.
Some of the hype could translate into buying pressure for the Yearn Finance token.
Bulls must flip the resistance near $11,200 before the YFI price can target the resistance near $12,630.
However, the RSI for YFI is overbought, with a reading of 90.34 on the daily charts. Traders often view overbought RSI levels as a signal that the bullish momentum is reaching its peak, and the asset might be due for a trend reversal or corrective price pullback.
If the YFI price fails to continue its rally, the cryptocurrency’s price could drop to the support near $8,840. A breakdown below the immediate support might open opportunities for shorting the Yearn Finance crypto token, with the target near $7,100.
Though technicals might be bullish for YFI, it seems likely that short traders would end the week on a happy note.
AVAX: That Coinbase Update is Bullish This Week
Avalanche (AVAX) is another DeFi project that reaped the benefits of a positive market and increased interest in the sector. AVAX price’s recent bullrun helped the token reach $19.74 on Nov. 13, a rally of nearly 119% from Oct. 20’s low of $9.
However, profit booking spoiled AVAX’s party, with the Avalanche crypto token dropping 18% to a daily low near $16.2.
The correction was likely the result of AVAX’s overbought RSI levels, which corrected sharply on Nov. 13. AVAX’s RSI is currently neutral, with a score of 67.86 on the daily charts.
Like SOL, Coinbase has announced plans to introduce AVAX futures contracts on its platform. The AVAX-PERP market will launch with the Solana futures contracts on Nov. 14. The launch could attract buyers, helping AVAX price flip the $19 resistance to reach a new multi-month high.
A breakout above the immediate resistance might help AVAX price reach the resistance zone near $21.5 before retreating. Avalanche has attracted investor interest after its token rebounded sharply from a yearly low of nearly $8.64 in Oct. 2023.
Yet, a continued downtrend would see AVAX breach the immediate support level near $15 before testing the 200-day EMA (green wave) support near $12.5.
