These three altcoins are exhibiting a bullish-looking formation against Bitcoin (BTC) and may outperform this month.
While BTC has been mired in a massive surge over the past four weeks, these altcoins are seeing even more positive price action. Will they outperform BTC this month?
Chainlink (LINK) price breaks 1,150-day resistance
LINK price had fallen below a descending resistance trend line since reaching an all-time high in August 2020.
The decline resulted in a June 2023 low of 18,050 satoshi and caused a break from the horizontal support area of 23,000 satoshi, resulting in a new annual low.
However, LINK price has increased since then. It then reclaimed the 23,000 satoshi area and accelerated its rise in September to break out of the descending resistance trend line the next month.
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At the time of the breakout, the trend line had already existed for more than 1,150 days. LINK is approaching the 43,000 satoshi horizontal resistance area that has existed since the beginning of 2022.
If LINK breaks out, it can rise by 90% and reach the next resistance at 75,500 satoshis. This will be a 90% upside.
LINK/BTC weekly chart. Source: TradingView
Despite this bullish price prediction, a rejection from the 43,000 satoshi area could result in a 35% decline to confirm the trendline at 25,500 satoshi.
Polygon (MATIC) is recovering at long-term support
MATIC price fell to the horizontal support area of 1,850 satoshi in October. This was the peak of a decline that had been ongoing since March.
The price bounced into the support area last week and has risen significantly since then.
The Relative Strength Index (RSI) is a momentum indicator that traders use to assess whether a market is overbought or oversold and whether they should accumulate or sell an asset.
Readings above 50 and an uptrend suggest bulls still have the advantage, while readings below 50 indicate the opposite.
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The weekly RSI is bullish. The indicator created a bullish divergence (green line) before the increase. This is a bullish sign that often precedes bullish moves. A move above 50 will confirm the reversal of the uptrend.
If it breaks out and closes above the 2,250 satoshis resistance area, it can rise by another 50% and reach the next resistance at 3,400 satoshis.
MATIC/BTC weekly chart. Source: TradingView
Despite this bullish price prediction, a rejection from the 2,250 area could result in a 15% decline to the 1,850 Satoshi support area.
Solana (SOL) is clearing the long-term resistance trend line
The last altcoin that can outperform Bitcoin is Solana. SOL price movement bears similarities to that of Chainlink. SOL has also broken out of a long-term descending resistance trend line and has been increasing since September.
Last week, SOL reached a new annual high of 134,800 satoshi, breaking the resistance area of 113,000 satoshi.
The weekly RSI supports the continuation of the increase as the indicator is above 50 and moving upwards. If the rise continues, the next resistance will be at 200,000 satoshis, 50% above the current price.
SOL/BTC weekly chart. Source: TradingView
Despite this bullish price prediction, a weekly close below the 113,000 satoshi support area could result in a 35% decline to the next support at 80,000.
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Disclaimer
In accordance with Trust Project policies, this pricing analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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