These three altcoins are in a bullish formation against Bitcoin (BTC) and could outperform it in February.
Despite Bitcoin (BTC)'s decline since January 14, these altcoins are showing positive price action. Can they outperform BTC in February?
Chainlink (LINK) price breaks long-term resistance
Weekly technical analysis on the time frame shows that LINK price has fallen below a descending resistance trendline since June 2020. The decline resulted in a low of ₿0.00018 in June 2023.
While the move seemingly caused a break from the $0.00023 support area, LINK recaptured it shortly after and turned the decline into a divergence (red circle).
LINK price broke out of the trendline after over 1,100 days and peaked at ₿0.00045 in November before falling. The subsequent decline confirmed the ₿0.00042 area as resistance.
Despite the decline, LINK has regained its footing and is attempting another breakout. If successful, the price can rise by 100% to the next resistance at ₿0.00075.
The daily Relative Strength Index (RSI) supports the bullish move. Traders use the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether they should accumulate or sell an asset.
If the RSI value is above 50 and the trend is up, bulls still have the advantage, but if the value is below 50, the opposite is true. The RSI is above 50 and rising. Both are bullish signs.
LINK/BTC 2-week chart. Source: TradingView
Despite this bullish LINK price prediction, a failure to breakout above ₿0.00042 could trigger a 40% decline to the next support at ₿0.00022.
Read more: What is Chainlink (LINK)?
Frax Share (FXS) completes accumulation
FXS price had fallen below a descending resistance trendline since its all-time high of ₿0.0012 at the start of 2022. The trend line was confirmed several times and resulted in a low of ₿0.00013 in November 2023.
Since then, the price has risen and broke out of the trend line two weeks ago. At this point, the trend line had existed for almost 730 days.
Before the breakout, the weekly RSI produced a bullish divergence for over six months. Such divergence is rare and often leads to an uptrend reversal.
If the FXS rise continues, the price may reach the resistance at ₿0.00048, 100% above the current price.
FXS/BTC weekly chart. Source: TradingView
Despite this bullish FXS price prediction, a weekly close below the resistance trendline could trigger a 30% decline to ₿0.00016.
Read more: What are the implications of tokenizing real-world assets?
Ethereum (ETH) creates bullish divergence
The last altcoin that could outperform BTC is ETH.
ETH price has been rising along an ascending support trend line for 1,600 days. More recently, the trendline was confirmed in early January (green symbol), creating a large bullish candle.
Interestingly, the weekly RSI created a bullish divergence and moved outside its oversold region. Previously, ETH had created such a divergence as the upward move began.
ETH price will confirm its uptrend reversal by breaking out of its descending resistance trendline (dashed). Then it can rise by 50% to the next resistance at ₿0.08.
ETH/BTC weekly chart. Source: TradingView
Despite the bullish ETH price prediction, a weekly close below the ascending support trendline could trigger a 30% decline to the next support at ₿0.036.
Read more: How do I buy Ethereum (ETH) with a credit card?
For the latest crypto market analysis from BeInCrypto, click here.
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. Please note that our Terms and Conditions, Privacy Policy and Disclaimers have been updated.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.