The crypto market has proved historically that it moves in cycles like Bitcoin and its four-year cycle due to the halving. Altcoins to buy like Ethereum (ETH), Dogecoin (DOGE), and XRP “historically tend to bottom after corrective period mid-way through a particular quarter,” analysts at Rekt Capital, stated in the latest newsletter.
The altcoin market cap is believed to be holding the base support and gradually closing on the “top of its pattern for a breakout,” as revealed in the X post below.
$ALTS
Altcoin Market Cap manages to hold the base of the black triangle, despite the anticipated downside wick
Altcoin Market Cap is now reversing to the upside and now trying to breakout from its current pattern#BTC #Crypto #Bitcoin https://t.co/wjhzbMfdVl pic.twitter.com/diAwgPy0DW
— Rekt Capital (@rektcapital) January 30, 2024
This structure is starting to mirror increasing re-accumulation with investors staring at a potential altcoin hype cycle.
The tokens “bottom at a time in the market where maximum pessimism and extreme fear dominate when it comes to altcoin valuations,” Rekt Capital added.
The next weeks will be crucial for investors speculating on the performance of altcoins, especially this year.
1. Is Ethereum (ETH) The Best Altcoin To Buy Ahead Of February?
The second-largest cryptocurrency Ethereum is trading in red amidst a generally volatile and uncertain market sentiment ahead of the FOMC Meeting. With an intraday loss of 1.5% the ETH price plunged to $2300 trying to sustain above the 50-day EMA slope. Despite the uncertain technical outlook for recovery, Ethereum’s fundamental developments continue to progress, notably with its eagerly awaited 2024 hard fork, Dencun.
The latest milestone for Ethereum is the successful launch of the Dencun upgrade on the Sepolia test network, marking a significant step forward. This leaves only one more testnet deployment before the introduction of the “proto-danksharding” feature.
What’s particularly noteworthy is the speed of this growth, as daily network expansion is now 28% quicker than it was just three months ago.
If the aforementioned channel pattern is intact, the ETH price should lead a rally to retest the overhead trendline at $3000. The rising price may witness in-between resistances at $2430 and $2700.
ETH price chart | Tradingview
2. XRP Price At Base Of Support, What’s Coming Next?
XRP recently witnessed a slight decline in value, recording a 5.06% drop. Despite this minor setback, the market is showing signs of entering a bullish phase. Ripple price is currently at $0.505, with its market capitalization at approximately $27 billion. This valuation places it as the sixth-largest cryptocurrency, as per data from CoinMarketCap. Notably, there has been a surge in trading activity, with a 103% increase in the 24-hour trading volume, now at $1.83 billion. This upswing suggests a growing interest in the token among investors.
Esteemed cryptocurrency analyst Egrag Crypto recently offered an optimistic outlook for XRP. According to Egrag, XRP might experience a significant pullback in its second wave, potentially retracing up to 90% of its initial wave. This anticipated dip to around 0.41 reflects the inherent volatility within the cryptocurrency markets. Despite this, Egrag foresees a strong third wave for XRP, propelling the digital currency towards the $5 mark and setting a nearer-term target between $2.2 and $2.8.
#XRP Mid-Term Target 🚀 0.85c – $1 – $5.5 – $6.4 (Update) 📈:
Hey everyone! 👋 Don’t forget to check out the post from May 22, 2023, for the initial projections of (0.85c – $1 – $5.5 – $6.4) 🗓️. Link to the tweet 🔗https://t.co/CGLMB7CgGi.
WHAT’S NEXT? 🤔
Only a handful of… pic.twitter.com/e2iEgSLQMz— EGRAG CRYPTO (@egragcrypto) January 31, 2024
Can Dogecoin (DOGE) Pump To $1 In 2024?
Dogecoin price is experiencing a notable resurgence as the crypto market shows signs of revival this February. The meme-inspired digital currency is currently trading at $0.07897. This represents a slight drop of over 2% in the last day.
The price of Dogecoin has recently been oscillating between $0.07700 and $0.08200. Despite initial bullish trends, it failed to maintain momentum, falling below its previous support level. The past several days have showcased an overall bullish pattern, with the weekend particularly witnessing a modest increase of over 5%.
DOGE/USD Price Chart, Source: TradingView
If the bulls keep the Dogecoin price above the crucial $0.080 support level, it will challenge its next resistance at $0.09. Sustaining this level could pave the way for DOGE to aim for a higher resistance mark at $1. This scenario hinges on the market’s ability to maintain its current momentum.
However, there’s a flip side to consider. DOGE’s price may decline if market momentum falters, testing the $0.075 support level. In a bear-dominated market, DOGE might even face a steeper fall, potentially reaching down to test a lower support threshold of $0.07 in the foreseeable future. The daily candlestick displays a pronounced long-tail rejection, indicative of a strong buying interest at this lower support level.
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