Date: February 1, 2025 | 06:08 AM GMT
The cryptocurrency market has been experiencing a rollercoaster ride following the strong rally in November, which was fueled by Donald Trump’s election victory. Bitcoin (BTC) surged to an all-time high (ATH) of $108K on December 17 but later entered a correction phase, dipping to $89K on January 13.
However, market sentiment shifted once again with Trump’s inauguration, pushing BTC to a new ATH of $109K on January 20. Currently, BTC is holding strong above $101K, and with this renewed bullish momentum, altcoins are also gearing up for potential upside movements.
Here’s a closer look at three top altcoins—Ethereum (ETH), XRP, and Avalanche (AVAX)—that are showing promising technical patterns.
Ethereum (ETH)
Ethereum (ETH) faced a consistent downtrend after getting rejected from its $4,100 high on December 16. Since then, it had been trading within a falling wedge pattern, which is typically a bullish reversal setup.
Ethereum (ETH) Daily Chart/ Coinsprobe (Source: Tradingview)
A recent bounce from the 200-day simple moving average (SMA) helped ETH break out of this wedge, pushing its price to a local high of $3,437. Currently, ETH is trading at $3,244 and retesting the breakout trendline.
Key levels to watch:
- A successful bounce from this retest could push ETH toward $3,744 and $4,106.
- However, failure to hold the breakout level might invalidate the bullish setup.
XRP (XRP)
On the 4-hour chart, XRP recently bounced off its 100 SMA support at $2.65 and is now trading around $2.98, just below a similar descending trendline that has previously led to strong breakouts.
XRP (XRP) 4H Chart/Coinsprobe (Source: Tradingview)
This pattern closely resembles previous setups where XRP’s 25 SMA acted as a dynamic support near the trendline, triggering breakout rallies (as highlighted by the blue circles).
Key levels to watch:
- If XRP breaks above the descending trendline, the next major resistance is at $3.38.
- A confirmed breakout above $3.38 could set the stage for an extended rally.
Avalanche (AVAX)
AVAX is currently trading at $33.88, moving within a falling wedge—a bullish pattern that often signals a trend reversal upon breakout.
Avalanche (AVAX) Daily Chart/ Coinsprobe (Source: Tradingview
The token recently found strong support around $32, aligning with both the lower boundary of the wedge and the 200-day SMA. The MACD is also showing early signs of a bullish crossover, which could indicate upward momentum.
Key levels to watch:
- A breakout above the wedge resistance could send AVAX toward $38 and $41.
- Failure to break out might result in another retest of the $32 support.
What’s Ahead?
The momentum in the altcoin market is currently tied to Ethereum’s breakout. The ongoing retest of the breakout level will be a crucial turning point for the entire market. If ETH successfully bounces from this level, we could see a strong altcoin rally, with tokens like XRP and AVAX following suit.
However, if ETH fails to hold, it might signal further consolidation before the next leg up.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
