The third week of August 2024 surprised the cryptocurrency market, with some of the biggest altcoin gainers being those that had previously suffered significant losses.
In particular, many of the top 100 altcoins by market cap are ending the week in the green. Let’s take a look at the top three outperformers, what drove their gains, and what’s next for them.
Polygon (MATIC)
Last Friday, the price of Polygon (MATIC) was $0.40. So far, the token has surged 32.50% over the past 7 days, reaching $0.53, making it one of the best performing altcoins.
The impressive recovery of MATIC is likely related to the increase in whale accumulation. Typically, large increases in whale buying drive up the price of cryptocurrencies, and this appears to be the case here. Additionally, the anticipation surrounding the upcoming token migration to POL may have created new demand and optimism.
Technically, the MATIC breakout was driven by a falling wedge formation. A falling wedge is a bullish pattern where two downward sloping trend lines (representing lower highs and lower lows) converge. When buyers intervene to slow the decline, a reversal occurs, as seen in the MATIC.
The Moving Average Convergence Divergence (MACD) is also positive, confirming the upward momentum. The trend and momentum indicator MACD, when in positive territory, indicates bullish momentum, supporting a continued price recovery.
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If the trend continues, MATIC could extend its rally to $0.56. There is a possibility of further increase to $0.672 after the POL migration on September 4. However, if this event triggers a “news sell” reaction, MATIC’s price could fall to $0.46 instead.
Federation of Artificial Superintelligence (FET)
After a few weeks of decline, FET’s price has risen 26% in the past seven days, helping it land on this coveted list. On August 3, the token fell below $1 despite cheers over its merger with the Artificial Superintelligence Alliance.
The early stages of consolidation were difficult, but the buildup since the last stage began has been crucial to the recent price pump.
FET is currently trading at $1.07 and the recent rally appears to be driven by increased capital inflows. On the daily chart, the Money Flow Index (MFI) is at its highest level since early August. This surge indicates that the price rally is supported by significant buying volume, reflecting strong investor interest and market participation.
If sustained, the price of this altcoin could see a cumulative 69% increase from the bullish defense of $0.78. However, the token also faces potential resistance at $0.15. If the bulls fail to break this zone, the price of FET could fall to $0.92.
BitTorrent (BTT)
BitTorrent (BTT), a cryptocurrency designed to power the largest decentralized peer-to-peer data sharing network, has been the biggest altcoin gainer this week. The coin’s recent surge is largely tied to the broader performance of Justin Sun-related cryptocurrencies.
Sun, the founder of the Tron blockchain, acquired BitTorrent in 2018. Since then, the price of BTT has often reflected developments related to Sun. This time, the launch of SunPump, the rise in the price of Tron’s meme coin, and the rise in the price of TRX have contributed to BTT’s strong performance. On August 21, BTT’s trading volume surged by more than 200%, signaling a new interest in the token.
Currently, BTT is trading at $0.00000093, its highest level since June 16. Two days ago, it briefly reached $0.0000010, a historically important supply zone that would require significant buying pressure to break through. As seen on the daily chart, the bulls failed to maintain momentum at that level and were rejected.
The Relative Strength Index (RSI) also reached the overbought limit of 70.00, prompting a rebound. The RSI is a key indicator for measuring market momentum and identifying overbought or oversold conditions.
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A reading below 30.00 on the Relative Strength Index (RSI) indicates that the asset is oversold, while a reading above 70.00 indicates oversold buying. Additionally, the Cumulative Volume Delta (CVD), which tracks buying and selling pressure, shows that sellers are currently in the lead.
If this trend continues, the price of BTT could drop to $0.00000085. However, the bullish sentiment surrounding Sun-related altcoins could turn the tide and push the token’s value up to $0.00000098.
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