Altcoins Set for a Critical Week Amid Market Developments
The cryptocurrency market is gearing up for a significant week, marking a crucial time for altcoins as various factors come into play. Key events such as network upgrades, decisions regarding exchange-traded funds (ETFs), and substantial token unlocks are shaping market sentiment. Traders are eager for renewed momentum following the volatile price movements witnessed throughout October.
Spotlight on COTI (COTI)
COTI has emerged as a noteworthy altcoin this week, having recently completed its Hydrogen upgrade, which is designed to enhance transaction speed, scalability, and security within its network. This upgrade positions COTI for potential growth. Following the upgrade, the token has seen a nearly 7% increase, signaling positive sentiment among traders. Currently, COTI is trading between $0.031 and $0.037, with a critical breakout point at $0.040—approximately 15% higher than its present value. If it surpasses this level, it may target $0.055 as its next resistance zone.
Between October 11 and 19, COTI’s price made a lower low while the Relative Strength Index (RSI)—a momentum indicator—created a higher low, indicating a bullish divergence. If the network maintains its improved performance post-upgrade, this divergence may trigger a short-term price reversal. However, if COTI drops below $0.031, the positive outlook could diminish, risking further declines. Nevertheless, with optimistic fundamentals and signs of recovery, COTI remains a key altcoin to monitor this week.
Cardano (ADA) Gains Attention
Cardano stands out this week as ETF discussions create a favorable short-term catalyst for its price movement. The likelihood of a US spot Cardano ETF approval has risen to 89%, with a decision from the SEC anticipated by October 26. Should approval occur, it would represent a significant milestone for ADA, providing institutional investors with exposure akin to that of Bitcoin and Ethereum ETFs.
Currently, Cardano is trading within an ascending channel, supported by the lower trend line. Recent trading activity, evidenced by three consecutive daily candles, suggests a resurgence in buying interest, likely fueled by optimism surrounding the potential ETF approval. The crucial resistance level to monitor is $0.73, which ADA must breach to establish short-term strength. A successful breakout above this point could propel ADA towards $0.86, a level that has historically limited upward movements since late September. Exceeding $0.86 could pave the way for a rally towards $1.12–$1.14, breaking through the channel’s upper boundary and creating opportunities for new highs.
From current levels, ADA needs to achieve approximately a 29% increase to reach $0.86. If the ETF approval takes place and market sentiment remains favorable, such growth appears feasible. Conversely, if the support level at $0.61 fails, potential drops to $0.59 and $0.50 may invalidate the bullish outlook. With increasing ETF anticipation and aligning technical indicators, Cardano is positioned as a significant altcoin to observe this week, reflecting broader market interest in regulatory-compliant crypto investments.
Toncoin (TON) Under Scrutiny
Toncoin is also a notable altcoin to follow this week, particularly due to an upcoming token unlock valued at $80 million set for October 23, according to DefiLlama data. Significant token unlocks can often lead to short-term volatility as new tokens enter circulation, potentially increasing selling pressure on the market.
Despite the impending unlock, Toncoin has experienced a nearly 6% rise in the past 24 hours, showcasing considerable resilience and outperforming the broader market. Nevertheless, the chart patterns suggest caution, as TON is currently situated within a descending triangle—a formation that typically indicates indecision or possible downward movement if essential support levels are breached.
Key Fibonacci support levels to watch include $2.15, $1.77, and $1.30. Presently, $2.15 serves as strong support; if this level fails, TON could experience a drop to $1.70, representing a potential 21% decline, and possibly further to $1.30 if bearish momentum persists. Conversely, reclaiming and maintaining levels above $2.53 could negate the bearish sentiment and set the stage for a rally towards $3.07.
