A recent analysis shows that while Bitcoin’s price has been declining since January 14, three alternative cryptocurrencies (altcoins)—Chainlink (LINK), Frax Share (FXS), and Ethereum (ETH)—are exhibiting positive momentum that could allow them to outpace BTC in February.
Let us dive deeper to find out why these altcoins have a chance to outshine Bitcoin.
Chainlink Breaks Long-Term Resistance
According to an analysis, Chainlnk’s price has been falling under a long-term descending resistance line since June 2020, bottoming out at approximately $7.56 last June. Although it briefly broke support at approximately $9.66, LINK managed to reclaim that level shortly after and turn the drop into a deviation.
Also read: Cryptocurrency: 5 Coins To Watch in February 2024 To Generate Profits
Despite another pullback, LINK appears to be gearing up for a second try at breaking out above approximately $17.64. If successful, analysts project the token’s price could climb 100% to the next ceiling of approximately $31.5. Moreover, LINK’s daily Relative Strength Index (RSI), a momentum indicator used to gauge whether an asset is overbought or oversold, remains supportive of further gains as it holds above 50.
Both factors point to bullish price action ahead for LINK relative to BTC. However, failure to eclipse resistance at approximately $17.64 risks triggering a 40% plunge back towards support around approximately $9.24, tempering the positive LINK outlook.
Frax Share Forms Bottom
Like LINK, FXS’ price has also been constrained under a descending resistance line since marking its record high of approximately $50.4 in early 2022. Multiple tests of trendline resistance ultimately resulted in FXS bottoming out at approximately $5.46 in November 2023.
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In the months leading up to the upside breakout, FXS’ weekly RSI indicator formed a bullish divergence—a sign of strengthening positive momentum. Now trading above resistance, analysts forecast FXS could climb by another 100% to challenge the next hurdle around approximately $20.16.
Ethereum Flashes Reversal Signals
Rounding out the trio of outperforming altcoins, ETH’s price has closely tracked an ascending support trendline for over 1,600 days. After retesting this critical support in early January, ETH bounced sharply higher to print a large bullish candle.
To confirm its bullish trend reversal, analysts want to see Ethereum conquer nearby descending resistance (currently around approximately $2730). A decisive breakout could set the stage for a 50% advance toward formidable resistance at approximately $3360.
Also read: XRP: 3 Key Warning Signs For Investors
On the other hand, failing to hold above support risks triggering a 30% plunge towards approximately $1512. However, analysts remain optimistic about the second-largest cryptocurrency, given the supportive momentum signals.
In sum, while Bitcoin searches for its next decisive move, LINK, FXS, and ETH appear poised to leave it in the dust in February if their respective technical indicators prove prescient
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