These three altcoins are showing a bullish formation against Bitcoin (BTC) and could outperform it in February.
Despite the decline in Bitcoin (BTC) since January 14th, these altcoins are showing positive price movements. Will it be able to outperform BTC in February?
Chainlink (LINK) price breaks through long-term resistance
Weekly technical analysis shows that LINK price has fallen below the descending resistance trend line since June 2020. This decline led to a low of ₿0.00018 in June 2023.
At first glance, this move appeared to trigger a breakdown from the $0.00023 support area, but LINK quickly regained the support area and turned the decline into a deviation (red circle).
LINK price broke out of the trend line after more than 1,100 days and reached a high of ₿0.00045 in November before falling. The subsequent decrease validated the ₿0.00042 region as resistance.
Despite the drop, LINK has regained its footing and is attempting another breakout. If successful, the price could rise 100% to the next resistance at ₿0.00075.
The Daily Relative Strength Index (RSI) confirms the rise. Traders use the RSI as a momentum indicator to assess whether the market is overbought or oversold and to assess whether to accumulate or sell assets.
Bulls are still in favor if the RSI reading is above 50 and trending up, but vice versa if the reading is below 50. The RSI is above 50 and increasing. Both are bullish signs.
Despite this bullish LINK price prediction, failure to break above ₿0.00042 could result in a 40% decline to the nearest support at ₿0.00022.
Read more: What is Chainlink (LINK)?
Frax Share (FXS) accumulation completed
FXS price had fallen below the descending resistance trend line since the all-time high of ₿0.0012 in early 2022. The trend line was validated several times and led to the November 2023 low of ₿0.00013.
Prices have risen since then and broke out of the trend line two weeks ago. At that time, the trend line had held for nearly 730 days.
Prior to the breakout, the weekly RSI produced a bullish divergence for over six months. Such divergences are rare and often lead to a reversal of a bullish trend.
If FXS continues to rise, the price could reach the ₿0.00048 resistance, which is 100% above the current price.
Despite this bullish FXS price prediction, a 30% drop to ₿0.00016 is possible if the weekly close price falls below the resistance trend line.
read more: What are the implications of real-world asset tokenization?
Ethereum (ETH) Generates Bullish Divergence
The last altcoin that can outperform BTC is ETH.
ETH price has risen along the 1,600-day upward support trend line. Most recently, the trend line was validated in his early January (green icon), creating a big bullish candlestick.
Interestingly, the weekly RSI has generated a bullish divergence and moved out of oversold territory. Previously, ETH caused such a divergence when an upward movement started.
ETH price confirms the bullish trend reversal by breaking out of the descending resistance trend line (dashed line). It then increases by 50% until the next resistance at ₿0.08.
Despite the bullish prediction for ETH price, if the weekly close price falls below the ascending support trend line, it could drop 30% to the nearest support at ₿0.036.
read more: How can I buy Ethereum (ETH) with a credit card?
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