Recent analysis shows that while the price of Bitcoin has been declining since January 14, three alternative cryptocurrencies (altcoins) โ Chainlink (LINK), Frax Share (FXS) and Ethereum (ETH) โ are showing positive momentum that could allow them to outperform BTC. in February.
Let's dig deeper to find out why these altcoins have a chance to eclipse Bitcoin.
Chainlink breaks long-term resistance
According to an analysis, Chain The price has been falling below a long-term descending resistance line since June 2020, bottoming at around $7.56 last June. Although it briefly broke the support around $9.66, LINK managed to reclaim that level shortly after and turn the drop into a reversal.
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Despite another pullback, LINK appears to be gearing up for a second attempt to break through around $17.64. If successful, analysts project that the token's price could rise 100% to the next ceiling of approximately $31.5. Additionally, LINK's daily Relative Strength Index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, continues to support further gains as it remains above 50.
Both factors point to bullish LINK price action relative to BTC. However, a failure to eclipse the resistance around $17.64 risks triggering a 40% drop towards the support around $9.24, tempering LINK's positive outlook.
Bottom of Frax Sharing Forms
Like LINK, FXS price has also been capped by a descending resistance line since marking its all-time high of around $50.4 in early 2022. Multiple resistance tests of the trendline eventually resulted in FXS is expected to bottom at approximately $5.46 in November 2023.
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In the months leading up to the bullish breakout, the FXS weekly RSI indicator formed a bullish divergence, a sign of strengthening positive momentum. Now trading above resistance, analysts predict that FXS could rise another 100% to challenge the next hurdle around $20.16.
Ethereum flashes reversal signals
Rounding out the trio of best-performing altcoins, ETH price has closely followed an ascending support trend line for over 1,600 days. After retesting this critical support in early January, ETH It bounced sharply upwards to print a large bullish candle.
To confirm its bullish trend change, analysts want to see Ethereum conquer the nearby descending resistance (currently around approximately $2730). A decisive breakout could set the stage for a 50% rally towards formidable resistance around $3,360.
Also read: XRP: 3 key warning signs for investors
On the other hand, failure to hold above support risks causing a 30% drop towards approximately $1,512. However, analysts remain bullish on the second-largest cryptocurrency, given signs of supportive momentum.
In short, as Bitcoin looks for its next decisive move, LINK, FXS and ETH look set to leave it behind in February if their respective technical indicators prove prophetic.
