The crypto market in a testing phase: A calm before the storm?
Despite recent downward volatility driven by macroeconomic uncertainties and geopolitical tensions, the market is attempting a fragile recovery. Bitcoin (BTC) is hovering around $67,000, while Ethereum (ETH) is struggling to hold above the psychological support of $2,000. This climate of anticipation is instilling a neutral to cautious sentiment among investors.
However, looking at the Altcoin Season Index chart, caution is advised. Altcoins are at a crossroads between pushing toward new highs or dropping to new lows. Essentially, this index represents the outperformance of the top 100 altcoins compared to Bitcoin. Currently, altcoins are demonstrating a resilience that is worth noting and monitoring closely.
This consolidation phase could be the perfect springboard for certain altcoins. As the monthly close approaches, traders are scanning the charts for breakout setups. Currently, TAO is trading in a median zone of $325, FET is hovering near $0.24, CHZ is holding steady at $0.04 and DEXE is showing strong resilience around $7.40.
These current price levels place these four assets at a crossroads. A monthly close above their respective resistances could trigger a massive rally, thereby attracting fresh capital into these specific ecosystems.
TAO and FET: Is artificial intelligence ready for a new bull run?
The artificial intelligence sector remains one of the most powerful narratives of this cycle. Bittensor (TAO), after an impressive climb, is currently consolidating in a key zone. If buyers manage to break the immediate resistance at $390, a bullish scenario could propel the price toward $540. Nevertheless, TAO is overbought on the daily timeframe and is showing a bearish divergence on the RSI. It is therefore possible that TAO will consolidate for an extended period below this $390 mark. A pullback to $200 in the coming months is even a possibility.
The same goes for Fetch.ai (FET), which is showing a bearish divergence on the RSI as well as on its 9 hour CVD. The $0.28 resistance is crucial to break in order to validate a new rally.
Furthermore, the trendline has a high probability of being liquidated in this overbought context.
However, traders must remain cautious. In the event of a bearish scenario, a breakdown of current supports would invalidate these bullish structures, forcing a deeper retracement before any new upward attempt. A DCA buying strategy when the HTF RSIs approach the oversold zone is an option to optimize your entry and force yourself to be patient.
CHZ and DEXE: How high can these altcoins soar?
Chiliz (CHZ), the leader in fan tokens, offers higher potential for a short term upside. Indeed, it has executed the perfect breakout in addition to displaying 4 bullish CVD divergences on the daily chart. A prolonged rise up to $0.5 in the coming days is likely. It is important to remain cautious because the $0.45 zone is a strong resistance where the price could be pushed back down.
DeXe (DEXE), on the other hand, is looking extremely bullish with a weekly buyer order block and a major breakout underway. The chart structure indicates that the price could continue its ascent in the coming weeks up to $15.3, the upper zone of the liquidity pocket according to the VPFR. This represents a potential increase of nearly 72% for the upcoming weeks.
While these four cryptocurrencies are currently at crucial technical levels, the direction the market takes in the coming days will be decisive. Will buyers have the strength to turn these signals into genuine bullish surges, or will we witness another brutal rejection?
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