The price of Bitcoin is hovering near a critical support level, far from its performance at the beginning of October. Recent developments have had a negative impact on it. As of the time of writing, BTC is at $27,400, and closes below $27,200 could initiate a move towards $26,800 and $25,000. Despite all these negatives, two popular cryptocurrencies, BNT Coin and CTSI Coin, are sending signals similar to the impressive rally of BNT Coin before.
Bancor (BNT) experienced a 70% price increase in a short period of time. Cartesi (CTSI) is also receiving signals similar to those seen in Bancor (BNT) before its upward movement. This is due to the long-standing network activity that has been attracting attention. Specifically, the high trading volume and increase in active addresses for CTSI are noteworthy. Moreover, there is an increase in whale transactions as well.
When we add the change in average coin age to the price increase, we see a CTSI Coin chart that resembles the pre-rise situation of BNT Coin.
So, what is the technical situation? The CTSI price has fallen below the declining trend line since May. This part is similar for many altcoins. As early as October 8th, this line was rejected and a long upper wick was formed. Bulls confirmed $0.135 as resistance.
If an upward movement is to begin, the first expectation is to overcome this resistance level. Afterwards, we may see a new upward movement towards $0.180. But what if the opposite happens and the price starts to fall? In this case, a decrease of around 20% to $0.1 could be expected.
A similar situation is also present for HOT Coin. High and increasing whale transactions, whale accumulation, and average coin age. So, what is the technical situation? In April 2021, this altcoin reached its all-time high level. However, it then fell into a descending wedge pattern. A descending wedge is considered a bullish formation, which usually leads to breakouts, but it was delayed in this case.
Now, the price is approaching the intersection point of the support and resistance trend lines. So, if there is to be a breakout, it could happen soon. However, there is a downside to the bullish outlook as RSI is rejecting it. Moreover, considering the negativity in BTC price, it could be challenging for CTSI Coin.
Due to all these reasons, there may be an increase in volatility in HOT Coin price. However, whether it will break out of the wedge or lose its support at $0.0095 will determine the direction. If there is a breakout and the price falls below $0.00095, it could roll down to $0.00030. But in the bullish scenario, the target is a 250% increase to $0.00250.