The third week of August 2024 has surprised the crypto market, with some of the biggest altcoin gainers being tokens that previously suffered significant losses.
Notably, many altcoins within the top 100 by market capitalization are closing the week in the green. Here’s a look at the top three outperformers, what drove their gains, and what might come next.
Polygon (MATIC)
Last Friday, Polygon’s (MATIC) price was $0.40. As of now, the token has surged by 32.50% over the past seven days, reaching $0.53, making it one of the top-performing altcoins.
MATIC’s impressive recovery is likely linked to increased whale accumulation. Typically, a rise in large-scale purchases by whales boosts a cryptocurrency’s price, and that seems to be the case here. Additionally, anticipation surrounding the upcoming token migration to POL may have sparked renewed demand and optimism.
Technically, MATIC’s breakout was driven by a falling wedge formation. A falling wedge is a bullish pattern where two downward-sloping trendlines — representing lower highs and lower lows — converge. As buyers step in to slow the decline, a reversal occurs, as seen with MATIC.
The Moving Average Convergence Divergence (MACD) is also positive, confirming upward momentum. The MACD, a trend and momentum indicator, signals bullish momentum when in positive territory, supporting the ongoing price recovery.
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If the trend continues, MATIC could extend its rally toward $0.56. Following the POL migration on September 4, a further jump to $0.672 is possible. However, if the event triggers a “sell the news” reaction, MATIC’s price might drop to $0.46 instead.
Artificial Superintelligence Alliance (FET)
After several weeks of decline, FET’s price increased by 26% within the last seven days, helping it to make this coveted list. On August 3, the token fell below $1 despite cheers around the merger with the Artificial Superintelligence Alliance.
The initial stages of the merger were challenging. However, increased accumulation since the last phase began has been crucial to the recent price pump.
FET is currently trading at $1.07, with the recent uptick likely fueled by increased capital inflow. On the daily chart, the Money Flow Index (MFI) is at its highest level since the start of August. This surge indicates that the price rise is supported by significant buying volume, reflecting strong investor interest and market participation.
If sustained, the altcoin’s price could hit a cumulative 69% increase from the bullish defense at $0.78. However, the token also faces potential resistance at $1.15. If bulls fail to break above this region, FET’s price might retrace to $0.92.
BitTorrent (BTT)
BitTorrent (BTT), a cryptocurrency designed to support the largest decentralized peer-to-peer (P2P) data-sharing network, ranks among the biggest altcoin gainers this week. The coin’s recent surge is largely tied to the broader performance of Justin Sun-related cryptos.
Sun, the founder of the Tron blockchain, acquired BitTorrent in 2018. Since then, BTT’s price has often mirrored developments involving Sun. This time, the launch of SunPump, rising meme coin prices on Tron, and TRX’s price increase contributed to BTT’s strong performance. On August 21, BTT’s trading volume spiked by over 200%, signaling renewed interest in the token.
Currently, BTT trades at $0.00000093, its highest level since June 16. Two days ago, it briefly hit $0.0000010, reaching a historically significant supply zone that requires substantial buying pressure to break. As seen on the daily chart, bulls failed to maintain momentum at that level, leading to a rejection.
The Relative Strength Index (RSI) also hit the overbought threshold of 70.00, prompting a retracement. The RSI is a key indicator that measures market momentum and identifies overbought or oversold conditions.
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Readings below 30.00 on the Relative Strength Index (RSI) indicate that an asset is oversold, while those above 70.00 suggest it is overbought. Additionally, the Cumulative Volume Delta (CVD), which tracks buying and selling pressure, shows that sellers currently dominate.
If this trend persists, BTT’s price could decline to $0.00000085. However, bullish sentiment surrounding Sun-related altcoins might reverse the situation, potentially pushing the token’s value up to $0.00000098.
Disclaimer
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