Date: Fri, Jan 31, 2025, 06:00 AM GMT
The cryptocurrency market has been gaining momentum, with altcoins showing signs of strength following Bitcoin’s (BTC) reaction to the FOMC meeting. The decision to keep interest rates unchanged pushed BTC to $106K before a slight pullback to $104K.
Alongside this, a decline in BTC dominance has fueled renewed interest in altcoins like Avalanche (AVAX) and Lido DAO (LDO), both of which are approaching key resistance levels.
Source: Coinmarketcap Avalanche (AVAX)
AVAX is currently trading at $34.67 and is forming a falling wedge pattern, which is often a bullish signal if a breakout occurs. The token recently found support around $32, aligning with the lower boundary of the wedge and the 200-day simple moving average.
Avalanche (AVAX) Daily Chart/ Coinsprobe (Source: Tradingview) Technical indicators show that the MACD is displaying early signs of a potential bullish crossover. If AVAX manages to break above the wedge resistance, the next targets would be $38 and $41. However, failure to break out could lead to another retest of the $32 support level.
Lido DAO (LDO)
Lido DAO is trading at $2.12 and has been moving inside a descending channel for several months. The token recently bounced from $1.40, where it found strong support from both the 25-day and 100-day moving averages. Now, it is testing the upper boundary of the channel, making it a key moment for a potential breakout.
Lido DAO (LDO) Weekly Chart/ Coinsprobe (Source: Tradingview) The MACD indicator suggests increasing bullish momentum, and if LDO breaks above the descending resistance, the first target would be $2.48. A confirmed breakout could push the price toward $4.47. If rejection occurs, the token may remain in the descending channel for a longer period.
Are Breakouts Around the Corner?
With Bitcoin driving overall market sentiment, AVAX and LDO are at critical resistance levels. A breakout would confirm a bullish reversal and could lead to significant gains, but traders should wait for confirmation before making any moves. Whether these altcoins push higher or face another rejection depends on the broader market trend and buyer momentum.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always perform your own research and consult a professional before making investment decisions.
