As the altcoin market sees a recovery, Real World Assets (RWA) is becoming a notable factor for traders. For those looking to diversify their portfolios, this analysis highlights some RWA-based altcoins that could yield gains in October.
Pendle (PENDLE)
PENDLE, the utility token of the Pendle protocol, has seen a strong price surge, up 27% over the past week, making it one of the key RWA altcoins to watch in October. The PENDLE price has maintained a strong uptrend, trading above an ascending trendline in recent weeks.
This trend line shows steady market demand and bullish momentum. If PENDLE continues to hold above this line, the key resistance at $6.31 will be the main target in the coming weeks. However, if selling pressure increases, the price could drop below the trend line, potentially reaching $3.16.
Additionally, consider the upcoming token unlocks. The Pendle Protocol will begin unlocking a new amount of tokens starting October 2, with 31,210 PENDLE tokens being unlocked every day for seven consecutive days.
While this issuance is not large enough to cause a significant drop, it does increase the circulating supply, which could put some downward pressure on the token's value.
Avalanche (AVAX)
AVAX, the native token of the Avalanche Layer-1 blockchain, has gained 8% in value over the past week, trading at $27.94 at the time of writing. According to the daily chart, AVAX is approaching a key resistance level at $28.66, a level that has held since July.
The Balance of Power (BoP) indicator, which measures the strength of buyers versus sellers, suggests that a breakout above this level could happen soon. At the time of writing, AVAX’s BoP is 0.64, signaling that buyers are currently in control of the market. If this buying pressure continues, AVAX could surge to $55.07, a significant price target.
However, if the $28.66 resistance fails to be overcome, the price could decline towards $17.33, as weak buying pressure could push AVAX back towards lower support levels.
VeChain (VET)
With the support of the VET token, VeChain has emerged as a pioneer in real-world enterprise applications. The recent growth in the value of the token makes it one of the important RWA assets to watch. Currently trading at $0.02, VET has increased by 14% over the past week, showing potential for continued growth.
On the daily chart, VET has broken out above a descending triangle, signaling an uptrend. Therefore, the VET price could continue to rise towards $0.027 in the next few days.
If the price does not fall sharply from this level, it means that the bulls are buying on small dips. After that, VET price could continue to rise towards the 0.5-0.618 Fib zone at $0.037-$0.041.
Ondo (ONDO)
ONDO is currently trading at $0.78, having gained 24% in value over the past week. The increased demand for the altcoin is reflected in the Relative Strength Index (RSI), which tracks market conditions to determine whether an asset is overbought or oversold. At the time of writing, ONDO’s RSI is at 66.87, indicating strong buying activity and suggesting the potential for a sustained rally.
If the current uptrend continues, ONDO price could reach $0.87 in the short term. Further upside momentum could push the price to $1.09 if the rally continues. However, if selling pressure increases, ONDO price could face a decline, potentially falling to $0.50.
Chainlink (LINK)
In addition to the general market sentiment, Chainlink’s (LINK) 10% increase in value over the past week was driven by increased user activity on the network. On-chain data shows a 13% increase in the number of unique active addresses trading LINK over the past seven days.
Additionally, demand for the altcoin has increased, with the number of new addresses trading LINK surging 29% over the same period. If this demand remains strong, LINK could continue to reach $15.47.
However, if accumulation slows down, a correction to $11.24 is possible. Traders need to watch for signs of continued demand or a weakening of accumulation activity.
