Both altcoins showed similar on-chain signals as Bancor (BNT) before their 70% price surge.
Cartesi (CTSI) price is still following a descending resistance trendline which was rejected two days ago.
Holo (HOT) price has been trading near the end of a long-term bullish pattern since its all-time high.
The price action of these two bullish altcoins is similar to that of Bancor (BNT) before the rally.
Bancor (BNT) prices surged 70% over the weekend, reaching a 19-month high in the process.
Cartesi (CTSI) Price Attempts a Breakout
CTSI is the first of two altcoins that could see increased volatility.
This is because there has been activity in the network for a long period of time. More specifically, CTSI has experienced high transaction volume, high active addresses, and a large number of whale transactions.
This also includes the lower age of the destroyed coins. BNT also showed similar signs before its rise.
Looking at the price action, CTSI price has been trading below a descending resistance trendline since May. Most recently, this line was rejected on October 8, forming a long upper shadow.
The shadows also validate the $0.0135 horizontal area as resistance.
For the CTSI to start an upward movement, it must break above the descending resistance trendline and the $0.135 area. If this happens, the price could reach the $0.180 resistance area, which is 40% higher than the current price.
On the other hand, failure to do so could result in a 25% drop to the $0.100 horizontal support area.
Holo (HOT) Nears the End of Bullish Pattern
In the case of HOT, indicators that show the potential for upcoming volatility include a large number of whale transactions, an accumulation of wallets holding between $100,000 and $1,000,000 worth of tokens, large exchange inflows, and a low lifespan of coins being destroyed.
As for popular price action, the bullish altcoin has been trading within a falling wedge pattern since reaching its all-time high in April 2021. A falling wedge is considered a bullish pattern, which means it usually leads to a breakout.
The hot price is approaching the confluence between the support and resistance trendlines. Hence, a decisive move above the pattern is expected soon.
The support line of the wedge also coincides with the $0.00095 horizontal support area, adding to its significance.
Although the price is in a bullish pattern, the weekly RSI is bearish. When assessing market conditions, traders use the RSI as a momentum indicator to determine if the market is overbought or oversold and decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, bulls still have the advantage. If the reading is below 50, the opposite is true.
The RSI is below 50 and declining, both of which are considered signs of a bearish trend.
Therefore, whether the HOT price breaks out of the wedge or breaks out of the $0.0095 horizontal area will determine the direction of the future trend.
If broken, HOT could rise to the next resistance at $0.00250, which would represent a 150% increase from the current price.
On the other hand, a breakdown could result in a 70% drop to $0.00030.