October, which has historically been a bullish month for the cryptocurrency market, did not start well this time. However, as the month progressed, several altcoins found their footing and showed promising potential.
In this analysis, we highlight three altcoins to watch closely in the third week of October 2024. These picks, backed by prominent reasons, include Ethena (ENA), Eigner (EIGEN), and Avalanche (AVAX).
Ethena (ENA) Breakout Imminent as SOL Proposal Gains Momentum
ENA, the native token of the dominant dollar savings protocol, tops the list of altcoins to watch this week. In the last 24 hours, its price has increased by 16.54% and it is trading at $0.39.
This price surge is linked to Ethena’s proposal to add Solana (SOL) as a backing instrument for USDe, its synthetic dollar-denominated stablecoin.
“The proposed investment will be scaled out gradually in consultation with the Risk Committee, taking into account the shorter trading history of SOL perpetual futures, lower liquidity, and lower historical funding rate data. However, the ~$2bn of open interest across the venues where Ethena currently hedges, combined with more favorable funding to date in 2024 compared to BTC and ETH, presents an attractive opportunity to further align Ethena and USDe with one of the largest crypto ecosystems,” Ethena Ladis said in the official announcement.
According to the daily chart, ENA is about to break out of the consolidation zone around $0.40. A look at the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover, which could confirm an extended uptrend.
The MACD measures the direction of the trend using the positions of the 12- and 26-period exponential moving averages. When the longer average crosses the shorter average, the trend is down. However, as shown below, the 12-period exponential average (blue) has crossed the 26-period exponential average (orange), indicating that buyers are in control.
As long as the situation remains the same, Ethena price could rise above the $0.50 resistance level. Once that happens, the token could climb to $0.77 before attempting to rise above $1 again. On the other hand, if it faces widespread selling pressure, Ethena could drop to $0.20.
EIGEN may rise after the open.
Second on the list is Eigner (EIGEN), which is set to open 11 million tokens on October 15. After the last open, EIGEN surged 20%, sparking speculation of a similar outcome this time around.
However, between October 12 and 13, EIGEN saw a 9.19% decline. Today, the token has seen a slight bounce. While the cryptocurrency may face resistance at $3.73, the support at $3.58 appears strong, which bulls may exploit to overcome the hurdle.
If this happens, EIGEN price could jump to $3.97 before the end of the week. However, traders should be careful. If the demand for the token after the open is weak, EIGEN could drop to $3.35.
Avalanche Reverse Buy Boosts AVAX Price Prediction
This list of altcoins would not be complete without AVAX. The main reason for including the token is the decision of the Avalanche Foundation to purchase 1.97 million AVAX from Terraform Labs, also known as the Luna Foundation Guard (LGF).
In April 2022, the foundation sold the tokens for $45.50 million. Today, those tokens are worth nearly $60 million. On October 11, the Avalanche Foundation announced that it had purchased the tokens again and is awaiting approval from the U.S. Bankruptcy Court in Delaware.
“This action ensures that LFG does not violate the restrictions imposed in the original agreement on the use of the tokens and protects the tokens from the complications of a liquidation by the trustee, while returning 1.97 million AVAX to the Foundation’s holdings. This enhances the Foundation’s ability to support the continued growth and development of the Avalanche ecosystem,” the Foundation revealed in a post on X.
On the daily chart, AVAX price is close to crossing the $30 mark for the first time in October. If this happens, it will help the altcoin rise above the downtrend line and push the price higher.
The Money Flow Index (MFI), which measures the level of capital injection, also supports this view. The MFI reading has crossed the neutral 50.00 level, indicating increased buying pressure.
If this trend continues, AVAX price could rise by 30% to $38.18 in the short term. If the buying pressure decreases, the prediction could be invalidated. If this happens, AVAX could drop to $24.68.
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