The altcoin market ended March 14 with a double-digit rally, while inflation in the USA declined 8 times in a row on an annual basis. Bitcoin’s 18% run to $26,400 has shaped a bullish pattern in the largest Binance-listed altcoins.
6 altcoins burning bull signals to watch this week
The first altcoin to watch out for, Uniswap (UNI), has been rising since March 12 as traders flocked to DEXs looking to capitalize on the fluctuating USDC price.
Strong demand contributed to gains while accelerating the rally, causing a massive spike in trading volume. Traders positioned in USDC dominated almost 55% of transactions on Uniswap DEX. The uptrend was bolstered by the Fed’s announcement of a new bank lending facility that aroused investor confidence.
@federalreserve @USTreasury @FDICgov issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors' savings remain safe: https://t.co/YISeTdFPrO
— Federal Reserve (@federalreserve) March 12, 2023
DeFi altcoin UNI rises on US CPI data released on March 14
Like Bitcoin (BTC) and other cryptos, the Uniswap price reacted positively to the US inflation data for February. The data came in at the expected 6.0% from a year ago and breathed a sigh of relief on Wall Street, where many were preparing for a negative surprise. As Cryptokoin.com reported, the Bitcoin price skyrocketed to $26,400 in the minutes following the inflation data.
https://twitter.com/BitcoinMagazine/status/1635619373200097280
As Uniswap price faces critical resistance at $6,362 due to the 50-day EMA, the increase in buying pressure from current levels could extend its upward trajectory.
Breaking the above-mentioned resistance at $6,362, Uniswap price could set the resistance level at $6,581 due to the 200-days EMA or, in a highly bullish situation, it could rise above the $7,212 resistance level to battle the resistance. This level was last tested on February 21, and reaching it represents a 13.45% increase from current levels.
On the other hand, if traders looking to take profits take action now, Uniswap price could cool its rally and correct to the downside. Such a move would cause UNI to lose the critical support at $6,318 due to the 100-day EMA. In desperate cases, a drop below the support intersection between the horizontal line and the ascending trend line of the V-shape pattern can drop to $6,294. A close daily candlestick below this level will invalidate the bullish argument.
On the downside, Uniswap price could decline to the $5,907 support level or, in extreme cases, revisit the $5,373 low where the most recent rally sprouted. A drop represents a 15.62% drop from current levels.
Filecoin (FIL) price moved after this news
Filecoin has made a major breakthrough with the launch of the Filecoin Virtual Machine (FVM). FVM is still a small part of the company’s larger roadmap. Commenting in the same direction during the launch, the company said:
The launch of FVM solidifies Filecoin’s position as a Layer-1 Blockchain uniquely poised to power the open data economy. Many leading Web3 projects have announced plans to use, support or integrate FVM to upgrade their services.
https://twitter.com/Filecoin/status/1635707075983540225
FVM is also designed to be fully Ethereum compatible for DeFi and cross-chain solutions. FVM also benefits FIL token holders as the blockchain can now support DeFi lending protocols. These protocols will soon allow token holders to contribute their own FILs to grow Storage Provider operations via smart contract-based protocols.
Altcoin price rises in double digits with FVM launch
The positive atmosphere in the market as well as the uptrend from the launch of FVM pushed Filecoin price up more than 18% on the charts yesterday. March 14 saw the FIL reach $7,598 and then close at $6,785.
The market-wide rally brought Filecoin price closer to the $7,877 resistance. This move was a breakout that would allow the FIL to start a recovery rally. Had it been successful, it would have reached the year-to-date high beyond the $9 target according to technical analysis.
However, the bullish argument will be invalidated if the support level at $6,590 is lost and Filecoin price drops below the critical support level at $5,466. According to analysts, its price not only slumped below $5, but it could also drop to a two-month low of $4,164.
Stacks (STX) shows over 20% gain on daily chart
Stacks (STX) is among the cryptocurrencies to record impressive gains this year, with monthly gains of over 168%. As of last week, however, it has seen price drops for days in a row before posting its current gains. The decline was partly due to the uncertainty surrounding the CPI data and the Fed’s rate hikes.
The rise in popularity of Ordinals NFTs is driving demand for STX and was one of the catalysts that fueled the market rally on March 14. According to historical data, the STX price went up from $0.9033 on March 3 to $0.5754 on March 10. However, it has been rising faster since March 10, keeping the bulls afloat to maintain the $1 price target.
STX price is currently trading in the green by more than 20% over the last 24 hours. It is also rapidly developing Nakamoto Release and sBTC, which will unlock three key features. Stacks Nakamoto Edition will enable a Bitcoin economy, allowing developers to write on Bitcoin and scale network speed and capacity. STX is currently in an open-ended rally and it is being watched at what levels it will find resistance above $1.
Altcoin selections that can be bought in the market rally
In this category, let’s list 3 altcoins that have been in a downtrend in recent months and have turned bullish again in the last rally. The first notable altcoin Ethereum (ETH) is trading around $1,680 with a slight correction today, after rising to the $1,750 region yesterday.
Meanwhile, traders waiting for long entry opportunities can expect a break above the resistance of the megaphone formation below. The target of the potential breakout identified by analyst Brian Bollinger will be the $2030 region.
Left (LEFT)
In the midst of the early March rally, Solana price turned bearish from the critical $20 support on March 8. Although this collapse is expected to trigger a major drop, the recent recovery in the market has pulled SOL price back from the $16 support.
The resulting rally undermined the aforementioned decline and pushed the price above the $20 target. Currently, SOL price is trading at $21.18 with an intraday gain of 2.36%. With continuous buying, the Solana price may increase by 28.5% and go down.
OCD (OCD)
OKB, the native token of the OKX exchange, has shown a continuous parabolic uptrend on the daily time frame since June 2022. However, amid the sell-off in the crypto market in February and early March, it witnessed a minor correction phase and dropped to the $38.85 support.
OKB then managed to recover from $38.85. This positive news shows that investors are willing to buy OKB at the bottom price. The price is currently trading at $47.65, down 5% after the March 14 rally. Buyers need to clear the $48.2 resistance zone for higher highs.
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