Could ‘Uptober’ Bring Profits for MKR, AAVE, RUNE, and INJ Alongside Bitcoin? October often witnesses a surge in Bitcoin’s performance, potentially paving the way for gains in MKR, AAVE, RUNE, INJ, and other alternative cryptocurrencies.
While Bitcoin enjoyed an impressive 80% rise during the initial two quarters of 2023, it experienced a setback in the third quarter, culminating in an approximately 11% decline by the end of September. However, there is an optimistic aspect for the bullish investors, as September marked the first positive monthly closure since 2016.
In October, buyers will aim to capitalise on this growing momentum, given the historically bullish nature of the month. According to data from CoinGlass, only two years, 2014 and 2018, have witnessed negative monthly returns for Bitcoin in October since 2013. Although past performance does not indicate future outcomes, traders can use this data as a valuable reference point for crafting their strategies.
Crypto market data daily view. Source: Coin360
Bitcoin’s recent resilience has sparked interest in altcoins and encouraged some to challenge their overhead resistance levels, signalling the potential onset of a robust recovery. Should Bitcoin extend its relief rally to $28,000, this bullish momentum could gain even more traction.
However, it’s important to note that not all altcoins are poised for a significant upward trajectory. The cryptocurrencies demonstrating strength are the ones likely to lead the recovery. In this analysis, we will examine the charts of the top 5 cryptocurrencies that have the potential to outperform soon.
Bitcoin (BTC) price analysis
Bitcoin has been trading above the moving averages since Sep. 28, which is a positive sign. This shows that the advantage is gradually tilting in favour of the buyers.
BTC/USDT daily chart. Source: TradingView
The bears are trying to stall the rally near $27,500, but the bulls have not given up much ground. This shows that every minor dip is being purchased. This increases the odds of a break above $27,500. The BTC/USDT pair could retest the crucial overhead resistance at $28,143. This level may again attract aggressive selling by the bears.
If the price turns sharply from $28,143, the pair could retest the 20-day exponential moving average ($26,630). A strong bounce off this level could kick the price above $28,143. The pair may subsequently climb to $30,000.
This bullish view will be negated soon if the price turns down and dives below the solid support at $26,000.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is taking support at the 20-EMA. This indicates that the bulls are trying to take charge. However, the bears are unlikely to give up easily and will try to halt the recovery in the zone between $27,300 and $27,500. The sellers must yank the price below the 20-EMA to seize control.
Conversely, if bulls pierce the overhead resistance at $27,500, it will pave the way for a possible rally to $28,143. This level may witness a tough battle between the buyers and sellers.
Maker (MKR) price analysis
Maker broke and closed above $1,370 on Sep. 26, indicating the start of a new uptrend. When an asset uptrend, traders tend to buy on dips.
MKR/USDT daily chart. Source: TradingView
The bears tried to stall the up-move at $1,600, but the bulls purchased the dip at $1,432. This indicates that the sentiment remains positive, and lower levels are being bought. If bulls propel the price above $1,600, the MKR/USDT pair could rally to $1,760 and then sprint to $1,909.
Contrary to this assumption, if the price turns sharply and skids below $1,432, it could make room for a retest of the breakout level at $1,370. The bears must yank the price below this support to indicate that the uptrend may be over.
MKR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears fiercely protect the overhead resistance at $1,600. If bulls want to keep their chances of continuing the uptrend alive, they must buy the dips to the 20-EMA.
If the price snaps back from the 20-EMA, the buyers will once again try to overcome the obstacle at $1,600 and start the next leg of the uptrend. Alternatively, a collapse to $1,432 and then to the 50-simple moving average may begin if the pair drops below the 20-EMA.
AAVE price analysis
Aave is trying to break above the long-term downtrend line, indicating a potential trend change. The rebound off the 20-day EMA ($62.42) on Sep. 28 suggests a change in sentiment from selling on rallies to buying on dips.
AAVE/USDT daily chart. Source: TradingView
The bears will try to stall the recovery at the downtrend line, but if bulls do not allow the price to slip back below the 20-day EMA, it will increase the likelihood of a break above it. AFTER THAT, the AAVE/USDT pair could start an up-move toward $88.
The 20-day EMA is a crucial support to watch on the downside. If this level cracks, it will suggest that bears remain active at higher levels. That could increase the price to the 50-day SMA ($58.82).
AAVE/USDT 4-hour chart. Source: TradingView
Both the upsloping 20-EMA and the relative strength index (RSI) near the overbought zone indicate that the bulls are in command. The rally may face selling at the downtrend line, but the bulls will try to arrest the decline at the 20-EMA.
A strong rebound off the 20-EMA will open the doors for a possible rise above the downtrend line. The pair may first rally to $75 and next to $80. The bears must sink and sustain the price below the 20-EMA to break the tempo.
THORChain (RUNE) price analysis
THORChain has reached the overhead resistance at $2 for the third time within the past few days. The repeated retest of a resistance level tends to weaken it.
RUNE/USDT daily chart. Source: TradingView
If bulls do not give up much ground from the current level, it will improve the prospects of a rally above $2. If that happens, the RUNE/USDT pair could rise to $2.28 and subsequently to $2.78.
This optimistic view will be invalidated soon if the price turns down and plunges below the moving averages. Such a move will suggest that the bulls have given up, and the pair may drop to $1.37.
RUNE/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are selling near the overhead resistance at $2, but a positive sign is that the bulls have not allowed the price to skid and sustain below the 20-EMA. This suggests that lower levels are attracting buyers.
If bulls push and maintain the price above $2, it will signal the start of a new uptrend. The pair could then surge toward $2.35. On the contrary, if the price turns down and breaks below the 20-EMA, it will indicate the start of a deeper correction to the 50-SMA.
Injective (INJ) price analysis
Injective has been swinging inside an extensive range between $5.40 and $10 for several days. The price action inside a field can be random and volatile, but trading opportunities may arise when the boundaries are far apart.
INJ/USDT daily chart. Source: TradingView
The moving averages have completed a bullish crossover, and the RSI is in positive territory, indicating that bulls have the upper hand. The INJ/USDT pair could rise to $8.28, where the bears may mount a strong resistance. If bulls overcome this barrier, the pair could gain momentum and soar toward $10.
Bears must defend the overhead resistance and quickly drag the price below the moving averages if they want to prevent the upside. The pair could then retest the immediate support at $6.36.
INJ/USDT 4-hour chart. Source: TradingView
Both moving averages are sloping up on the 4-hour chart, and the RSI is in the overbought territory, suggesting that the bulls have a slight edge. The rally could reach $8.28, which is likely to act as a substantial hurdle.
On the downside, the first support is at the 20-EMA. A bounce off this level will indicate that the uptrend remains intact. Contrarily, a break below the 20-EMA will signal that the bulls are booking profits. That may pull the price down to the 50-SMA.
