October, which has historically been a boom month for the cryptocurrency market, did not start well this time around. However, as the month progressed, several altcoins found their footing and showed promising potential.
In this analysis, BeInCrypto highlights three crypto assets to watch closely this week. Those chosen, backed by notable reasons, include Ethena (ENA), EigenLayer (EIGEN) and Avalanche (AVAX).
Athena (ENA)
ENA, the native token of the dollar-dominated savings protocol, tops the list of cryptocurrencies to watch this week. On Monday (14), its price increased by 16.54% while trading at US$0.39.
This price increase is linked to Ethena's proposal to add the Solana network as a backing instrument for USDe, its synthetic dollar-denominated stablecoin.
“The proposed allocation would be scaled slowly in consultation with the Risk Committee, considering SOL perpetual futures’ shorter trading history, lower liquidity, and less historical funding rate data. However, the approximately $2 billion of open interest in venues where Ethena currently executes hedged transactions, combined with more favorable funding so far in 2024 relative to BTC and ETH, presents a compelling opportunity to further align Ethena and USDe with one of the largest crypto ecosystems,” Ethena Lads said in the official announcement.
According to the daily chart, ENA is about to break out of the accumulation zone around $0.40. An analysis of the MACD shows a bullish crossover, possibly validating a prolonged uptrend.
Ethena daily price analysis. Source: TradingView
As long as this holds, the price could rise above the $0.50 resistance. Once this happens, the token could rise to $0.77 before attempting to break above $1 again. On the other hand, if it faces widespread selling pressure, it could drop to $0.20.
OwnLayer (OWN)
In second place is EigenLayer (EIGEN), which is set to unlock 11 million tokens this Tuesday (15). Following the latest unlock, EIGEN rose 20%, raising speculation about a similar outcome this time around.
However, between October 12 and 13, the asset recorded a 9.19% drop. While the altcoin may face resistance at $3.73, support at $3.58 appears to be strong, which the bulls could capitalize on and overcome the hurdle.
EigenLayer 4-hour price analysis. Source: TradingView
If this happens, EIGEN could jump to $3.97 before the end of the week. However, traders should remain vigilant. If demand after the unlock is weak, the price could drop to $3.35.
Read more: 5 Token Unlocks to Watch This Week
Avalanche (AVAX)
This list of altcoins would be incomplete without AVAX. The main reason for the token’s inclusion is the Avalanche Foundation’s decision to buy back 1.97 million AVAX from Terraform Labs, also known as Luna Foundation Guard (LFG).
In April 2022, the foundation sold the tokens for $45.50 million. Today, the tokens are worth nearly $60 million. On October 11, the Avalanche Foundation announced that it had repurchased the tokens and is awaiting approval from the U.S. Bankruptcy Court in Delaware.
“This action ensures that LFG does not violate the token usage restrictions of the original agreement and protects the tokens from the complexity of a receivership liquidation, while returning 1.97M AVAX to the Foundation’s assets. This further enhances the Foundation’s ability to support the continued growth and development of the Avalanche ecosystem,” the Foundation revealed via a post on X.
Avalanche daily price analysis. Source: TradingView
On the daily chart, the price is close to breaking the $30 mark for the first time in October. If achieved, this would help the altcoin overcome the downtrend line and push the price higher.
The Money Flow Index (MFI), which measures the level of capital inflows, also supports this outlook. The MFI reading crossed above the neutral 50.00 level, indicating an increase in buying pressure.
If this trend continues, the asset could increase by 30% to $38.18 in the near term. Should buying pressure ease, the forecast could be invalidated. If this happens, AVAX could fall to $24.68.
The article 3 Promising Cryptocurrencies to Keep an Eye on This Week appeared first on BeInCrypto Brazil.
