In the backdrop of the market anticipating the arrival of the altcoin season, an economist who goes by the pseudonym Mikybull Crypto stated on an X post that the Bitcoin dominance is breaking downwards, after it has been on an extended uptrend.
Supplementing this bearish view, the Moving Average Convergence Divergence (MACD) line has fallen below the Simple Moving Average (SMA) which means that the bears are active in the market.
The crossover of the MACD and the SMA could not have come in a better time. This timing of the crossover is special because during the build up to the altcoin season in 2021, the MACD crossed below the SMA. By showing the similarities between the two, the analyst is trying to forecast that the altcoin season might be round the corner.
As the market braces to go berserk, with altcoins spiking, there are three altcoins that are being accumulated in the market. Ethena, Pudgy Penguin (PENGU) and Ethereum (ETH) are the three cryptocurrencies that have been on an uptrend and are on the trending list on Coingecko.
Ethena (ENA) reaches its maximum potential, is there more gas in the tank?
After breaking out from a bull flag, Ethena seems to have reached its maximum potential. The maximum potential? Usually, when a token breaks out from a bull flag, it rises by the height of the flagpole. Ethena has currently reached the maximum height of the flag, and the RSI indicator has reached the overbought region. Since Ethena is in the overbought region, there could be a retracement coming soon. As such, ENA might fall from $0.69 to $0.60 during the correction. When observing closely, the ENA’s retracements have been getting smaller. This goes on to show that the bears are losing power in the market. Therefore, the bulls may take ENA even further higher.
Pudgy Penguins (PENGU) about to breakout from bullish pennant
The Pudgy Penguins is a collection of flightless bird NFTs that was launched in 2021. In recent time, there was rumor that PENGU bought the Open Sea NFT market place. However, a representative of PENGU wrote, that they didnt buy Open Sea. With this hype, PENGU has been on a rally. As shown in the chart below, the token is trading inside a bullish pennant, which if breaks out has the potential to reach $0.057, as per the fibonacci levels.
However, since PENGU has not completed the pennant, it may rebound off of the upper and lower trendline before, it breaks out upwards.
Ethereum targets $4,300 as it draws near the overbought region
On the monthly chart Ethereum is taking the shape of the symmetrical triangle and it is about to break out. Mikybull spotted this pattern and stated that the ETH is breaking out. When any token breaks out of a symmetrical triangle pattern, it usually breaks to the upside and reaches higher.
Ethereum has broken out from the bull flag and it may continue to rise until it reaches $4,300. Once a token breaks out from the bull flag, it tends to gain value by the height of the flag pole.
However, the RSI is near the border of going into the overbought region as it records a value of 66. In the event, the RSI crosses above the 70 mark, the token would be overbought and the market will correct the prices as ETH heads upwards.
