The cryptocurrency market is showing signs of cooling down as altcoins like ARB, ONDO, XLM, HBAR, and INJ are gearing up for the next breakout phase. The Altcoin Season Index currently stands at 43 out of 100, indicating a healthy cooldown period before the next surge in altcoin prices.
Arbitrum (ARB) is currently forming a Cup and Handle pattern on the daily chart, suggesting a potential breakout after withstanding significant sell pressure from recent token unlocks. The price is consolidating between $0.461 and $0.5045, with technical indicators like RSI and MACD supporting a bullish scenario. A breakout above $0.5045 could lead to a rally towards $0.522, backed by the $216M Arbitrum DAO grant.
ONDO Coin experienced a sharp rally following the SEC filing of the 21Shares Ondo Trust S-1 on July 22. The price is now forming a double bottom pattern, with support at $0.94-$0.98. A breakout from this pattern could target $1.30-$1.40, driven by speculation around potential ETF approval and momentum in real-world asset tokenization.
Stellar (XLM) has surged over 90% in July, consolidating within a bullish flag pattern between $0.33 and $0.44. Volume remains strong, with the MACD cooling off and RSI dipping to 59. A breakout from this flag could target $0.51, with further upside towards $0.60-$0.62, supported by partnerships and CBDC pilots.
Hedera (HBAR) has broken out of a W pattern, rallying from $0.13-$0.14 to $0.287 before pulling back to $0.23-$0.24. The BBTrend indicator has turned green, indicating a potential move towards $0.35+. Institutional support from Grayscale’s Smart Contract Platform Fund and Canary Capital’s trust filing further bolster HBAR’s bullish case.
Injective (INJ) has seen a 1,770% surge in daily active addresses, signaling rising adoption of its Layer-1 network for DeFi and modular dApp deployment. The price surge towards $14.2 mirrors this trend, with the next upside target around $16.5. Continued address activity could drive further price appreciation, with potential targets at $19-$20.
Overall, these altcoins are showing strong technical and fundamental indicators, setting the stage for a potential breakout in the upcoming altcoin season. Investors should keep a close eye on these projects as they navigate through the market cooldown period towards renewed price momentum.