Top 5 altcoins to keep an eye on in August
Date: 2023-08-03 Author: Karina Ziganova Categories: BLOCKCHAIN
Even though July turned out to be mostly bearish for the cryptocurrency market, some of the altcoins showed significant gains, reversing the bearish trend in the process. These five tokens below are likely to grab attention in August.
On August 2, the long-awaited halving will take place in the Litecoin (LTC) network. Horizen (ZEN) and ICON (ICX) will launch important testnets. Tezos (XTZ) will be hosting a big event and Ultra (UOS) will be introducing a new gaming platform.
Halving in the Litecoin (LTC) network may lead to a price increase
Price: $91.50
Market capitalization: $6.65 billion
Position in the ranking of cryptocurrencies: #12
When the Litecoin project first appeared, miners were given 50 LTC for each mined block as a reward. After mining 840,000 blocks (about once every four years), the reward is halved. This event is called a halving. It occurs for the purpose of deflation and will continue until the block reward is zero.
The current block reward is 12.5, but today, August 2, the third halving will take place and the reward will be reduced to 6.25 coins per block.
Ahead of this event, the price of LTC showed bullish signs. It made a bullish breakout from the falling wedge that has been on the chart since July 3rd. Exits from such structures often lead to significant upward movements. However, shortly after, LTC pulled back to pre-breakout levels.
If the token continues to rise, then the next resistance will come into play at $102, which is 13% above the current price.
However, the bullish breakout will be nullified if LTC drops below the $90 breakout level. In this case, the price may correct to $82, i.e. decrease by 9%.
Icon (ICX) launches testnet
Price: $0.22
Market capitalization: $211.9 million
Position in the ranking of cryptocurrencies: #158
Starting July 31st, ICX launched the XCall Incentivized Testnet, offering incentives to community members for helping develop. The test network will focus on testing various functionality, decentralized applications and tools. For a quality contribution to the work, you can get up to 845,000 ICX.
According to the results of the technical analysis, on June 22, the ICX price made a bullish breakout of the descending resistance line. Despite the breakout, the price failed to overcome the $0.25 horizontal resistance area. On the contrary, it bounced off it twice and formed a lower high (red icon). This is a bearish sign that suggests that the breakout may have been a false one.
Thus, the ICX trend cannot be considered bullish until the price rises above the $0.25 resistance area.
In case of a successful breakout, ICX could rise to the next resistance at $0.55. This would mean a 55% increase. However, if the bulls fail, the price could fall 22% to the $0.17 area.
Horizen (ZEN) and another testnet
Price: $9.49
Market capitalization: $132.7 million
Position in the ranking of cryptocurrencies: #211
As part of the upcoming mandatory software update for ZEN 4.1. Horizen mainnet shielded pools will be discontinued. Thus, the update will remove support for confidential transactions at the consensus level and the ZEN token will no longer be anonymous.
The expected schedule for the release of the update is as follows:
Testnet: August 2023
Mainnet: September 2023.
The price action of ZEN is very similar to that of ICX. Although the price broke through the descending resistance line, it failed to clear the key horizontal resistance at $9.45. On the contrary, she rolled away from him three times, forming long upper wicks (red icons).
Since then, the coin has still reclaimed this resistance level, but another bounce could push ZEN back to the descending resistance line at $7, i.e. 25% of the current price.
On the other hand, in case of a successful breakout, ZEN could rise by 60% and reach $15. For now, the upcoming testnet is supporting the bullish momentum of ZEN.
Tezos organizes an event
Price: $0.84
Market capitalization: $797.8 million
Position in the ranking of cryptocurrencies: #57
On August 2, Tezos is hosting a meeting in London that will include a DeFi workshop on decentralized exchanges that provide liquidity.
In early July, XTZ price broke through the descending resistance line. While a breakout of such structures usually results in significant growth, this did not happen in the case of Tezos. On the contrary, since then, the token has been treading water around the breakout level.
If growth is not triggered, then XTZ could fall to an annual low of $0.70, which is 17% below the current price. However, if the growth continues, then the price may strengthen by 45% and reach the next resistance at $1.20.
Ultra (UOS) launches gaming platform
Price: $0.17
Market capitalization: $47.2 million
Position in the ranking of cryptocurrencies: #426
Ultra arena starts on August 8th. It is an online tournament platform that will allow gamers to compete with friends in their favorite games and win various new prizes. The arena will be available on the Ultra platform.
This launch could give a much-needed boost to the price of UOS, which has already nearly breached its yearly low support area at $0.17.
If this bearish breakout is confirmed, a 40% drop in price to the next nearest support at $0.10 is possible. On the other hand, if there is a rebound, then UOS could rise by 30%.
