Key Points:
- Dogecoin surged by 31.60%, driven by Elon Musk’s tweets and whale accumulation.
- Worldcoin gained 27.30%, boosted by a rebranding and a new Layer-2 launch.
- Ethena rose 24.30% after launching its USDe protocol on Solana.
- Continued bullish trends could see further gains for these altcoins, but profit-taking risks remain.
Altcoins Soar in the Third Week of October
The third week of October 2024 saw notable gains across several altcoins, with Dogecoin (DOGE), Worldcoin (WLD), and Ethena (ENA) leading the pack. These cryptocurrencies experienced impressive price increases, outperforming the market’s fluctuating performance from the prior week. In this analysis, we break down the key factors driving their upward momentum and assess the outlook for these assets.
Dogecoin Leads with Over 31% Gains
Dogecoin recorded the highest price jump among altcoins, surging 31.60% in a week. One of the main contributors to this rise was the renewed interest from crypto whales, who accumulated large quantities of DOGE, creating buying pressure. Additionally, Tesla CEO Elon Musk, a known advocate of Dogecoin, played a significant role in the rally. Musk’s mentions of a potential “Department of Government Efficiency” (D.O.G.E) under a hypothetical Trump administration sparked a wave of enthusiasm among Dogecoin investors. As a result, the price hit $0.14, a level not seen since July.
From a technical perspective, Dogecoin’s breakout from a descending triangle pattern signaled further upward movement. The breakout defied expectations of a price decline, driving DOGE’s rally. Moreover, the “golden cross” formation, where the 20-day Exponential Moving Average (EMA) crossed above a longer-term average, reinforced the bullish momentum.
Looking ahead, analysts suggest Dogecoin could rise to $0.17 or even $0.20 if the positive trend continues. However, if long-term holders decide to cash in on profits, the price might retrace to $0.12.
Worldcoin Follows with 27% Growth
Worldcoin secured second place among the top performers, gaining 27.30% this week. The altcoin’s surge came after a strategic rebranding to “World” and the rollout of its Layer-2 solution, “World Chain.” These developments attracted increased investor interest, propelling the price to $2.50.
Despite the recent growth, Worldcoin is still 79% below its all-time high. Strong support at $2.10 provided a foundation for the rally, with an increasing Relative Strength Index (RSI) indicating that bullish momentum is building. If Worldcoin continues to rise, it could encounter resistance at the $2.95 level. A breakthrough here could send the price toward $4.94. However, a failure to surpass resistance might lead to a pullback below $2.
Ethena Surges on Protocol Launch
Ethena (ENA) was another standout performer, climbing 24.30% this week following the launch of its synthetic-dollar protocol, USDe, on the Solana blockchain. This new development significantly boosted investor confidence, pushing ENA’s price to $0.41.
On the technical side, the Moving Average Convergence Divergence (MACD) indicator has flipped positive, suggesting that bullish momentum may continue. If this upward trend holds, Ethena could potentially reach $0.70 in the near term. However, traders should be cautious around the $0.50 resistance level, as failing to break through could lead to a decline back to $0.35.
As the third week of October comes to a close, Dogecoin, Worldcoin, and Ethena have emerged as the biggest altcoin gainers. While their upward trajectories appear strong, investors should keep an eye on key resistance levels and the potential for profit-taking, which could lead to short-term price corrections
