The volatility in the cryptocurrency market persists, exacerbated by the lack of positive signals from broader financial markets. While altcoins are becoming less influenced by external factors, they are increasingly reliant on internal network developments to impact their prices.
BeInCrypto has examined three altcoins worth monitoring, focusing on potential catalysts for price movements in the third week of April.
Filecoin (FIL)
FIL's price has rebounded from the $2.26 support level to $2.50 after a 27% decline in March. Traders are hopeful for a recovery, noting the importance of the $2.26 support in preventing further losses and potentially signaling an uptrend.
Anticipated developments such as the FIP 0097 proposal could drive FIL's price higher. The transition to FEVM supporting transient storage and aligning with Ethereum’s EIP-1153 is expected to offer cleaner contracts, cost reduction, and enhanced compatibility. These advancements might push FIL above the $2.63 resistance level, potentially reaching $2.99.
If FIL fails to surpass the $2.63 barrier, a retreat to $2.26 is possible. Breaking below this crucial support could negate the positive forecast, leading to a potential drop to $2.00. Investors will closely watch these levels for indications of a reversal or further decline.
EigenLayer (EIGEN)
EIGEN, another noteworthy altcoin for the month's end, is on the brink of surpassing the $0.86 barrier this week, driven by the forthcoming Slashing upgrade. This upgrade will introduce a free marketplace for Operators to earn rewards and facilitate the launch of verifiable services by AVSs.
Should EIGEN capitalize on this upgrade's momentum, it could exceed the $0.86 and $0.92 resistances, aiming for $1.00 and beyond. Investors are keenly observing how this update will affect price performance.
However, failing to breach $0.86 may lead to a fallback to the $0.69 support level. This scenario would invalidate the positive outlook and delay recovery from the 41.5% losses incurred at the end of March.
OFFICIAL TRUMP (TRUMP)
TRUMP's price reached an all-time low of $7.14 before bouncing back to $8.33. Despite this recovery, the altcoin's future rally is uncertain due to the upcoming token unlock on April 18. The unlocking event, releasing 40 million TRUMP valued at $331 million, could introduce selling pressure on the altcoin in the near future.
This token unlock, the first in three months, will flood the market with 492,000 TRUMP tokens daily. Investors are wary of the increased supply potentially weighing on the price.
The surge in supply could negatively impact TRUMP, already facing low demand. This might result in a decline to $7.14 or lower, potentially establishing a new all-time low. However, breaching $9.11 would invalidate the bearish scenario, opening the door for a potential recovery.