The much-anticipated Federal Reserve rate cut is expected to take place today, Wednesday, September 18. As market conditions shift, it’s essential to monitor altcoins that could potentially benefit from the decision.
While crypto analyst Miles Deutscher suggests that the number of cryptocurrencies potentially benefiting from the rate cut could exceed five, BeInCrypto’s analysis focuses on Aave (AAVE), Jupiter (JUP), Sui (SUI), LayerZero (ZRO), and Fantom (FTM).
Aave (AAVE)
AAVE, the native cryptocurrency of the DeFi lending protocol, tops the list of altcoins to watch. In the last 30 days, AAVE’s price has increased by 23%, making it one of the best-performing altcoins of the last month.
On the daily chart, the token has formed an ascending triangle, which is a bullish chart pattern. Currently, AAVE’s price is $136.
Although the red candlestick shows that bears are trying to exert pressure on the price, the crypto might resist a downswing as long as it keeps trading within the triangle. If this remains the same amid the Fed rate cut announcement, the token might rebound.
Should this be the case, AAVE could jump toward $159.87. However, the prediction might be invalidated if the altcoin slips out of the triangle. If that happens, AAVE’s price could decline to $120.97.
Jupiter (JUP)
Second on the list of altcoins is Jupiter, the token of the swap aggregator built on the Solana blockchain. Unlike AAVE, JUP’s price has shed a part of its value while trading at $0.71.
Interestingly, the Money Flow Index (MFI) has risen above the 50.00 neutral point. This rise indicates that market participants are allocating more liquidity to the token and buying the dip. Should this continue, JUP could refrain from sliding below $0.70.
For Deutscher, the current price action shows that JUP, as well as Jito (JTO) have reached their respective bottoms.
“These are 2 Solana DeFi play, which are both bouncing from the bottom of their ranges,” the analyst said.
Due to the anticipated bullish Fed rate cut announcement, JUP’s price might jump to $0.81 afterward. But if the price drops below $0.70, an accelerated downturn to $0.63 could follow.
Sui (SUI)
Sui’s inclusion in this list might not be surprising to those who have followed the market religiously in recent times. Over the last 30 days, SUI has emerged as one of the biggest gainers out of the top 100 altcoins, recording a 42.80% price increase.
At press time, the native token of the layer-1 blockchain trades at $1.17. According to the daily chart, bulls have been helping the token hit a higher low (HL) sequence. Furthermore, the Golden Cross further validated the upswing.
A golden cross appears when the shorter Exponential Moving Average (EMA) jumps above the longer one. As seen below, the 20 EMA (blue) crossed over the 50 EMA (yellow) since September 7.
Read more: Which Are the Best Altcoins To Invest in September 2024?
As long as this stays the same, SUI’s price might evade a drop below $1. Instead, the cryptocurrency’s value might jump toward $1.30, approaching its all-time high of $2.18
LayerZero (ZRO)
LayerZero is another altcoin that could benefit from the Fed rate cut announcement. Over the last 30 days, ZRO’s price has increased by 16%. But beyond the price increase, Deutscher mentioned that the fact that the project does not have another token unlock till July 2025 could drive it upwards.
“As the leading interoperability play, ZRO interests me for two reasons: 1. Its relative strength vs the rest of the market, and: 2. The fact it has zero unlocks until July 2025,” Deutscher posted on X.
BeInCrypto also agrees with the sentiment, as no token unlock will reduce the supply shock ZRO might face. On the 4-hour chart, ZRO’s price has fallen from $4.16 to $3.87. However, the $3.87 level is historically a major support zone for the token.
As such, if the rate cut comes as expected, ZRO could bounce off this point. If that happens, the price might climb toward $4.20. However, a bearish outlook might occur if the token slides below the support. In that instance, ZRO could drop to $3.69.
Fantom (FTM)
Like AAVE, FTM is one of the large-cap altcoins with impressive recent gains. This upswing, which shows an almost 50% price increase within the last 30 days, could be linked to Fantom’s almost complete Sonic upgrade.
At press time, FTM’s price is $0.57. However, based on the Chaikin Money Flow (CMF) indicator on the daily chart, the token could go higher. The CMF indicates if accumulation is outpacing distribution or otherwise.
When the reading increases, buying pressure is much more than selling volume. As shown below, the CMF reading has increased, suggesting that bulls are still in control. Should this remain the same, FTM’s price could surpass the resistance at $0.59 and climb toward $0.80.
Read more: Top 9 Safest Crypto Exchanges in 2024
However, the bullish forecast might be invalidated if the token becomes overbought. In that scenario, its price could drop to $0.47.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
