Cryptocurrency Price Forecast: The cryptocurrency market on Sunday showed neutral sentiment and did not make any major jumps in either direction. This side action may be the “calm before the storm” as market participants anxiously await the potential approval of spot Bitcoin ETFs.
As Reuters reported on January 6, regulators and exchanges have been hard at work on 19b-4 filings, which are crucial to the SEC's approval of bitcoin ETFs. Recently, the exchanges made revisions to 11 of these filings. This development is particularly important because it could pave the way for the launch of these ETFs.
Industry insiders familiar with the application process indicate that issuers who meet year-end application review deadlines are more likely to receive a positive response. The spotlight is now on the Ark/21Shares ETF, which comes in at number one. The Securities and Exchange Commission is scheduled to approve or reject this fund by January 10th. The decision on this fund is eagerly awaited as it will set a precedent for other similar ETFs in the pipeline.
Amid the sideways movement, altcoins such as Cardano (ADA), GMT, and Stacks (STX) showed a stable bullish stance, indicating a higher possibility of a new recovery.
Cardano price is on the last pullback before hitting $1
Cardano price has recently seen a correction, retreating from its peak of $0.676 at the end of December. Within two weeks, the altcoin saw a sharp decline of 23.6%, reaching the current trading price of $0.529. Despite this setback, there was a significant indication of buyer activity at the $0.5 mark, as evidenced by the long-tailed rejection candles on Wednesday. This level corresponds to the 38.2% Fibonacci retracement level, indicating an area of high interest for buyers.
Delving into the daily time frame chart, this retracement phase appears to be part of a larger, more bullish reversal pattern known as the “cup and handle,” which has been in development for approximately 20 months.
This pattern is extremely important because it indicates a potentially major shift in market dynamics. If this pattern holds true, it could send ADA price up by 30%, pushing it to test the neckline resistance level at $0.676. A break above this level would increase buying pressure and could lead ADA on the path to reaching the expected target of $1.13.
Amid this market correction, the 20-day and 50-day moving averages are playing a vital role, providing key support and suggesting potential pullback points for ADA.
What is fueling the rise in GMT prices?
A look at the daily time frame shows that GMT coin price has almost seen a bottom recovery, after finding suitable support at $0.14. Amid the broader market recovery, this coin began a new recovery in late October which saw the price rise by 80% to currently trade at $0.42.
However, the GMT price has shown a significant recovery of 57% over the past 48 hours despite the current market uncertainty. This sudden spike can be linked to the recent launch of web game 3 GasHero and its $1.84 million GMT burn activity in the past three days as cryptocurrency analyst hitesh.eth explained in an X post.
With prices rising today, the GMT price gave a deceptive breakout to the recent swing high at $0.373. This breakout suggests that buyers may continue on the recovery path and have their eyes on potential targets of $0.5 and $0.67.
A daily RSI value of 70% indicates that recovery sentiment is active.
Dynamic support could push Stacks (STX) prices beyond $2
Stacks price entered a strong recovery mode in early December when buyers broke through the resistance level of the 21-month symmetrical triangle pattern. This breakout signaled a major shift in trend and boosted the altcoin by 84% to currently trade at $1.62.
This ongoing rally coin can be traced by a rising trend line that provides dynamic support for the STX price. Until this support remains intact, potential buyers can look for pullback opportunities at this trend line.
With continued buying, Stacks coin price may chase the next important resistance level at $1.96 followed by $2.46.
With the ADX value rising (37%), reflecting this buyers may prefer a pullback to regain upward momentum.
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