Top Altcoins to Watch for Potential Gains This Month: ETH, XRP, and AVAX in the Spotlight

Date: February 1, 2025 | 06:08 AM GMT

The cryptocurrency market has been experiencing a rollercoaster ride following the strong rally in November, which was fueled by Donald Trump’s election victory. Bitcoin (BTC) surged to an all-time high (ATH) of $108K on December 17 but later entered a correction phase, dipping to $89K on January 13.

However, market sentiment shifted once again with Trump’s inauguration, pushing BTC to a new ATH of $109K on January 20. Currently, BTC is holding strong above $101K, and with this renewed bullish momentum, altcoins are also gearing up for potential upside movements.

Here’s a closer look at three top altcoins—Ethereum (ETH), XRP, and Avalanche (AVAX)—that are showing promising technical patterns.

Ethereum (ETH)

Ethereum (ETH) faced a consistent downtrend after getting rejected from its $4,100 high on December 16. Since then, it had been trading within a falling wedge pattern, which is typically a bullish reversal setup.

A recent bounce from the 200-day simple moving average (SMA) helped ETH break out of this wedge, pushing its price to a local high of $3,437. Currently, ETH is trading at $3,244 and retesting the breakout trendline.

Key levels to watch:

• A successful bounce from this retest could push ETH toward $3,744 and $4,106.
• However, failure to hold the breakout level might invalidate the bullish setup.

XRP (XRP)

On the 4-hour chart, XRP recently bounced off its 100 SMA support at $2.65 and is now trading around $2.98, just below a similar descending trendline that has previously led to strong breakouts.

This pattern closely resembles previous setups where XRP’s 25 SMA acted as a dynamic support near the trendline, triggering breakout rallies (as highlighted by the blue circles).

Key levels to watch:

• If XRP breaks above the descending trendline, the next major resistance is at $3.38.
• A confirmed breakout above $3.38 could set the stage for an extended rally.

Avalanche (AVAX)

AVAX is currently trading at $33.88, moving within a falling wedge—a bullish pattern that often signals a trend reversal upon breakout.

The token recently found strong support around $32, aligning with both the lower boundary of the wedge and the 200-day SMA. The MACD is also showing early signs of a bullish crossover, which could indicate upward momentum.

Key levels to watch:

• A breakout above the wedge resistance could send AVAX toward $38 and $41.
• Failure to break out might result in another retest of the $32 support.

What’s Ahead?

The momentum in the altcoin market is currently tied to Ethereum’s breakout. The ongoing retest of the breakout level will be a crucial turning point for the entire market. If ETH successfully bounces from this level, we could see a strong altcoin rally, with tokens like XRP and AVAX following suit.

However, if ETH fails to hold, it might signal further consolidation before the next leg up.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.

Written by

Nilesh Hembade

Nilesh Hembade is the Founder and Author of Coinsprobe, with 5+ years of experience in cryptocurrency and blockchain. Since launching the platform in 2023, he delivers daily, research-driven insights through market analysis, on-chain data, and technical research. His work has been featured on Binance, Bitget, and CoinMarketCap. He is also certified through Binance Academy (NFT Certificate).

›