The past several days have been quite turbulent for the cryptocurrency market, which fell after the $6.3 billion Binance hack and saw heightened volatility during the US midterm elections.
In the aftermath, many altcoins staged a V-shaped recovery over the last 24 hours, with analyst Ali Martinez identifying three that could be gearing up for a significant short-term rally. Here’s why.
ETH and More
Martinez started his analysis with the largest altcoin, noting its brief drop toward $2,200. However, he revealed that its TD Sequential flashed a buy signal on the three-day chart, suggesting the correction could be nearing its end.
“If buying pressure picks up, ETH could rebound to $2,500. Breaking that level would put the setup resistance trendline near $2,700 in focus,” he added.
Meanwhile, the asset has headed north following the plunge, currently trading near $2,330 (per CoinGecko).
Martinez then shifted his focus to Solana, which appears to be forming a similar setup. Although the token temporarily dipped to approximately $90, the TD Sequential has printed a buy signal on the three-day timeframe.
“If it completes and $90 holds as support, SOL could rebound toward $105, then the setup resistance trendline near $120,” Martinez argued.
Finally, the X user turned to Cardano’s ADA, which sank to its lowest level in 10 weeks at $0.18 as markets reacted to the Democrats’ decisive victory in the US midterm elections.
“But a fresh 9 and a Sequential 13 buy signal appeared on the ADA 3-day chart. If buyers step in, I’m watching $0.2268 first. A break above it would bring the setup resistance trendline near $0.2677 into focus,” he stated.
Additional Potential Gainers
Shortly after, Martinez said the TD Sequentials on the three-day chart for Sui (SUI), Aave (AAVE), and Chainlink (LINK) have also flashed buy signals. That said, he predicted possible rallies toward $1.20, $176, and $14, respectively.
Another market observer who has recently touched on the topic is Michael van de Poppe. He expects altcoins to outperform Bitcoin (BTC) in the foreseeable future because fear of the midterms is over.
“I would also assume that we’re going to see a similar rally as the previous time after the FOMC meeting (the green block),” he added.
The analyst specifically highlighted SUI, saying it “looks great” and emphasizing that its bullish divergence is still in play.
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