Cryptocurrency prices stabilized on the first day of the month after crashing by double digits on Friday, ahead of Bitcoin’s options expiry.
Hedera Hashgraph (HBAR) price led the charge among altcoins, rising by 25% on Saturday.
Stellar Lumens (XLM) rose by 16%, while Algorand (ALGO) and Ondo Finance (ONDO) rose by over 15%.
These altcoins jumped after Bitcoin (BTC) bounced back above $85,000 after crashing to $78,115 on Friday. It rebounded after options worth over $5 billion expired on the last day of the month, and a sense of calm spread in the market, with American equities ending the day higher.
The Dow Jones Industrial Average rose by 600 points, while the Nasdaq 100 and S&P 500 rallied by 95 and 300 points, respectively. Cryptocurrency prices often have a close correlation with the US stock market.
There was no specific news on Saturday’s top movers, like Hedera Hashgraph, Algorand, Stellar Lumens, and Ondo Finance.
A potential catalyst for Hedera and Stellar Lumens is that the Securities and Exchange Commission has become more friendly on the crypto industry. It has ended its lawsuits on Gemini, Coinbase, and Uniswap, and is in talks with Justin Sun to end or settle its lawsuit.
Therefore, analysts anticipate that the SEC will now move to approve spot crypto ETFs like Litecoin (LTC), Hedera, and Stellar. An ETF approval would potentially lead to more inflows, boosting their prices.
The other potential reason for the HBAR, ALGO, ONDO, and Stellar rally is that investors are buying the dip since they all are trading at their lowest levels in months. It is a common situation for investors to buy the dip after assets crash.
Additionally, this rebound may be part of a dead cat bounce, a common situation in the market where an asset in freefall experiences a brief rebound. Also known as a bull trap, it is usually a temporary rebound before the asset resumes the downtrend.
Hedera Hashgraph price analysis
The daily chart shows that the HBAR price bottomed at $0.1807 this week and then bounced back to $0.2360. It has moved slightly above the 25-day moving average, while the two lines of the percentage price oscillator have pointed upwards.
Therefore, Hedera may keep rising as bulls target the next key resistance level at $0.2586, the 38.2% Fibonacci Retracement level and the lowest swing in January.
Algorand price technical analysis
Algorand price has consolidated in the past few days. It has moved below the 50-day moving average, a sign that bears remain in control. ALGO remains below the 61.8% retracement point and has formed a head and shoulders pattern. A H&S pattern is one of the most bearish signs in the market.
Therefore, the coin will likely have a strong bearish breakdown and retest the psychological point at $0.20.
Stellar price forecast
The XLM price topped at $0.6360 on November 24 last year and then bottomed at $0.2537 on Saturday. It has formed a series of lower lows and lower highs, resulting to a descending channel. It retested the lower side of this channel on Friday and formed a small doji candle. Therefore, the coin will likely bounce back as bulls target the upper side of the channel at $0.35.
Ondo price prediction
The ONDO token peaked at $2.1590 in December and has now bottomed at the psychological point at $1. It has dropped below the 50-day moving average and the 61.8% Fibonacci Retracement point.
The token has formed a head and shoulders pattern, pointing to more downside, potentially to the psychological point at $0.80.
At press time, Bitcoin was up 2.7%, trading at $84,536. It’s down 22.4% from its all-time high.
