In this analysis, BeInCrypto highlights three altcoins to watch closely for this third week of October 2024. These options supported for very specific reasons include Ethena (ENA), EigenLayer (EIGEN) and Avalanche (AVAX).

Athena (ENA): breakthrough looms as major proposal gains ground

ENA, the native token of the Ethena protocol, tops the list of altcoins to watch this week. In the last 24 hours, its price has increased by 16.54%, now trading above $0.41.

This price increase is mainly related to Ethena’s proposal to add Solana (SOL) as a backer for the ecosystem’s synthetic stablecoin, USDe.

“The proposed allocation would be phased in after consultation with the risk committee, taking into account the shorter trading history of SOL perpetual futures, its lower liquidity and less rich historical data on funding rates. However, SOL’s approximately $2 billion in open interest on platforms where Athena is currently hedging, combined with more favorable funding in 2024 compared to BTC and ETH, presents an attractive opportunity to further align Athena and USDe with one of the largest ecosystems in cryptocurrencies. ” Athena officials said in their official announcement.

According to the daily chart, ENA is about to break out of the accumulation zone around $0.40. A look at the moving average convergence divergence (MACD) shows a bullish crossover, potentially confirming an extended uptrend.

MACD measures trend direction using the positions of 12- and 26-period exponential moving averages (EMA). When the longer EMA crosses the shorter one, the trend is bearish. However, as seen below, the 12 EMA (blue) has crossed the 26 EMA (orange), indicating that buyers are in control.

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As long as this remains unchanged, the price of ENA could climb above its resistance at $0.50. Once you do that, the token can rise to $0.77 before trying to break $1 again. On the other hand, if it experiences strong selling pressure, ENA could fall to $0.20.

EigenLayer (EIGEN): price could skyrocket after conversion

Second on the list, EigenLayer (EIGEN) is scheduled to unlock 11 million tokens on October 15th. After its last release, EIGEN soared 20%, prompting speculation of a similar result this time around.

However, between October 12 and 13, EIGEN saw its price drop by 9.19%. Today, the token rebounded slightly. Although the altcoin may encounter resistance at $3.73, support at $3.58 appears strong. So it could benefit the bulls who could take advantage of it and overcome the obstacle.

If that happens, EIGEN shares could jump to $3.97 by the end of the week. However, traders will have to remain vigilant. If demand for the token after unlocking is disappointing, EIGEN could drop to $3.35.

Will the Avax course soon be bolstered by Avalanche initiatives?

However, this list of altcoins would not be complete without the AVAX cryptocurrency. It is included in this list for a very specific reason. Since the Avalanche Foundation decided to buy 1.97 million AVAX from Terraform Labs.

In April 2022, the foundation sold tokens for $45.50 million. Today, these tokens are worth nearly $60 million. On October 11, the Avalanche Foundation announced that it had bought back the tokens and is now awaiting approval from the US Bankruptcy Court in Delaware.

“This action ensures that LFG does not violate the token usage restrictions of the original agreement and protects the tokens from complex liquidation by the recipient, while returning 1.97 million AVAX to the foundation’s possession. This strengthens the foundation’s ability to support the continued growth and development of the Avalanche ecosystem,” the foundation said via a post on X.

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On the daily chart, the price of AVAX is close to crossing the $30 mark for the first time in October. If this happens, it could strongly help the altcoin break above the descending trendline and push the price higher.

The cash flow index, which measures the level of capital injection, also supports this perspective. The result posted by this index climbed above the neutral level of 50.00. This tells us about the increasing buying pressure.

If this trend continues, the price of AVAX could increase by 30% to $38.18 in the near future. If buying pressure falls, the forecast could be seriously invalid. If that happens, AVAX could even drop to $24.68.

Moral of the story: altcoin season thrives on the brave.