After several days of consolidation, altcoins appear to be gaining momentum, with some erasing some of their recent losses over the past 24 hours. Notably, the prices of two of the three most popular altcoins today are up compared to yesterday.
Interestingly, the reasons for the price increases for both of them seem to be similar. According to CoinGecko, these altcoins include Velodrome Finance (VELO), Fartcoin (FARTCOIN), and Aerodrome Finance (AERO).
Velodrome Finance (VELO)
Velodrome Finance is an automated market maker (AMM) built on the Optimism network. Its own token, VELO, is trending today as Binance announced that it will be listing on the spot market and for this reason it is part of the trending altcoins.
Following Binance’s announcement, the price of VELO increased by 125% in a few hours. Before the disclosure, VELO’s price was less than $0.15. However, as of this writing, the cost has increased to $0.33.
Additionally, the Relative Strength Index (RSI) has increased, indicating bullish momentum around the cryptocurrency. If buying pressure continues to increase, VELO’s price could rise to $0.44. On the other hand, if altcoin holders decide to take profits from the increase, the trend may reverse and their value may fall.
Fartcoin (FARTCOIN)
Fartcoin is one of the cryptocurrencies that was on the list of trending altcoins on December 12th and returned to the list today. Yesterday, BeInCrypto reported that the market capitalization of the Solana meme coin has surpassed $500 million, making it a trending altcoin.
Today, thanks to a 25% price increase, the market capitalization has reached $655 million, suggesting that buying pressure around the token continues to grow. On the daily chart, the altcoin appears to have found strong support around $0.20.
With no resistance in sight, it appears that the price may continue to rise. If this trend continues, the price of FARTCOIN could rise to $1 and likely reach a market capitalization of $1 billion.
On the other hand, if the meme coin market as a whole declines, this could change. In this case, the cost may drop to $0.34.
Aerodrome financing (AERO)
For those who have been following the market for a while, it may be surprising that AERO is moving in the same direction as VELO. Aerodrome Finance was developed by the same team that created Velodrome. But instead of building Aerodrome AMM on Optimism, it runs on Base, which is Coinbase’s layer 2 network.
Thus, Aerodrom Finance is part of a popular altcoin as its sister token was listed on Binance. But unlike VELO, the price of AERO has decreased by 2.50% in the last 24 hours.
From a technical perspective, the Money Flow Index (MFI) on the 4-hour AERO chart is showing an increase.
A rising MFI value indicates growing buying pressure. If the bulls can withstand such pressure, the altcoin price could approach $3. But if buying pressure subsides, the price could fall to $1.79.
