The Federal Reserve’s recent announcement to cut interest rates by 50 basis points sent shockwaves through the market, especially among altcoins.
The Fed’s rate cut led to significant gains in the prices of Bitcoin (BTC) and altcoins, with Sui (SUI), Celestia (TIA), Fantom (FTM), Bittensor (TAO) and Sei (SEI) showing notable gains.
The altcoin rally began with breakouts in Sui and Fantom (FTM) on Monday ahead of the Fed’s rate cut announcement, which pushed the five altcoins to their best performance of the past week, according to CoinGecko.
RSI signals a possible correction in SUI prices
Sui (SUI), currently trading at $1.4917, is up 44% in the last seven days and the outlook remains bullish heading into next week.
Last week, SUI closed above its opening price 47.48% of the time.
At its current price, SUI is 27.47% below its all-time high of $2.05 recorded five months ago.
However, with 12 of the 17 most commonly used technical indicators giving buy signals, near-term sentiment remains bullish.
Analysts are, however, cautious as the 14-day Relative Strength Index (RSI) stands at 81.89, indicating an overbought condition, suggesting a potential price correction could be on the horizon.
The key resistance for SUI lies at $1.64 and a close above this level could push its price to $1.72.
On the contrary, a fall below the support level at $1.28 could lead to further declines.
SUI forecasts show it could reach $1.63 in the next 10 days, and the long-term forecast is $5.15 by 2025.
Celestia (TIA) remains strong
Celestia (TIA) is currently priced at $5,826, down slightly by 2.35% in the last 24 hours.
Despite this, the price of the token has increased by 33% over the past seven days amid increased trading volume, indicating significant market interest.
Analysts believe TIA is taking a breather after a stellar week of results. This theory is confirmed by the RSI indicator, which dropped slightly after almost entering the overbought area.
To continue its upward trajectory, TIA must remain above the first support level at $5.10 with a potential rise towards the first major resistance at $6.41.
If Celestia fails to hold above $5.10, further declines to $4.48 could follow.
The volatility seen with Celestia’s price is typical of altcoins, which often experience sharper fluctuations compared to Bitcoin and Ether.
Fantom (FTM) is taking a break
Fantom (FTM), currently trading at $0.6372, has also shown resilience.
Despite being down 3.0% in the last 24 hours, the FTM price has risen 31% over the past week.
Despite currently trading 80.58% below its all-time high of $3.24, FTM stock has closed 50.07% higher than its opening price over the past seven days, signaling an overall positive trend.
Most of the most commonly used technical indicators are also bullish, with 11 out of 17 suggesting buy signals.
However, Fantom price needs to clear the resistance level at $0.6411 to attempt to reach $0.7521.
Most importantly, for it to remain bullish, it needs to remain above the support at $0.5480, although it could see some corrections as the RSI is currently at 70.95, indicating overbought conditions that could lead to a short-term correction .
Bittensor (TAO) Rides the Artificial Intelligence Buzz
Bittensor (TAO) is currently valued at $419.9 after rising 31% over the past week.
Despite being down 42.71% from its all-time high of $724.33 recorded six months ago, TAO stock has closed 46.95% higher than its opening price over the past seven days.
With 12 buy signals from 17 of the most commonly used technical indicators, sentiment remains very bullish.
However, to continue its upward momentum, TAO needs to close above the resistance level at $479.24.
If it falls below $414.61, it could face further declines.
However, the RSI is at 73.19, indicating an overbought condition that could trigger a price correction.
Despite concerns about a correction, forecasts suggest the price will reach $456.26 in the next 10 days, with long-term forecasts pointing to reaching $500 before the end of 2024.
SEI price hits new one-month high
The SEI price is up more than 22% over the past seven days, hitting a new one-month high of $0.3743.
The current surge in SEI prices signals a possible recovery after months of consolidation following the March-August plunge.
However, the token remains 64% below its peak of $1.03 recorded on March 16, 2024.
The current surge has seen the token close above its daily opening price by 47.53% over the last seven days, and short-term sentiment is bullish with 10 buy signals out of 17 indicators.
However, the SEI needs to close above the resistance at $0.4128 to see further gains and hold above the support at $0.3368.
However, the RSI is currently at 67.23, indicating that the token may be moving into overbought territory where some price correction could occur.
Forecasts suggest a potential rise to $0.4058 over the next 10 days, with long-term forecasts calling for it to reach $1 by the end of the year.
The recent interest rate cut by the Federal Reserve has set the stage for a bullish environment among altcoins, with SUI, TIA, FTM, TAO and SEI showing significant price movements.
Thanks to a combination of technical analysis and market sentiment, the outlook for these altcoins appears promising as they continue to respond to broader economic changes.
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