The chart patterns and indicators available to analyze the price of certain altcoins are often centered around a single element. These elements are known as breakouts.
At some point during the life and price of specific cryptocurrencies, their price actions consolidate around a certain point. These consolidation points eventually lead to a price squeeze as the bulls and bear battle for control over where the cryptocurrency goes next.
Breakouts happen when the price of a certain asset successfully moves beyond an important support level. They are usually followed by explosive price growth and can be invaluable if one can predict where they might happen and take action in time.
Finding these points can be one of the most important tasks for any trader or analyst. This is because identifying breakouts before they happen and getting in right before a bullish price explosion can determine how profitable a trader or trade is.
Without further ado, here are the top 5 altcoins primed for a breakout shortly.
The second-largest cryptocurrency by market cap also appears to be a worthy candidate for a potential breakout.
As illustrated by the daily chart of Ethereum above, the cryptocurrency appears to be in a descending channel and is even pushing up against the upper support of the formation.
Ethereum broke through the $955 support in January 2021, during the heat of the last bull run that took its price to $4,300 and then to $4,950.
The cryptocurrency returned for a retest of this zone in June, testing it severally from June to July before the speculation from its upcoming merge caused a price increase that ultimately took it to $1,700.
In August and September, respectively, Ethereum tested the upper support of the formation before falling to its $1,250 lows after the US Federal Reserve increased the interest rates that, effectively sent the crypto market into a flash crash.
Ethereum is currently testing the upper support of the triangle and may very well break out in November at the latest.
A break below the multi-year $955 support would have devastating consequences for the price action of Ethereum and is unlikely to happen.
However, if a breakout to the upside does not happen now, Ethereum is expected to fall to the $955 zone and bounce right back to the upside to attempt to retest the upper resistance of its triangle formation.
Ethereum might rise to the $2,500 zone if a breakout does happen, at least before a retracement or correction.
An interesting chart formation appears to have been created by the price action on MATIC.
As illustrated by the chart above, the price action on MATIC has formed an ascending channel and will continue to squeeze itself between the $0.8 and $0.95 zones until a breakout (possibly to the upside) happens.
The upper support of the triangle has been valid for several months, remaining unbroken since mid-July.
If polygon breaks out of the upper support of this formation to the upside and successfully moves past the $1 mark, the next target level would be the $1.5 mark.
Uniswap is also one of the cryptocurrencies on the market, primed for a breakout, possibly in November.
As illustrated by the chart above, the price action of UNI has been in a symmetric triangle since mid-July.
It has relatively equal chances of breaking to the upside or downside. A break upward or otherwise depends on the strength of the bulls versus the bears and is likely to happen before the end of November.
If UNI breaks through the symmetric channel to the upside, the next target would be the $9.5 – $10 zone.
However, if a break to the bottom happens, UNI may revisit the $5.2 zone and even go as low as $3.5, depending on the general market conditions.
Like Uniswap, the Chainlink token (LINK) appears to be in a symmetric triangle but may take a while to initiate a breakout.
Zooming out to the daily timeframe on LINK, the cryptocurrency's price action is similar to that of UNI but has a longer symmetric triangle.
This triangle formation has been valid since July this year and may stretch into the first quarter of 2023.
LINK is expected to stay between the $6.14 support and the $8.8 resistance for a while until a breakout happens or the general crypto market influences its trajectory to the upside or downside.
After initially testing the $330 support (red line) in February and finally breaking through to the downside three months later in may, BNB has been trying and failing to break right back above this point ever since.
As illustrated by the chart above, the price action of BNB for the better part of the year has formed an ascending triangle. It is held up by the lower ascending support (blue line) that pushed it further into a squeeze against the $330 support.
BNB continues to test the $330 resistance, awaiting a breakout (possibly to the upside).
The cryptocurrency appears to be heading back up for a retest and may either break out to the upside or reverse for another retest of the support around $285.
If the bulls eventually win and BNB breaks upwards, the next support level would be an explosive move to the $400 level and, even beyond, to the $425 level.
Conversely, if a breakout to the bottom happens, BNB may retest the $255 zone or fall as low as $215.
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