3 Altcoins To Watch Ahead of US FOMC Minutes, Inflation Data

Top-ranking cryptocurrencies, including Bitcoin (BTC) and Ethereum’s native asset, Ether (ETH), have stabilized ahead of key data releases in the United States.

The market’s attention is shifting toward the release of the Federal Open Market Committee’s (FOMC) minutes from their September meeting on Oct. 9 and consumer price index (CPI) data a day later.

Primarily, bond traders now see an 88.8% probability of a 25 basis point (bps) rate cut following last week’s stronger-than-expected U.S. jobs report. Interestingly, the probability of a 50 bps rate cut has fallen to 0% from over 17.5% a month ago.

The slightly weaker dovish tone has bolstered the U.S. dollar and the Treasury yields to their multi-week highs. Higher yields typically reduce the opportunity cost of holding riskier assets like cryptocurrencies — a reason why BTC, ETH, and most top-ranking crypto assets have stabilized or fallen in the past week.

Top Altcoins To Watch Ahead of U.S. CPI, FOMC Minutes

Looking ahead, the dollar is poised to maintain its strength, supported by geopolitical risks and tempered U.S. inflation expectations.

If Oct. 10’s CPI report remains stubbornly high, the chances of the Fed holding off on a November rate cut may rise. That could potentially drive up yields and further boost the U.S. dollar, causing top crypto assets to decline.

Nonetheless, some altcoins look more promising due to their distinctive fundamentals than the top-ranking lot, especially after the release of FOMC minutes and the CPI data. These altcoins are Sui, Aptos, and Algorand.

Sui (SUI) Technical Setup: A 20% Boom Ahead?

Sui (SUI) has been among the best-performing cryptocurrencies, rising by around 6% on a seven-day adjusted timeframe and 115% on a thirty-day adjusted timeframe. In comparison, the crypto market, on the whole, has yielded approximately 1.5% and 15% returns in the same period.

At the core of SUI’s outperformance versus the crypto market is its blockchain’s booming adoption among memecoin developers. Like Solana’s memecoins earlier in the year, Sui’s memecoins, including HIPPO, PLOQ, and LIQ, have gone viral in the past few weeks, hinting at a growing underlying demand for the SUI tokens.

For instance, the daily transaction volume on the Sui blockchain surged by 115%. Moreover, on Oct. 5, SUI executed over 58 million transactions, surpassing Solana’s 35 million transactions, showcasing its growing popularity and efficiency.

Other solid fundamentals supporting the SUI’s bull run in recent weeks include the following:

• Circle announced support for USDC on the SUI network, enhancing its utility for developers in DeFi, gaming, and e-commerce applications.
• Bybit added SUI Coin to its Launchpool platform, marking its first mining pool beyond the Mantle ecosystem.

SUI Technical Analysis

From a technical perspective, SUI is forming a bull flag pattern on its four-hour (4H) chart, indicating a bullish continuation in October.

Notably, a bull flag forms when the price trends lower inside a parallel descending channel following a strong uptrend. It resolves when the price breaks above the upper trendline and rises by as much as the previous uptrend’s height.

Applying this technical rule on the SUI/USDT 4H chart brings its upside target to around $2.34, up about 20% from the current price levels.

Aptos (APT): Token Unlock, Japan Expansion Boosting Demand

Another cryptocurrency that has recently outperformed the broader crypto market is Aptos (APT). The layer-one token has surged by over 20% on a seven-day adjusted timeframe and 50% on a thirty-day adjusted timeframe. It may head further higher if the FOMC minutes and US CPI data boost risk sentiment.

Traders have flocked to Aptos markets amid Aptos’s global expansion. Notably, the proof-of-stake blockchain project has acquired Japan-based Inc., aiming to integrate its Palette Chain into its network by January 2025.

The APT price rally continues in the days before the unlocking of its 11.3 million tokens (worth about $104 million) on Oct. 12.

Speculative buying often occurs before major token unlock events, as traders anticipate short-term price increases due to increased attention and liquidity. Additionally, some investors may position themselves to sell after the unlock, expecting heightened volatility or liquidity opportunities.

Aptos Technical Analysis

The current APT price chart shows signs of a potential bearish reversal, marked by a rising wedge formation. This pattern, characterized by converging trendlines with higher highs and higher lows, often signals weakening upward momentum and hints at a possible breakdown.

Further supporting this bearish outlook is a bearish divergence visible on the Relative Strength Index (RSI), where the RSI is making lower highs while the price continues to push higher.

That suggests that buying pressure is losing strength, which could lead to a price decline once the wedge’s support line is broken.

If the rising wedge breaks down, APT could experience a decline toward the $7.36-6.66 area, depending on the breakdown point. These levels align with APT’s Fibonacci retracement levels and previous support areas.

However, APT also shows potential for further upside within the wedge’s range before any breakdown occurs. The price can still test the $10.32 level, driven by speculative buying ahead of the Oct. 12 token unlock event.

If market sentiment remains optimistic and demand stays robust, APT could temporarily breach the $10 mark despite the underlying bearish indicators.

Algorand (ALGO): Falling Wedge Breakout Underway

Algorand (ALGO), a PoS blockchain asset, is undergoing a falling wedge breakout, indicating strong upside moves following the FOMC minutes and CPI data release.

ALGO Technical Analysis

On Oct. 5, ALGO’s price broke above the wedge’s upper trendline, only to retreat lower to retest it again as support.

The retest is a critical phase as it allows traders to gauge the strength of the breakout. If the price holds above this newly formed support, it often signals a stronger continuation of the upward trend, increasing the likelihood of further price gains.

Should ALGO successfully bounce off this trendline, it would solidify the bullish reversal and open the door for a move toward the $0.1423 resistance area in October. This level is determined by adding the maximum distance between the wedge’s upper and lower trendline to the breakout point — a typical way to measure the falling wedge’s upside targets.