IMX, LINK, PYTH: Three altcoins that are likely to experience volatility as social dominance peaks
- Immutable X, Chainlink and Pyth token prices and market capitalization surged over the week, inspiring a rise in social dominance.
- IMX, LINK and PYTH are likely to display heightened volatility, amid hype-inspired FOMO.
- The three altcoins soared despite a choppy altcoin market, rising 15%, 28% and 25% on the week.
While the cryptocurrency market has been bleeding, particularly for the altcoin category, three tokens have managed to outdo themselves, becoming outliers by recording double-digit gains.
Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC gains strength as GBTC outflows shrink
IMX, LINK, PYTH could experience FOMO-inspired volatility
ImmutableX (IMX), Chainlink (LINK) and Pyth (PYTH) token prices rose 15%, 28% and 25% over the last week, with the price surge leading to an increase in market capitalization. Their social dominance hit the roof with Santiment data acknowledging, “The mainstream crowd is discussing them at high rates.”
The Santiment analysts say this could precipitate the fear of missing out (FOMO), causing volatility, as sidelined investors look to catch the train.
️ #Chainlink (+34%), #ImmutableX (+23%), and #Pyth (+26%) have all enjoyed impressive market cap growth in the past week. The mainstream crowd is discussing them at high rates, meaning #FOMO should lead to high volatility for these particular assets. https://t.co/ZtbiBgKaDM pic.twitter.com/xTLp8SaG4r
— Santiment (@santimentfeed) February 2, 2024
Meanwhile, the daily chart for IMX price looks promising, with the odds favoring the bulls. This is because the Relative Strength Index (RSI) is northbound, above the 50 midline, pointing to rising momentum. Both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators are in positive territory with green-soaked histogram bars. This shows the market favors the bulls at present.
Chainlink price is also due for some more gains after shattering the critical barrier at $16.86. With the RSI at 69, there is still more room to the north before LINK becomes overbought. Its inclination north also suggests rising momentum.
The histogram bars of both the AO and MACD indicators are flashing green in positive territory, accentuating the bullish thesis.
For the Pyth Network price action, the case is similar to Chainlink, with an RSI reading of 68 and large volumes of green histogram bars in positive territory.
IMX/USDT 1-day chart, LINK/USDT 1-day chart, PYTH/USDT 1-day chart
Notably, considering the market is going into the weekend where trading volumes are often low, volatility is bound to increase, which should be cause for concern among traders. Investor caution is, therefore, advisable, given the risky nature of crypto.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
