Key Takeaways
- Chainlink (LINK) broke out from a descending wedge.
- Stacks (STX) generated a triple bullish divergence.
- Dogecoin (DOGE) is breaking out from a bullish pattern.
April was a positive month for the crypto market. Many altcoins reached their bottoms on April 7 and broke out from their downtrend lines, which had been in place for several months.
However, the Bitcoin Dominance Rate (BTCD) increased considerably, from 62.30% to 64.66%. Despite this Bitcoin (BTC) dominance, several individual altcoins have outperformed the biggest cryptocurrency.
Below, we will analyze three altcoins that can increase significantly in May, outpacing BTC.
LINK Price Breaks Out
The first altcoin likely to outperform BTC in May is LINK. Chainlink has increased since bouncing on April 7 (green icon).
The bounce validated the support trend line of a descending wedge, causing a breakout on April 19. Then, LINK validated the wedge as support (black circle).
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Technical indicators support the breakout. The Moving Average Convergence/Divergence (MACD) generated a bullish divergence (orange) before the upward movement and is nearly positive.
While the Relative Strength Index (RSI) is still below 50, it has increased since April 7.
The daily time frame analysis is bullish. If LINK sustains its breakout, it can increase toward its closest resistance at 18,000 satoshis.
Stacks Rallies After Divergences
Stacks (STX) has shown signs of life after a steep decline.
Since hitting highs in December 2024, the STX price has tumbled more than 70%, reaching a low of 641 satoshis on April 7. However, the recent price action suggests a potential rebound.
The wave count indicates that STX has completed a five-wave downward movement (marked in red), setting the stage for a possible relief rally.
Although the price action itself hasn’t been particularly exciting, the strong bullish divergences seen in both the RSI and MACD offer a glimmer of hope. The RSI, in particular, has moved above 50 after the divergence, signaling a positive shift in momentum.
If STX can break above the key 850 satoshi resistance, it could see a surge toward the 1,520 satoshi level, which aligns with the 0.382 Fibonacci resistance — a potential 100% price increase.
Dogecoin Completes Correction
The DOGE price has fallen since its cycle high of 462 satoshis in November 2024.
Dogecoin’s decline is a five-wave downward movement, creating a descending wedge, a classic bullish trend reversal pattern.
The DOGE price bounced on April 7, confirming the 170 satoshi area as support.
DOGE broke out from the wedge on April 23, confirming the correction is over.
Technical indicators legitimize the breakout. The RSI and MACD generated bullish divergences before the breakout and are moving higher.
As a result, the DOGE chart analysis suggests that an increase toward the 220 satoshi resistance area is likely.
Altcoins Bullish Against BTC
LINK, STX, and DOGE are three altcoins with positive charts against BTC.
The altcoins have broken out from bullish patterns or descending resistance trend lines and generated bullish divergences.
Of the three, DOGE has the highest potential for outsized returns since it has yet to break out from its pattern.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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