In the cryptocurrency markets, October is sometimes referred to as “Uptober” and for good reason. Last October, for example, was a particularly good month, with popular cryptocurrencies nearing all-time highs and the overall crypto market hitting $3 trillion in market capitalization. So what can we expect this year?
The good news is that despite all the recent hype around the Federal Reserve raising interest rates and deteriorating stock markets, some cryptocurrencies may be poised for a big breakout in October. The top cryptocurrencies to watch in October are Bitcoin (BTC -0.63%), Solana (SOL -0.17%) and XRP (XRP 6.17%). The performance of each is key to understanding the current state of the cryptocurrency market. If all three of these coins post solid gains in October, then we could be headed for a very exciting 2023.
Bitcoin, of course, is the backbone of the market. Although some altcoins are starting to separate from Bitcoin in terms of performance, it is almost unthinkable to see a major bull market rally without Bitcoin’s participation.
For the past five months, Bitcoin has been locked in a relatively tight trading range of $18,000 – $25,000. Bitcoin is currently testing the $20,000 support level, and what happens in October will be crucial.
We are still in an inflationary and growing economic environment and major institutional investors expect Bitcoin to show signs of strength with each new Fed rate hike. I don’t expect big gains in the price of Bitcoin this month, but I am looking for signs of momentum and breaking out of a very tight trading range.
Last month, cryptocurrency investors focused on Ethereum, which achieved one of the most anticipated technological breakthroughs in cryptocurrency history: The Merge. Unfortunately, this was a classic case of “buy the rumour, sell the news“. In the last 30 days, the price of Ethereum has fallen by about 16%. In fact, almost every other major Tier 1 blockchain, including Avalanche and Cardano, saw double-digit declines during the month.
But the one crypto that has held up surprisingly well is Solana, which is widely considered to be the best tier 1 blockchain behind Ethereum. Solana is up about 5% over the past 30 days, suggesting that investors may be looking for another cryptocurrency to take on Ethereum and lead the market higher. New data shows that Solana is rapidly gaining ground on Ethereum in the irreplaceable token market.
Solana has also been on fire lately with all its new innovations, including the announcement of the world’s first crypto phone over the summer. The official launch of this crypto phone is scheduled for January 2023, so stay tuned for what Solana may announce as part of its mobile crypto strategy in October.
Finally, we have XRP, which was actually one of the best performing cryptocurrencies in September, thanks in large part to positive news regarding the ongoing litigation with the Securities and Exchange Commission. Currently, the market believes that XRP will receive some positive news surrounding a possible settlement with the SEC by the end of the year, and this has led to a spike in the value of XRP. Over the past 30 days, XRP, a money transfer and payment system, has jumped a staggering 45% to around $0.48. Is XRP Overbought Due To All The Speculative Foam Around Legal News? We’ll find out in October.
Crypto indicators for October
As people keep talking about “crypto winter‘, it may be difficult to change the crypto narrative if we don’t see positive signs of market recovery before the weather gets much colder. That’s why I’m mainly focusing on the performance of Bitcoin and Solana in October.
The evolution of Bitcoin will tell me a lot about the evolution of cryptocurrency in a difficult macroeconomic situation. Solana’s performance could be the key to the blockchain ecosystem heading into 2023. XRP will give me some insight into how speculative altcoins may perform for the rest of the year. Is the cryptocurrency market strong enough for a long and sustainable recovery? Let’s hope crypto won’t be too scary for investors come October.
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