Although July was largely bearish for the cryptocurrency market, some of the altcoins posted significant gains, reversing the bearish trend in the process. These five tokens, pictured below, could attract attention in August.
The Litecoin (LTC) network will see its long-awaited halving on August 2. Horizen (ZEN) and ICON (ICX) will launch important testnets. Tezos (XTZ) is organizing a big event, and Ultra (UOS) will be unveiling a new gaming platform.
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Halving the Litecoin (LTC) network could lead to a price hike
- Price: $91.50
- Market capitalization: $6.65 billion
- Position in cryptocurrency rankings: #12
When the Litecoin project first appeared, miners were rewarded with 50 LTC for each block mined. After 840,000 blocks have been mined (approximately every four years), the reward is halved. This event is what is called halving. It is being done for deflationary purposes and will continue until the reward per block is zero.
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The current reward per block is 12.5, but today, August 2, the third halving will occur and the reward will be reduced to 6.25 coins per block.
Ahead of this event, the price of LTC has been showing bullish signs. It made a bullish breakout from the descending wedge that has been present on the chart since July 3. Exits from such structures often lead to significant upward movements. Shortly after, however, LTC pulled back to pre-breakout levels.
LTC’s breakout was not the only thing that happened.
Source: TradingView
If the token continues to rise, the next resistance will come into play at $102, which is 13% above the current price.
If the token continues to rise, the next resistance will come into play at $102, which is 13% above the current price.
The bullish breakout will be canceled, however, if LTC falls below the $90 breakout level. In this case, the price could correct to $82, a 9% drop.
What is Litecoin halving and how will it affect the price of LTC
Icon (ICX) launches testnet
- Price: $0.22
- Market capitalization: $211.9 million
- Position in cryptocurrency rankings: #158
From July 31, ICX launched the XCall Incentivized Testnet, which offers incentives to community members for helping with developments. The test network will focus on testing various functionalities, decentralized applications and toolkits. You can get up to 845,000 ICX for quality contributions.
According to technical analysis, ICX price made a bullish breakdown of the descending resistance line on June 22nd. Despite the breakout, the price failed to overcome the horizontal resistance area of $0.25. On the contrary, it bounced off it twice and formed a declining high (red icon). This is a bearish sign, which suggests that the breakout may have been false.
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So, the trend on ICX cannot be considered bullish until the price rises above the $0.25 resistance area.
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Source: TradingView
If the breakout is successful, ICX could rise to the next resistance at $0.55. That would represent a 55% increase. However, if the bulls fail, the price could fall 22% to the $0.17 area.
Horizen (ZEN) and another testnet
- Price: $9.49
- Market capitalization: $132.7 million
- Position in cryptocurrency rankings: #211
In the upcoming mandatory ZEN 4.1 software update. support for Horizen core network shielded pools will be discontinued. Thus, the update will remove support for confidential transactions at the consensus level and the ZEN token will no longer be anonymous.
The update will also remove support for confidential transactions at the consensus level and the ZEN token will no longer be anonymous.
The anticipated release schedule for the update is as follows:
- Testnet: August 2023
- Mainnet: September 2023
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The price movement of ZEN is very similar to that of ICX. Although the price made a breakdown of the descending resistance line, it failed to overcome the key horizontal resistance at $9.45 level. On the contrary, it pulled back from it three times, forming long upper wicks (red icons).
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Source: TradingView
The coin has since reclaimed this resistance level, but another bounce could push ZEN back to the downside resistance line at $7, which is 25% of the current price.
Another bounce could take ZEN to the downside resistance line at $7, which is 25% of the current price.
Another bounce could take ZEN to the downside.
On the other hand, if the breakout is successful, ZEN could rise 60% to reach $15. For the moment, the upcoming testnet supports the bullish momentum of ZEN.
Tezos is organizing the event
- Price: $0.84
- Market capitalization: $797.8 million
- Position in cryptocurrency rankings: #57
Tezos is hosting a meetup in London on August 2, which will include a DeFi workshop on decentralized exchanges that provide liquidity.
In early July, the XTZ price made a breakout of the descending resistance line. While usually the breakout of such structures is responsible for significant growth, this was not the case with Tezos. On the contrary, the token has been treading around the breakout level ever since.
The token has been treading around the breakout level ever since.
Source: TradingView
If growth is never triggered, XTZ could fall to a one-year low of $0.70, which is 17% below the current price. However, if the rise continues, the price could strengthen by 45% and reach the next resistance at $1.20.
Ultra (UOS) launches gaming platform
- Price: $0.17
- Market capitalization: $47.2 million
- Position in cryptocurrency rankings: #426
Ultra arena kicks off on August 8. It is an online tournament platform that will allow gamers to compete with friends in their favorite games and win various prizes. Arena will be available on the Ultra platform.
This launch could give a much-needed boost to the UOS price, which has already nearly broken through the support area of the yearly low at $0.17.
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Source: TradingView
If this bearish breakout is confirmed, a 40% drop in the price to the next closest support at $0.10 is possible. On the other hand, if there is a rebound, the UOS could rise by 30%.