Top 5 altcoins to watch in the crypto market in May 2023: Avalanche (AVAX) will hold its second annual summit in Barcelona between May 3 and 5. Vechain (VET) will release a mobile wallet upgrade, while Lido DAO (LDO) and eCash (XEC) will undergo a network upgrade. Gala (GALA) will issue a token drop.
The term altcoin refers to cryptocurrencies other than Bitcoin (BTC). Below, 5 altcoins that have positive developments lined up in May are analyzed in order to assess their potential.
Avalanche (AVAX) Holds Annual Summit
Market Cap: $5,614 billion
The second Avalanche summit will be held between May 3 and 5. It will feature more than 300 speakers and have over 125-panel sessions with various blockchain topics.
The summit could provide a much-needed boost to the AVAX price, which has fallen under a descending resistance line since the beginning of February.
The price also deviated above the resistance line (red icon) in the middle of April before falling below it afterward. Now, the altcoin price is trading at an ascending support line (dashed) that has been in place since the beginning of the year.
Combined with the resistance line, this creates a symmetrical triangle, which is considered a neutral pattern. Therefore, it suggests that both a breakout and breakdown are possible.
The digital asset could move to the $21.50 resistance area if a breakout occurs. However, if a breakdown occurs, a decrease to $15 could be on the cards.
Gala (GALA) Will Issue Token Drop
Market Cap: $265 million
The launch of GALA(v2) will be on May 15. This upgrade will bring various new improvements, such as enhanced burn and security mechanisms. All GALA(v1) holders will receive the new token in a 1:1 drop, after which the GALA (v1) token will no longer be supported.
Despite the positive news, the altcoin broke down from an ascending support line on April 25. Previously, the line had been in place since the beginning of the year. Such breakdowns usually mean that the previous trend has come to an end.
If the drop continues, the closest support area will be at $0.031. On the other hand, if the GALA price reclaims the support line, it could increase to the next resistance at $0.049.
eCash (XEC) Undergoes Network Upgrade
Market Cap: $566,144 million
The eCash network will undergo a major upgrade on May 15. The upgrade will include numerous features, such as removing the chained transactions limit and moving miner funds out of consensus rules.
Similarly to AVAX, the XEC price trades inside a symmetrical triangle considered a neutral pattern. If it breaks down, the next closest support will be at $0.000026. However, if a breakout ensues, the next resistance will be at $0.000033.
Lido DAO (LDO) Mainnet Upgrade Launch
Market Cap: $1,780 billion
Lido DAO is expected to release its new mainnet upgrade in the middle of May. While this is a positive development, the price action shows bearish signs. The LDO price is struggling to initiate a bounce at the $2 horizontal support area. Additionally, it has created a head and shoulders, which is considered a bearish pattern.
If the altcoin breaks down from the $2 area, it could fall to $1.30. This bearish forecast will be invalid if LDO bounces instead and breaks out from its descending resistance line. In that case, the price can increase to $2.80.
Vechain (VET) Releases Wallet Upgrade
Market Cap: $1,592 billion
The VechainThor mobile wallet upgrade will take place on May 4. This may provide a much-needed boost to the VET price, which struggles to initiate a rally from the $0.022 support area. Besides being a horizontal support area, this is also the 0.618 Fib retracement support level.
If it is successful, an increase to $0.027 can follow. However, a breakdown from it can lead to a fall toward the $0.020 support area.
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