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As the altcoin market witnesses a resurgence in activity, tokenized real-world assets (RWA) are worthy of your attention as a trader.
For those seeking to diversify their portfolios, this analysis spotlights some RWA-based altcoins that may offer gains in October.
Pendle (PENDLE)
PENDLE, the utility token for the Pendle protocol, has seen a sharp rise in value, climbing 27% over the past week, making it one of the key Real World Asset (RWA) altcoins to watch in October. Currently trading at $4.34, PENDLE has maintained a strong upward trajectory, trading above an ascending trend line in recent weeks.
This trend line indicates sustained market demand and upward momentum. If PENDLE remains above this line, its main target in the coming weeks will be the key resistance level of $6.31. However, if selling pressure increases, the price could drop below the trend line, potentially reaching $3.16.
Read more: Real World Asset (RWA) Backed Tokens Explained
It’s also important to consider the ongoing token unlocks. Pendle Protocol is set to initiate a new token unlock starting on October 2, during which 31,210 PENDLE tokens will be unlocked daily for seven consecutive days.
While this gradual release isn’t large enough to cause a significant price drop, it does increase the circulating supply, which could put slight downward pressure on the token’s value.
Avalanche (AVAX)
AVAX, the native token of the Layer-1 blockchain Avalanche, has seen an 8% spike in value over the past week, trading at $27.94 as of this writing. According to its daily chart, AVAX is nearing a significant resistance level of $28.66, which has been holding since July.
The rising Balance of Power (BoP), an indicator that measures the strength of buyers relative to sellers, suggests that a breakout above this level may soon occur. At press time, AVAX’s BoP stands at 0.64, signaling that buyers currently have more control over the market. If this buying pressure continues, AVAX could surge toward $55.07, a considerable price target.
However, should the attempt to break through the $28.66 resistance fail, the price could drop toward $17.33, as weaker buying momentum may push AVAX back toward lower support levels.
VeChain (VET)
Powered by its VET token, VeChain has emerged as a pioneer in real-world enterprise applications. The recent surge in the token’s value makes it one of the key RWA assets to watch. Currently trading at $0.02, VET has seen a 14% rally over the past week, indicating the potential for continued gains.
According to its daily chart, VET recently broke above a descending triangle, a bullish technical pattern, signaling an uptrend. If the token successfully retests the breakout line, this will confirm the continuation of the uptrend, positioning VET to potentially reach $0.04 in the coming weeks.
However, if the retest of the breakout line fails, VeChain’s VET token could lose momentum and slip below the descending triangle’s support line. In such a scenario, VET’s price might drop to $0.01.
Ondo (ONDO)
ONDO is currently trading at $0.78, having experienced a 24% price hike over the past week. The growing demand for the altcoin is reflected in its rising Relative Strength Index (RSI), which tracks market conditions to identify whether an asset is overbought or oversold. At press time, ONDO’s RSI stands at 66.87, indicating strong buying activity and suggesting the potential for an extended rally.
If the current upward trend continues, ONDO’s price could reach $0.87 in the short term. Further momentum could push the price up to $1.09 if the rally persists. However, if selling pressure increases, ONDO’s price may face a decline, potentially dropping toward $0.50.
Chainlink (LINK)
Beyond the broader market sentiment, Chainlink’s (LINK) 10% price increase over the past week has been fueled by a rise in user activity on the network. On-chain data shows a 13% increase in unique active addresses trading LINK in the past seven days.
Additionally, demand for the altcoin has surged, with the creation of new addresses for LINK trading spiking by 29% during the same period. If this demand remains strong, LINK could extend its gains to $15.47.
Read more: How To Invest in Real-World Crypto Assets (RWA)?
However, if accumulation slows down, a pullback to $11.24 is possible. Traders should watch for signs of continued demand or potential weakening in accumulation activity.