Cryptocurrency prices stabilized at the start of the month after a sharp sell-off on Friday, driven by Bitcoin’s options expiry. As Bitcoin rebounded, several altcoins, including Hedera Hashgraph (HBAR), Stellar Lumens (XLM), Algorand (ALGO), and Ondo Finance (ONDO), recorded impressive gains.
Bitcoin’s Recovery Fuels Altcoin Surge
Bitcoin bounced back above $85,000 after plunging to $78,115 on Friday. At press time, Bitcoin was up 2.7%, trading at $84,536—a significant recovery from the week’s lows. This price action followed the expiration of options worth over $5 billion, which helped restore confidence in the market.
Meanwhile, traditional equities also saw a strong rally, with the Dow Jones Industrial Average surging by 600 points, the Nasdaq 100 gaining 95 points, and the S&P 500 climbing by 300 points. As cryptocurrencies often mirror movements in the stock market, this broader market rebound helped push crypto prices higher.
Hedera and Stellar Lead the Altcoin Rally
Among the best-performing altcoins:
- Hedera Hashgraph (HBAR) surged by 25%
- Stellar Lumens (XLM) rose by 16%
- Algorand (ALGO) and Ondo Finance (ONDO) gained over 15%
The rise in these tokens appears to be fueled by speculation that the Securities and Exchange Commission (SEC) is softening its stance on the crypto industry. The SEC has recently dropped lawsuits against major platforms like Gemini, Coinbase, and Uniswap, and is reportedly in discussions with Justin Sun for a settlement.
Potential Spot ETF Approvals Boost Sentiment
With the SEC taking a more favorable approach to cryptocurrency, analysts believe it could soon approve spot ETFs for assets like Litecoin (LTC), Hedera (HBAR), and Stellar (XLM). A spot ETF approval could open the door for institutional investment, driving inflows into these altcoins and supporting their long-term growth.
Technical Analysis: What’s Next for HBAR, ALGO, XLM, and ONDO?
Hedera Hashgraph (HBAR)
- HBAR price bottomed at $0.1807 before bouncing to $0.2360.
- It moved slightly above the 25-day moving average, with momentum indicators turning bullish.
- The next target for HBAR is $0.2586, a key resistance level corresponding to the 38.2% Fibonacci Retracement level.
Algorand (ALGO)
- ALGO remains below the 50-day moving average, signaling that bears are still in control.
- The coin has formed a head and shoulders (H&S) pattern, a bearish technical indicator.
- If the downtrend continues, ALGO could retest the $0.20 psychological level.
Stellar Lumens (XLM)
- XLM peaked at $0.6360 in November 2023 and dropped to $0.2537 on Saturday.
- The token is trading within a descending channel, forming lower highs and lower lows.
- A potential rebound could push XLM toward the upper boundary of this channel at $0.35.
Ondo Finance (ONDO)
- ONDO peaked at $2.1590 in December before falling to the $1 psychological level.
- The token has dropped below the 50-day moving average and the 61.8% Fibonacci retracement level.
- Like ALGO, ONDO has formed a head and shoulders pattern, pointing to further downside, potentially towards $0.80.
Is This a Sustainable Recovery?
While the rally has restored optimism, some analysts caution that this could be a dead cat bounce—a temporary rebound before another decline. Many of these assets remain near their lowest levels in months, and buying interest could be driven by dip-buying rather than fundamental changes.
Hedera, Stellar, Algorand, and Ondo posted strong gains as Bitcoin stabilized above $84K. The SEC’s regulatory shift, potential spot ETF approvals, and broader market recovery are driving optimism. However, technical indicators suggest that some altcoins may still face downward pressure. Investors should watch key resistance and support levels before confirming a sustained uptrend.
