3 Altcoins to Watch as Israel-Iran Conflict Crashes Crypto Markets

Israel confirmed today that they attacked Iran, which Iran declared a "declaration of war". Amid this conflict, global stock markets declined while oil prices soared. The cryptocurrency market, similar to stocks, experienced a downturn with a 24-hour drop that wiped out $221 billion at one point.

BeInCrypto analyzed three altcoins in a downtrend, which, despite losses, still have recovery potential.

Hyperliquid (HYPE)

HYPE experienced a slight decrease today but remains one of the best-performing tokens this month. This altcoin recently reached a new All-Time-High (ATH) and is currently only 9% away from breaking that record again, with the current price at $44.02.

MACD, which has switched between decreasing and increasing momentum, is now recording an upward crossover. This makes HYPE likely to bounce from the support level at $39.02. This could set the stage for a potential breakout of $44.02 and form a new ATH around $50.00.

However, if investors decide to dump, HYPE's price could slip below the $39.02 support, then $36.47, potentially dropping to $31.26. This would invalidate the price increase prospects and hinder any further price growth for the token.

SPX6900 (SPX)

SPX's price dropped 15.5% in the past 24 hours, trading at $1.36. After nearly reaching an All-Time-High (ATH) of $1.77, this altcoin is now heading towards the $1.20 support level. This decline follows broader market corrections and could extend if momentum weakens.

The Relative Strength Index (RSI), previously in the overbought zone, indicated that a correction was inevitable after a 50% increase. As RSI returns to a positive zone, upward momentum is likely to continue. This suggests a potential new ATH might be waiting for SPX in the near future.

However, if broader market conditions do not align with SPX's momentum, a decline below the $1.20 support will push this altcoin to $0.98. Such a move would invalidate the current price increase prospects, shifting market sentiment towards a potential downward trend.

Immutable (IMX)

IMX is moving in the opposite direction of other altcoins. After dropping 15% in the past 24 hours, this altcoin is still 21% away from its All-Time-Low (ATL) of $0.34. This decline suggests further potential decrease, continuing the short-term downward trend.

While forming a new ATL for the second time in two months, IMX may experience a rebound similar to previous instances. The last time this altcoin formed a new ATL, the RSI was nearly in the oversold zone, leading to a reversal and significant price increase. A similar scenario is predicted to occur soon.

However, for IMX to recover from the new ATL, increased demand from investors or favorable market conditions are needed. Without this support, a further decline below the $0.39 and $0.34 support levels could consolidate the downward trend, leading to the formation of a new ATL.