TOP 3 altcoin to watch as the Israel-Iran conflict weakens the crypto market

Yesterday, Israel officially confirmed carrying out an airstrike against Iran — a move that has led Tehran to accuse it of being a "declaration of war." In the context of rapidly escalating geopolitical tensions, global stock markets collectively plummeted, while oil prices rose to the sky. The cryptocurrency market was also not spared from the wave of sell-offs, with a total market capitalization being wiped out by up to 221 billion USD at the deepest drop of the day.

Bitcoin magazine has analyzed three prominent altcoins amid this wave of price decline. Despite suffering losses, these coins still have significant recovery potential.

Hyperliquid (HYPE)

Despite recording a daily adjustment, HYPE still maintains its position as one of the top-performing tokens of the month. This altcoin has just set a new all-time high (ATH) and is currently only about 9% away from that mark, with trading prices fluctuating around $44.02.

HYPE/USDT daily chart | Source: TradingViewNotably, the MACD indicator – which often fluctuates between two extremes of rise and fall – is showing signs of a crossover in a positive direction. This development opens up the possibility that HYPE will bounce back from the key support area at $39.02. If this scenario materializes, the price could completely break through the $44.02 threshold to aim for a new peak around the $50.00 mark.

However, in the event of a sharp increase in profit-taking pressure, the fall of HYPE could break through the $39.02 mark, leading to a decrease to $36.47, and even down to the $31.26 range. This would diminish the bullish outlook and hinder the recovery process of this token.

SPX6900 (SPX)

In the past 24 hours, the price of SPX has plummeted 15.5%, currently trading around $1.36. After nearly establishing a historical peak at $1.77, this altcoin is turning back towards the important support area at $1.20. The strong selling pressure largely stems from the overall market's adjustment trend, and if the momentum continues to weaken, this decline could extend further.

SPX/USDT Daily Chart | Source: TradingViewThe Relative Strength Index (RSI) – which had previously entered the overbought zone – has signaled an inevitable correction after a strong growth streak of up to 50% for SPX. However, once the RSI returns to the neutral or positive zone, the upward momentum may restart, setting the stage for SPX to conquer new highs in the near future.

On the contrary, if market conditions are not favorable, losing the support level of $1.20 could cause the price to drop deeply to around $0.98. This scenario would weaken the current bullish structure, while also shifting investor sentiment to a more negative outlook.

Immutable (IMX)

While most altcoins have seen slight decreases, IMX stands out with a more negative trend. In just 24 hours, this token has plummeted by 15%, bringing its price to only about 21% away from the all-time low (ATL) at $0.34. This development clearly reflects the prevailing downward trend and signals the risk of continuing to slide deeper in the short term.

Daily chart of IMX/USDT | Source: TradingViewHowever, if IMX continues to set a new low – the second time in just two months – a technical recovery may still occur, similar to the previous scenario. In the recent bottoming out, the RSI indicator nearly fell into the oversold zone, which triggered a buying force and drove the price to rise to the sky. Analysts are expecting a similar development to soon repeat.

However, to make that a reality, IMX needs backing from investor demand or a more favorable market context. In the absence of supportive factors, breaking through the two critical support levels at $0.39 and $0.34 could further reinforce the downward trend, pushing the price down to new record lows.

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