The month of January is nearly halfway through, and the crypto market has had a subdued start to 2025. With Bitcoin struggling to break past the $95,000 mark, altcoins have faced challenges in recovering or posting significant rallies.

However, several external factors indicate that some tokens could see notable developments soon. BeInCrypto has analyzed three such altcoins that would be important to watch.

Shiba Inu (SHIB)

Shiba Inu’s price has been trading within a falling wedge for the past month, a formation that often signals potential bullish movement. After retesting the lower trend line, SHIB appears poised to breach the upper boundary, creating anticipation for a breakout.

If a breakout occurs, the altcoin could target $0.00002279 as its next resistance level. The falling wedge pattern suggests a potential 49% rally, which could propel SHIB toward $0.00003325, restoring optimism among investors and signaling a strong recovery.

However, if Shiba Inu fails to sustain momentum and falls below the lower trend line, it risks further declines. Such a drawdown could push SHIB toward the $0.00001922 support level, invalidating the bullish outlook and leaving the altcoin vulnerable to additional losses.

Fantom (FTM)

Fantom’s price has been underperforming recently, but upcoming developments could shift its trajectory. The token swap from FTM to S is set to begin this week, offering a possible catalyst for improved market sentiment and price movement.

Investors will have the option to swap their tokens for free over the next three months. This feature could generate significant attention and encourage bullish momentum, pushing FTM’s price above the $0.76 resistance level and potentially toward $0.87 in the short term.

However, if investor response to the token swap remains lukewarm, Fantom could struggle to break past $0.76. In this case, the cryptocurrency risks falling below its critical support level of $0.63, invalidating the bullish outlook and extending its current underperformance.

Degen (DEGEN)

DEGEN has been caught in a downtrend over the past week, with its price currently sitting at $0.0088, below the $0.0092 support level. This decline highlights ongoing bearish pressure, leaving investors cautious about short-term recovery prospects.

However, the upcoming liquidity mining airdrop on January 15 could attract significant attention and capital. This event has the potential to reverse the downtrend, pushing DEGEN’s price toward $0.0117. Breaking this resistance could pave the way for a rally to $0.0148, restoring confidence among investors and making it a key altcoin to watch.

If the downtrend persists, DEGEN’s price could drop to $0.0078, testing a critical support level. A failure to hold this support could lead to further declines, with the price potentially falling to $0.0071, invalidating the current bullish outlook.