Crypto Price Analysis: 5 Altcoins to Watch This Week
All of the five altcoins on last week’s list moved according to expectations. Ripple (XRP/USD) led the charge as it bounced off a critical support level. Ethereum (ETH/USD), EOS (EOS/USD), and Monero (XMR/USD) closely followed suit. All these coins managed to stay above their respective key price areas and kept their bullish momentum alive. Lastly, Basic Attention Token (BAT/USD) continues to nosedive as predicted. We’ll wait for it to drop to as low as $0.30.
This week, we switch to BTC pairs. Many altcoins including large caps have been so battered that they’ve become attractive for bottom picking. Here are the five altcoins to watch this week.
Ethereum may look like it is hanging on for dear life. If you agree with this statement, consider double-checking your bias. The market has plummeted so much that it is in a position to pull off a massive rally.
A quick look at the daily chart reveals that ETH/BTC is beginning to stabilize at support of 0.0284. We have this view because the market has refused to go below this level so far. On top of that, Ethereum has printed a double bottom pattern on the daily RSI.
Daily chart of ETH/BTC
Those who plan to go long at current levels should do so with a tight stop. In case 0.028 holds, the target is range high of 0.41.
Ripple is in the same boat as Ethereum. It looks bad but it offers the rare chance to buy at deeply discounted prices.
A look at the daily chart shows that Ripple is headed to support of 0.00005. This level is interesting because the market skyrocketed as soon as it took out 0.00005 on September 20, 2018. This means that XRP/BTC never really retested this support.
Daily chart of XRP/BTC
Fortunately, technical indicators favor bulls. The daily RSI is in oversold territory while printing a bullish divergence. Should Ripple preserve 0.00005, the initial target is 0.00006. Otherwise, we might see Ripple plunge to 0.00004.
It seems like it was just a few weeks ago when Cardano looked unstoppable. Now, it is back to where it started the monster rally that saw the market climb to 0.00001944 on April 3rd.
Daily chart of ADA/BTC
The good news is that Cardano is oversold just as it is about to hit support of 0.000011. If this level holds, we can expect the market to trade in a wide range for the rest of the year. The key levels to look at are 0.000011 and 0.0000195 with the midpoint at 0.0000152.
TRON looks like a solid bottom picking selection. It has been correcting since the end of January 2019. More importantly, it has finally retested a key support level.
On December 19, 2018, the market broke out of a double bottom pattern when it breached resistance of 0.000004. This ignited a massive rally that drove TRON to as high as 0.00000863 on January 10th. In the process, however, the market did not retest 0.000004.
Daily chart of TRX/BTC
Five months later, TRON is back at 0.000004. This is the first time that TRON is tapping this area as support after the December 2018 breakout, so it is very likely to hold. In addition, a bullish divergence can be spotted on the daily RSI.
If bulls protect 0.000004, we have a new 2019 range for TRON. 0.000004 is the range low, 0.00000825 is the range high, and 0.00000613 is the midpoint.
Dogecoin Price (DOGE/BTC)
Our final bottom picking entry for the week is Dogecoin. DOGE/BTC is trading at our line the in sand of 0.00000045. A move below this level can be disastrous for the market. However, should the support hold, Dogecoin might bounce to immediate resistance of 0.00000056.
Daily chart of DOGE/BTC
If you want to trade this altcoin, we suggest that you wait for the market to spend a few days above 0.00000045. Even if you miss a few points, patience is better than catching a falling knife.
Many altcoins have been crushed over the last few weeks. This week, however, they might start to recover. Keep your stops tight and follow the levels we mapped and you should be alright.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.