Crypto Price Analysis: 5 Altcoins to Watch This Week
Many altcoins in their USD pairs have been retracing over the last few weeks. As a result, some crypto tokens have been driven into oversold conditions and are ripe for bottom picking. For this week, we look at these coins and attempt to play the bounce. Here are the five altcoins to watch this week.
Litecoin is down by over 47% from its 2019 high of $146 as it hovers around $75. The good news is that we can see multiple bullish reversal signals.
First, the cryptocurrency is printing a large falling wedge on the daily chart and the price is trading near its apex. Second, bulls are managing to stay above support of $75. It helps that the market is trading in oversold territory. Plus, volume has dramatically declined which indicates that sellers are losing interest in dumping at current levels.
If you’re interested in opening a fresh long, buy as close to $75 as possible with a tight stop. Targets are $100 and $120.
Monero is a crypto that appears to be a few steps ahead of Litecoin. It has already broken out of a falling wedge. It then converted the previous wedge resistance into support. Now, the privacy coin seems ready to resume its uptrend as it continues to respect its diagonal support.
As long as Monero stays above the diagonal support, the uptrend remains intact. Thus, buy as close to support of $80 as possible. This is the price level where the horizontal and diagonal supports meet. Targets are $98 and $120.
Dash failed to take out our range high of $175 in June 2019 after numerous attempts. This was an indication that the coin was not yet ready to break out of the range. As a result, savvy holders rushed to take profits or cut their losses. This drove the market down to our range support of $90 on August 15th.
The sharp correction pushed the pair into oversold conditions. On top of that, we can see a bullish divergence on the daily RSI. At the very least, we can expect Dash to bounce as it is currently undervalued.
If you’re interested in bottom picking the cryptocurrency, buy as close to our range support of $90. The immediate target is $132. Take that out and $175 is next.
Cosmos is another solid bottom-picking candidate. The market is sitting at its historical support of $2.90. So far, the bulls are showing that they’re ready to protect the support as the price has managed to stay above this level over the last few days.
On top of that, the daily RSI is printing a bullish divergence while trading close to oversold conditions. With these signals, you can buy as close to $2.90 as possible. The targets are $3.84 and $4.78.
Chainlink is our final selection for this week. It is our only buy on the breakout entry as the market is threatening to take out our range high of $2.70 after a month of consolidation.
A look at the daily chart shows that the crypto token has tapped resistance of $2.70 twice in the last 30 days. This tells us that the supply area is nearly drained. This gives the bulls a decent shot at taking out the resistance.
The strategy is to buy on the breakout and retest of $2.70 as support. If bulls can convert $2.70 into support, Chainlink will likely rally to our target of $3.60.
Many crypto tokens have suffered brutal corrections over the last few weeks. Nevertheless, the pullback has driven some coins towards key support areas. These altcoins are ready to be bottom picked as they flash bullish signals. Just follow the key levels that we mapped out for you and keep your stops tight, and you’ll do just fine.
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.
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