Crypto Price Analysis: 5 Altcoins to Watch This Week
With Bitcoin still struggling to stay above support of $9,600, we are expecting the Bitcoin Dominance Index to plummet this week. In other words, altcoins that have been severely battered by the leading crypto’s parabolic run will likely experience a relief rally.
Thus, for this week, we continue looking at cryptos in their BTC pairs. However, we’ll focus on low cap coins that are trading near a strong support level. The strategy is to bottom pick these cryptocurrencies while placing tight stops. Here are the five crypto tokens to watch this week.
WaltcoinChain is a solid bottom-picking crypto candidate. The cryptocurrency has been trapped in range accumulation between 0.000115 and 0.00025 with range midpoint at 0.0001825. Currently, the coin is trading near the range support while flashing bullish signals.
A look at the daily chart shows that the coin is printing a bullish divergence. This indicates that bulls are gathering significant momentum. Also, volume looks thin which tells us that sellers are losing interest in dumping positions at current levels.
Thus, the strategy is to buy as close to 0.000115 as possible with a tight stop. The targets are 0.0001825 first and then 0.00025.
0x is in a brutal downtrend. This crypto is almost 80 percent year-to-date. The three-day chart tells us that the selling is not yet over.
The good news is that the end is in sight.
0x is trading very close to its historic support of 0.000013. In addition, the coin is flashing oversold signals on the three-day RSI. Therefore, the strategy is to buy as close to historic support of 0.000013 as possible. If bulls can hold this level, it is likely that the price will bounce to our targets of 0.0000255 and 0.000032.
DigiByte is in the same boat as 0x. It is trading near its key support area of 0.00000072. It is also trading in oversold territory in the three-day RSI while flashing a bullish divergence. These signals tell us that this crypto is likely preparing for a bounce.
For those interested in placing long positions, buy as close to 0.00000072 as possible. The targets are 0.00000136 and 0.000002.
Qtum is in the same place as DigiByte and 0x. The crypto is trading very close to its historic support. Also, its three-day RSI is in oversold territory while flailing a bullish divergence. The combination of oversold readings as the price trades near a key support area has been a tried and tested formula for a bounce.
If you’re interested to bottom-pick the market, buy as close to our range low of 0.0002. Targets are 0.00035 and 0.0005.
Our last bottom-picking entry for the week is Populous. The crypto is trading very close to support of 0.00005. If bulls can hold that level, we can expect the coin to muster a strong rally.
Just like our other selections for this week, Populous is flashing a bullish divergence while trading near a key support area. Thus, if you want to open long positions, consider buying as close to 0.00005 as possible. Our targets are 0.0000798 and 0.0001090.
Bottom Line: Buy Crypto Tokens at Support Levels
Many coins are trading close to their historic lows. While this may be an ultra bearish signal to some traders, bottom pickers see this as an opportunity to buy at dirt cheap prices. As long as you place tight stops, your risk to reward ratio for buying the support and selling the resistance should be high.
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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