Crypto Price Analysis: 5 Altcoins to Watch This Week
Four out of the five altcoins on our last week’s list moved according to our expectations. Last week, we predicted that many coins will correct due to overbought conditions and they did. What’s even more amazing is that our support levels have been respected.
Cardano (ADA/USD) led our pullback group as bulls defended support of $0.08. It is followed by NEO (NEO/USD), Stellar (XLM/USD), and VeChain (VET/USD). While these coins temporarily dipped below our support, bulls quickly bought the dip and preserved the demand area.
TRON (TRX/USD) was the only one that disappointed because it was our only bullish pick last week. We expected the market to take out resistance of $0.03 but instead, it corrected along with every other altcoin.
This week, we look at large cap altcoins that have gone through significant correction and may restart their bullish trend this week. Here are the five altcoins to watch this week.
We start this week’s list with our alpha bull: Litecoin. The market maintains its position at the top of the bull chain even after last week’s correction. It dropped to as low as 0.01501 on April 11, 2019 but bulls immediately bought the dip. As a result, Litecoin has successfully flipped resistance of 0.015 into support.
Daily chart of LTC/BTC
In addition, Litecoin is no longer in overbought territory. On top of that, volume has been on a decline, which means that sellers are likely exhausted. If bulls continue to defend 0.015, our targets are 0.019 and 0.021.
Ethereum is taking its sweet time in range accumulation but something tells us that the market is simply preparing for a face-melting run. A look at the 12-hour chart shows that the pair has formed a double bottom pattern at support of 0.032. If the pattern holds, we might see Ethereum competing for the alpha bull status.
12-hour chart of ETH/BTC
With volume and RSI down, the market looks prime for a bounce. Initial target is 0.035. Take that out and Ethereum might rally to as high as 0.0417.
Bitcoin Cash (BCH/BTC)
Bitcoin Cash is giving us solid bullish price action. While it topped out at 0.067299 on April 3rd, it managed to flip resistance of 0.052 into support on April 11th. Keep in mind, the market struggled to go above this level for five months. Thus, the successful retest of 0.052 as support is bullish.
Daily chart of BCH/BTC
Currently, Bitcoin Cash is still trading near overbought conditions. It needs to consolidate further before it can take out resistance of 0.064. If you’re a bottom picker, our buy zone is between 0.05 and 0.052.
A breach of 0.064 resistance will likely catapult Bitcoin Cash to as high as 0.08.
TRON has been correcting ever since it topped out at 0.00000863 on January 10, 2019. However, it seems that the distribution is almost over as the market attempts to establish a durable support at 0.000005.
Daily chart of TRX/BTC
A look at the daily chart shows that TRON has a chance of maintaining its bullish momentum if it can stay above support of 0.000005. Fortunately, the 200-day MA is acting as support. This will help bulls establish a new base so they can target 0.00000629 and 0.0000075.
A move below the 0.000005 level is bearish and may send the market to 2018 lows of 0.000003. If you like TRON, watch how the market trades this week.
Dash is the last altcoin to join this week’s list. We decided to include it after it successfully retested 0.023 as support. The price action is bullish. It sets Dash up to paint a large inverse head and shoulders pattern on the daily chart.
Daily chart of DASH/BTC
Those who bottom pick the market at 0.023 may be able to take profits at 0.027 and 0.033. You can also just hold on to your positions because Dash will likely start a monster bull run once it takes out resistance of 0.033.
Last week’s correction gives us an opportunity to buy altcoins at great entry points. This is why we always say to wait for the pullback. You’ll be able to get your favorite coins at a discounted price with relatively limited downside.
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.