Crypto Price Analysis: 5 Altcoins to Watch This Week
The correction continues for the second straight week as many altcoins dumped over the weekend. Even with the ongoing correction, four out of the five altcoins on last week’s list defended our buy zones and moved according to our expectations. The list is spearheaded by Ethereum (ETH/BTC), which is managing to hold support of 0.032. It is closely followed by Bitcoin Cash (BCH/BTC) as it is now trading closer to support of 0.052. Lastly, Dash (DASH/BTC) and Litecoin (LTC/BTC) may be correcting harder than expected but both coins are still within our buy zones.
TRON (TRX/BTC) was the only one that disappointed as it breached support of 0.000005. It is also now trading below the 200-day moving average (MA) which tells us that the market has more downside potential.
This week, we look at large cap altcoins that are managing to hold on to key support areas despite the recent dump. Here are the five altcoins to watch this week.
The market structure of EOS looks solid. Even with the pullback, the chart tells us that there’s a lot of room for growth. Yesterday, April 21, 2019, EOS dropped to 0.0009542 but the market refused to go lower. This was not a coincidence. On September 1, 2018, EOS rallied to 0.0009544 but it refused to go higher. Thus, yesterday’s price action is a classic case of flipping a resistance into support.
Daily chart of EOS/BTC
In addition to the horizontal support, the diagonal support tells us that the uptrend is still intact. Thus, our buy zone here is between 0.00091 and 0.000955. As long as bulls respect this level, the next target is 0.0012.
Just like EOS, the recent pullback of Caradno may also suggest a flipping of a former resistance into support. In Cardano’s case, that price area is 0.00001354.
Daily chart of ADA/BTC
It might look like Cardano suffered a deep correction from the high of 0.00001944 on April 3rd but the price action is bullish from a long-term perspective. When the market breached resistance of 0.00001354 March 22nd, it rallied so hard that no time was given for consolidation. This pullback resets technical indicators and gives Cardano a chance to build a new base for a more sustainable uptrend.
As long as Cardano trades above 0.00001354, the initial target is 0.0000195.
If you’re a fan of Stellar, this might be your final chance to buy positions at dirt cheap prices. The drop to support of 0.000021 on April 21st was a clear signal that the market is in range accumulation. It also tells us that 0.000021 is very likely to be the bear market bottom.
Daily chart of XLM/BTC
A quick look at the daily chart shows that Stellar is forming a double bottom pattern. The daily RSI supports this view as it prints a large bullish divergence. Thus, we expect the market to accumulate at 0.000021. As long as Stellar is above this level, the target is the range high of 0.00002978.
After trading above range high of 0.0024 for a few days at the start of April, NEO pulled back and failed to flip the resistance into support. As a result, the market continued to plunge. Fortunately, it seems that bulls are determined to defend the range midpoint of 0.002.
Daily chart of NEO/BTC
As long as bulls stay above the range midpoint, NEO has a solid chance to finally flip the range high of 0.0024 into support. Our targets are 0.0024 and 0.0027.
Ethereum Classic (ETC/BTC)
Ethereum Classic is our second bottom picking selection for the week. The market managed to tap range high of 0.0015 on April 7th. From that point, Ethereum Classic has been correcting. It broke range midpoint of 0.00128 on April 11th. This tells us that the market is headed to the range low of 0.00107.
Daily chart of ETC/BTC
If the range support of 0.00107 holds, Ethereum Classic will paint a triple bottom pattern. This formation will likely ignite a bounce to our targets of 0.00128 and 0.0015.
The recent correction is giving us clear buy levels. Support and resistance areas have been mapped out for you. Have fun trading this week.
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.