Crypto Price Analysis: Cardano, TRON, and EOS Are Ripe for a Bounce
After having a strong second quarter in 2019, Cardano (ADA/USD), TRON (TRX/USD), and EOS (EOS/USD) have all succumbed to profit-taking this quarter. All three crypto tokens have suffered losses of over 50 percent in a span of two months. While this development sounds bearish, we believe that these three cryptocurrencies are due for a relief rally. In this article, we’ll reveal the reasons why Cardano, TRON, and EOS are ripe for a bounce.
After posting a 2019 high of $0.10649 on June 26th, Cardano lost all bullish steam. Recently, this crypto dropped to as low as $0.04448. The good news is that the market appears to be respecting key support level of $0.046.
A quick look at the daily chart shows that Cardano is showing multiple bullish signals. First, it successfully retested support of $0.046. Also, it is flailing a bullish divergence on the daily RSI while trading close to oversold conditions. Lastly, it is attempting to break out of a falling wedge.
If you’re interested in playing the bounce on this crypto, buy as close to support of $0.046 as possible. The initial target is $0.06.
TRON has been at the center of controversy over the last few weeks after its founder Justin Sun canceled his lunch appointment with Warren Buffett. The development did not do TRON any favor as the crypto plunged to lows of $0.015895 on August 15th.
An analysis of TRON’s daily chart reveals that the cryptocurrency is showing signs of bearish exhaustion. For instance, the daily RSI is in oversold territory. In addition to that, volume has been anemic. This indicates that sellers are losing interest in dumping positions at this level.
Lastly, we can see TRON forming a falling wedge with the apex of the structure very close to support of $0.016.
The strategy for bottom pickers here is to buy as close to $0.016 as possible. The quick target for the bounce is $0.021.
EOS is another solid bottom-picking crypto token prospect. It is now trading close to our range support of $3.50. If bulls can stay above the support, we might see the cryptocurrency ignite a strong bounce.
Just like Cardano and TRON, EOS is forming a falling wedge while trading in oversold territory. Also, volume has been anemic which tells us that bears are losing ammunition.
The key level to maintain for the bulls is $3.50. If they do they do that, we can see EOS climbing quickly to $5.22.
Many altcoins have suffered massive losses against their USD pairs over the last few weeks. However, a few of them are already showing signs of bearish exhaustion. Cardano, TRON, and EOS are some of the names that are ripe for a bounce. Keep in mind: we’re only playing for the bounce. Thus, it would be wise to keep your stops tight.
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.