Crypto Update: 5 Altcoins to Watch This Week
Santa was in town last week as four out of the five altcoins we included on last week’s list made big moves. Ripple (XRP/BTC) led the charge as it was up by over 16% on December 24. Stellar Lumens (XLM/BTC) followed suit, while both EOS (EOS/BTC) and Litecoin (LTC/BTC) broke out of their short-term consolidation patterns.
We’ll do something different this week. With so many altcoins pumping over the last few weeks, it only makes sense to look for coins that are pulling back. These altcoins will likely provide opportunities that enable you to enter at a price area where the risk to reward ratio is favorable.
Here are the five altcoins to watch this week.
On our December 20, 2018 trade recommendation, we said that if Ethereum can stay above 0.026746, it will likely skyrocket to our target 0.036388. The target was hit on December 24. Since then, Ethereum has been struggling to take out resistance of 0.036388.
Daily chart of ETH/BTC
The overbought signals on the daily RSI on top of the waning volume suggest that Ethereum is bound for a short-term correction. The initial level of interest to buy back is 0.03157. This area has a very good chance to hold as we have the 100 MA acting as support at this level.
On the off chance that bulls fail to defend 0.03157, Ethereum will likely spark panic selling and revisit 0.026746.
NEM is showing good bullish price action. It broke out of an inverse head and shoulders pattern when it breached resistance of 0.0000176 on November 26. More than one month later, the market is now in the process of flipping the support into a resistance. If this level holds, NEM might catapult to 0.00002509.
Daily chart of XEM/BTC
NEM appears to be in a very good position to hold this support. Volume has been significantly declining since the breakout, which is a characteristic of a bullish throwback. Bulls are likely to defend the support with the selling volume fading.
In case bears breach the support, NEM can rely on the 100 MA to serve as support.
Stratis appears to be in the same boat as NEM. It also recently reversed its trend and it is now in the process of pulling back. We are looking at 0.0000292 as a possible level to enter long positions.
Daily chart of STRAT/BTC
With volume declining and the RSI cooling off, bulls appear poised to successfully retest 0.0000292 support. Though it’s slightly below this level now, this may be a bull trap. If this level recovers in the next few hours, we can expect STRAT/BTC to climb to our range midpoint in the short-term.
On the other hand, a confirmation of the breach of 0.0000292 might send Stratis down to 0.00002678.
Decred also pumped on December 24 but the move up was met by heavy selling. By the end of the day, Decred traded below weekly resistance of 0.00501. This was a bearish price action suggesting that the market is headed lower.
Weekly chart of DCR/BTC
If our read is correct, Decred is likely en route to weekly support of 0.0034. At that point, the market would be very interesting to bottom pickers and bargain hunters. 0.0034 is a key area for Decred. The last time it hit this level, the market skyrocketed to 0.0177.
BitShares is fast approaching our bottom picking targets of 0.00000934 and 0.0000085. If one of these two levels hold, BitShares might explode.
Weekly chart of BTS/BTC
A look at the weekly chart shows that the market is in a strong downtrend. However, it is also due for a strong bounce. If BitShares respects one of our bottom picking targets, 0.00001421 appears to be the destination of the bounce.
We have no further guidance below 0.0000085 so set tight stops if you plan on placing buy orders.
With so many altcoins pumping over the last few weeks, this week’s edition focused on alts that are likely to considerably retrace. This should give you the chance to enter at a price range where the risk to reward is favorable. Thus, you have no reason to feel the fear of missing out.
Featured image courtesy of Shutterstock.