Crypto Update: 5 Altcoins to Watch this Week
Out of the five altcoins included on last week’s list, four made interesting moves. Ethereum (ETH/BTC) was the star as it defied overbought signals and rallied by as much as 14.73% last week. On the other hand, both Decred (DCR/BTC) and Bitshares (BTS/BTC) bounced while Stratis (STRAT/BTC) breached immediate support to the delight of bargain hunters.
This week, we continue to look at altcoins that are ripe for a rally. Here are the five altcoins to watch this week.
Ripple’s performance last week was unforgettable. The market had an opportunity to break out of the rising wedge on the daily chart. However, it generated a large red weekly candle that drove the price down to the diagonal support. The next 24 hours are crucial for the market.
Daily chart of XRP/BTC
The good news for the bulls is that Ripple is oversold on both the 4-hour and 1-hour charts. In addition, the volume is still thin indicating consolidation rather than a bearish breakdown. These signals tell us that Ripple is due for a rally. If it does, it might finally take out the diagonal resistance and break out of the wedge.
On the other hand, failure to bounce here might ignite panic selling and send the market down to the 100 moving average on the daily chart.
Stellar Lumens (XLM/BTC)
Stellar Lumens has spent last week trading near support of 0.0000295. The market’s ability to stay above this level is bullish as it shows accumulation. More importantly, XLM/BTC appears to be forming a durable bottom with a double bottom pattern on the daily chart.
Daily chart of XLM/BTC
With this setup, we can expect the market to rally to immediate resistance of 0.00003303. Take that out and the next resistance is 0.00003835.
On the off chance that Stellar Lumens breaches support of 0.0000295, the market will likely turn extremely bearish.
On our December 31, 2018 trade recommendation, we spotted the formation of an inverse head and shoulders pattern on ChainLink. We expected a breakout and a rally to between 0.00011 and 0.00012. These calls played out beautifully as the market rallied to our target a few days after our recommendation.
Currently, ChainLink is pulling back. This gives those who missed the chance to enter at a lower price. You can set bids between 0.000085 and 0.000090.
ChainLink’s 1-hour chart
With the 50 MA and 100 MA acting as resistance on the hourly, the market can rely on the 200 MA that is likely to act as support.
Just like Stellar Lumens, SONM appears to be carving a tradeable bottom. It has spent most of December in 2018 range trading between 0.00000515 and 0.00000606. For bargain hunters and bottom pickers, these are good levels to accumulate positions.
Daily chart of SNM/BTC
A quick look at the daily chart shows that SONM appears to be creating an inverse head and shoulders pattern that may reverse its trend. The key level to break out is 0.00000734. Take that out and the market may rally to as high as 0.00000938 in the near-term.
A breach of 0.00000515 support is extremely bearish. Have tight stop losses if you plan on entering the market.
KyberNetwork is in the same boat as Stellar Lumens and SONM. The market seems to be bottoming out at support of 0.0000356. In the process, it looks to be creating an inverse head and shoulders pattern.
12-hour chart of KNC/BTC
If our read is correct, we can expect KyberNetwork to take out range midpoint of 0.00004291 and rally to 0.000005038 soon. Otherwise, it will revisit support of 0.0000356.
All five altcoins included on this week’s list are trading near key support levels. We think these markets are in an accumulation phase, which suggests possible rallies in the coming days.
Featured image courtesy of Shutterstock.