Crypto Update: 5 Altcoins to Watch This Week
On last week’s altcoins list, four out of our five picks moved within expectations. Waves (WAVES/BTC) rallied from the 61.8% Fibonacci level. On the other hand, Steem appeared to have flash crashed on January 26, 2019 but bulls were able to rescue the market and lifted it up back above the range low. Lastly, DASH (DASH/BTC) and Wanchain (WAN/BTC) still appear to be headed to our bottom-picking target. Only TRON (TRX/BTC) moved unexpectedly as it rallied before it hit our buy zone.
For this week’s edition, we stay cautious as Bitcoin is now trading below $3,500. This increases the likelihood of revisiting previous lows. Thus, we look at altcoins that are ripe for bottom-picking. Here are the five altcoins to watch this week.
Ripple appears to have started 2019 on the wrong foot. The market has been correcting ever since it went below 0.0001 on December 25, 2018. Nevertheless, it appears that a bounce is on the horizon.
XRP/BTC daily chart
Ripple seems to be finding support just below 0.0000085. The market is oversold on the daily RSI. If Ripple bounces from these levels, 0.0000926 is the target. Otherwise, a breach of this support might send the market down to the 200-day moving average.
LINK/BTC daily chart
From a long-term perspective, ChainLink is still extremely bullish. However, it appears that we have a short-term top. Therefore, we can expect the market to consolidate for some time before resuming its ascent.
We believe that the market will consolidate between 0.0001 and 0.00009 in the next few weeks. LINK/BTC will likely build a new base before it can make another move up. You can enter the market during this period.
MIOTA has been retracing ever since it touched the range high of 0.0000964 on January 2, 2019. Almost four weeks later, the market looks ready to bounce.
A quick look at the 12-hour chart shows that the market is trading around support of 0.000073. If the support holds, then this would enable MIOTA to flip 0.000073 resistance into support.
Also, the market is in oversold territory on the 12-hour RSI. The expected selling relief due to bearish exhaustion should help IOTA/BTC stay above the support and possibly rally all the way up to the range high of 0.0000964.
A breach of this support, however, will likely send the market down to the range low of 0.000062.
NANO made it to this week’s list after it broke out of a falling wedge on the daily chart. The break out tells us that NANO may be ready to resume its uptrend.
As you can see, the breakout rally faded as soon as it touched the 200 MA. This gives you chance to buy the retest of the breakout. Should bulls flip the diagonal resistance into support, NANO will likely generate the momentum to rally to the range high of 0.00045. Otherwise, the market might revisit 2018 lows of 0.000155.
PowerLedger is a rare example of how descending triangles are not always bearish. The market broke out of the triangle on January 16, 2019 when it took out resistance of 0.0000223. This sparked a rally to 0.00003509 on January 19.
While the breakout rally faded, this gives you the chance to buy on dips. As long as 0.000022 holds, POWR/BTC will likely gather the momentum to climb to the range high of 0.000035. On the other hand, failure to bounce here will send the market back inside the triangle. This is bearish and might lead to a new 52-week low.
With Bitcoin trading below $3,500, the possibility of another selloff across the crypto board becomes likely. That’s why for this week, we focused on altcoins that are ripe for bottom-picking. They are trading near key support areas, which enables you to assign a tight stop loss just in case bears decide to go on a rampage.
Featured image courtesy of Shutterstock.