Crypto Update: 5 Altcoins to Watch This Week
All of the five altcoins included on last week’s list moved according to expectations. Ripple (XRP/BTC) and MIOTA (IOTA/BTC) bounced as forecasted. In addition, both NANO (NANO/BTC) and PowerLedger (POWR/BTC) got their opportunities to flip key resistance levels into support. Lastly, while ChainLink is yet to trade sideways, it bounced hard close to our initial support.
This week, our theme is different, as Bitcoin is showing signs of bullishness. We focus more on altcoins that have retraced, but can jumpstart their bullish tone in the next few days. Here are the five altcoins to watch this week.
Litecoin has one of the more bullish charts among the large cap names. Although it is still in range accumulation, its price action over the last few days makes us think that it is ready to trend higher.
Daily chart of LTC/BTC
A quick look at the daily chart shows that Litecoin has flipped 0.0085 resistance into support. After doing so, the market rallied and almost touched the range high of 0.01. Although Litecoin pulled back, we believe that its next move is to flip resistance of 0.009254 into support. This bullish price movement plus the golden cross between the 50-day moving average and the 200-day moving average should be enough for Litecoin to breach 0.01.
If Litecoin moves as expected, the initial target is 0.014.
EOS looks like a market that does not want to revisit its 2018 lows. The market is trying hard to take out resistance of 0.00073. Since December 18, 2018, EOS has had seven unsuccessful attempts. Many participants would think that 0.00073 resistance is now stronger than ever as it survived multiple barrages. In reality, however, each attempt has weakened bear control.
Daily chart of EOS/BTC
It appears that bears are dumping as much as they can when the price hits 0.00073. As a result, they don’t have enough ammunition to send the market down to the range low of 0.005. This enables bulls to regroup at 0.00063 to launch another attempt. The decreasing volume with each attempt to take out the resistance supports this view.
If our read is correct, the next move to breach 0.00073 will likely be a success. Should bulls finally break out of the range, the initial target is 0.000926.
Another market that looks ready to break out of range is Cardano (ADA/BTC). The market’s ability to stay above our range midpoint of 0.00001094 for over a week has caught our attention. This may be a sign that Cardano is mustering the strength needed to take out 0.0000134.
Daily chart of ADA/BTC
The daily chart shows that a possible inverse head and shoulders pattern is in play. Should the market bounce from 0.00001094, participants will likely assume that a bullish higher low and the right shoulder is in place. This might ignite a rally that can take out 0.0000134 and send Cardano to our initial target of 0.000019.
HyperCash is another market that’s resisting the lure of its range low of 0.000175. This view comes after the market appears to have flipped 0.00025 resistance into support.
Daily chart of HC/BTC
If HyperCash truly wants to move higher, it must reclaim 0.00029 and flip it back to support. Otherwise, it is at risk of going down to 0.000175.
A move above 0.00029 will likely send HC/BTC to our initial target of 0.000353.
MANA/BTC is our bottom-picking entry for the week. After breaking below 0.00001 on January 31, 2019 and retesting it on February 2, it is very likely that Decentraland will land on around the range low of 0.00000895.
3-day chart of MANA/BTC
A look at the three-day chart shows that Decentraland has been range trading between 0.00000895 and 0.00001488 for most of 2018. Any price action above or below the range can be considered deviation. With this view, it is likely that Decentraland will once again bounce off of 0.00000895 and may reach our initial target of 0.00001192.
As Bitcoin and the crypto market, in general, shows signs of slight bullishness, we shift our focus from bottom-picking to breakout trading. Altcoins such as Litecoin, EOS, Cardano, and HyperCash might break out of range this week. On the other hand, Decentraland will likely continue to trade its range. It’ll be interesting to see how this week unfolds.