Crypto Update: 5 Altcoins to Watch This Week
Five out of the five altcoins included on last week’s list moved according to expectations. Litecoin (LTC/BTC) led the herd as it breached resistance of 0.01 and gave the entire crypto market a much needed boost. It was followed by EOS (EOS/BTC) as it took out resistance of 0.00073, while Hypercash (HC/BTC) managed to rally to its range high. Lastly, both Decentraland (MANA/BTC) and Cardano (ADA/BTC) kept prices above key support levels.
This week, we focus our attention on altcoins that have either breached their resistance or are showing buy signals while trading close to key support areas. Here are the five altcoins to watch this week.
Litecoin is part of our list for two consecutive weeks because of its strong bullish price action recently. On February 8, 2019, the price not only took out resistance of 0.01, but it also printed volume that’s over 330% of its daily average. The last time Litecoin generated this volume was back in February 2018 when the market was trading around its all-time high of 0.025.
Daily chart of LTC/BTC
If you missed last week’s big move, don’t fret. Markets always pull back. Litecoin is likely on the verge of a pull back as it is currently overbought on the daily chart. Also, we’re seeing a bearish divergence on the hourly chart. Thus, we can expect the market to dip soon.
Our targets to bottom pick the market are 0.010775 and luck is on our side, 0.01012.
Ripple has been independent of Bitcoin’s price movement for a while now. This is why we’re not surprised to see it continue correcting while Bitcoin rallied on February 8. Nevertheless, we’re starting to see buy signals as Ripple trades close to support of 0.000084.
A look at the 4-hour chart shows that Ripple has moved below 0.000084. However, this might be a bear trap. We can see the RSI printing a large bullish divergence suggesting a trend reversal is on the horizon.
If our read is correct, the market should recover the support of 0.000084 soon. A recovery of the support will enable Ripple to form a double bottom pattern. This is bullish and it will likely send the market to our initial target of 0.0000952.
The current market structure of Dash is a more complete pattern of what Ripple is trying to accomplish. Like Ripple, it also printed a bullish divergence while trading below a key support area of 0.02. Now that is has recovered the support, it is starting to look strong.
Daily chart of DASH/BTC
The daily chart shows that DASH is creating a double bottom pattern on the daily chart, which is similar to what Ripple may be forming soon. As long as 0.02 holds, a rally to our range high of 0.0323 is a strong possibility.
Monero is not getting the attention it deserves. The market struggled mightily to hold support of 0.012 for about a month and a half. During this period, bears attempted to take out the support four times. They also shorted each bounce, which led to three lower highs. As a result, Monero was in danger of breaking down from a descending triangle pattern and continuing its downtrend.
Daily chart of XMR/BTC
However, bulls refused to give up 0.012. This ignited a rally that saw Monero breach the 0.0127 resistance and break out of the triangle. A successful retest of the 0.0127 will likely send the market to our initial target of 0.014.
After six long months of accumulation, Ark appears ready to trend higher. It took out our previous range high of 0.000128 on February 10, 2019. Like Litecoin, it looks like the market is not yet done.
Daily chart of ARK/BTC
With the breakout, 0.000128 is now our range support. As you can see, our new range midpoint of 0.000156 is acting as resistance.
With Ark respecting our range midpoint and trading close to overbought levels, we can expect it to retest support of 0.000128. Long targets are 0.000156 and 0.0001912.
Last week’s strong bullish price action appears to have given life to many altcoins once again. Ahead of the curve is Litecoin. Ark is not far behind in terms of bullish momentum. On the other hand, Ripple, Dash, and Monero are flashing buy signals while trading close to key support levels. Provided we don’t get a major black swan event, we have an exciting week ahead of us.
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.