Crypto Update: Bullish Breakouts for Verge, Pundi X, and Stratis
This is part five of the bullish breakout series. If we got to this point, that means we have at least 15 cryptocurrencies that have managed to escape bear territory. Experts and major media outlets have yet to announce a new crypto bull run. However, those in the know can say that the worst is most likely behind us. They might be right because every day, there’s a new altcoin joining the bullish bandwagon.
In this article, we reveal bullish breakouts for Verge, Pundi X, and Stratis.
The Verge/Bitcoin (XVG/BTC) pair went as low as 0.00000165 on August 14, 2018. At that price point, the market was down by over 90% from the 2018 high of 0.0000171. Mid-August, it looked as if Verge/Bitcoin had more downside potential as it breached parabolic support of 0.000002.
However, price started to stabilized largely due to extreme oversold conditions. With bears suffering from extreme exhaustion, bottom pickers and bargain hunters swooped in and brought the market back up to 0.000002. More importantly, the surge in demand catalyzed the breakout from the large falling wedge on the daily chart.
Daily chart of XVG/BTC
The breakout looks valid as the pair was pushed by volume that’s over 400% of its daily average. As a result, we can see the RSI breakout from its resistance, which has kept the market bearish since April 2018. With these developments, we can say that XVG/BTC is out of bear county.
Pundi X/Bitcoin Analysis
Basing on the Binance chart, it appears that Pundi X/Bitcoin (NPXS/BTC) recorded a new low at 0.00000019 on August 14, 2018. The altcoin is relatively new so when it breached immediate support of 0.00000025, investors became jittery. There was no known support below 0.00000025.
If the last line of defense cracked, then you can rely on technical indicators such as the RSI to look for clues. NPXS/BTC revealed a bullish divergence on August 14 just as it printed a record low. This was enough for bottom pickers to enter the buying scene.
Daily chart of NPXS/BTC
The revitalized bullish momentum kept the market above 0.0000002 for the rest of August. With a bottom in place, the market attracted more bottom pickers and bargain hunters. Demand skyrocketed.
On September 4, the market printed volume that’s over 240% of its daily average. The increase in demand enabled NPXS/BTC to breach resistance of 0.00000028 and eradicate the inverse head and shoulders pattern on the daily chart.
It’s correcting a bit today, but it seems that Pundi X/Bitcoin is another altcoin in bull territory.
The Stratis/Bitcoin pair (STRAT/BTC) came off lows of 0.0001833 on August 14, 2018. At this price, the market was down by almost 90% from the 2018 high of 0.001681. In addition, the pair was far from its last known support of 0.0004. STRAT/BTC was at risk of spiralling out of control and revisiting lows of 0.0001.
Fortunately for bottom pickers, bears had no more ammunition at that point. STRAT/BTC was in extreme oversold territory on the daily RSI. In addition, it appeared to be respecting the RSI line in sand of 20. These conditions enabled bulls to establish a bottom.
Daily chart of STRAT/BTC
With a bottom in place, STRAT/BTC generated the momentum to break out of a small ascending triangle on the daily chart. More importantly, the pair also breached RSI resistance of 52. This resistance was responsible for keeping the market bearish since May.
With these breakouts, STRAT/BTC enjoys a bullish outlook.
2018 has not been an easy year for many altcoins but things are looking up. It seems that there’s a new altcoin joining the bull bandwagon every day. For this edition, we added Verge, Pundi X, and Stratis.
Featured image courtesy of Shutterstock.