Crypto Update: Laggard Altcoins Play Catch Up
In September 2018, many altcoins started to break out of their bearish patterns to signal the beginning of the end of the altcoin apocalypse. Pairs such as Ripple/Bitcoin (XRP/BTC), Doge/Bitcoin (DOGE/BTC), and Monero/Bitcoin (XMR/BTC) led the way. These markets doubled or tripled their value from the bottom in a matter of days. Eventually, other altcoin pairs followed suit. Needless to say, September was one of the most eventful months in crypto this year.
Though many altcoins showed bullish signals last month, some continued to languish in bear territories. These pairs appeared to unaffected by the rising tide as bears remained in absolute control. That has been the case up until recently when they showed signs of life.
In this article, we reveal how laggard altcoins such as FunFair/Bitcoin (FUN/BTC) and Decentraland/Bitcoin (MANA/BTC) are playing catch up.
The FunFair/Bitcoin pair is following the script established by market leaders such as XRP/BTC and LSK/BTC.
FUN/BTC is down significantly year-to-date, around 83% from the 2018 high of 0.00001385. It started to show signs of bullishness as soon as it hovered above a key support area. This attracted bottom pickers and bargain hunters, which generated a lot of bullish momentum. As a result, the market is poised to breakout from a large falling wedge on the daily chart as it trades near the apex of the pattern.
If you’ve been following our crypto updates, this setup should sound very familiar.
Daily chart of FUN/BTC
The exact same conditions have enabled many altcoin pairs like XRP/BTC and LSK/BTC to reverse their trend last month. It seems like the rising tide is beginning to lift laggard boats.
MANA/BTC is also getting lifted by the rising tide. However, it appears to be creating its own waves.
The Decentraland/Bitcoin pair dropped to as low as 0.00000814 on September 12, 2018. At this point, the pair lost over 80% of its value from the 2018 high of 0.00004222. Such heavy losses would have shattered investor confidence. Nevertheless, many people create their fortunes by buying the bottom. That’s the point where risks are minimal but rewards are substantial.
It appears that MANA/BTC is giving us this rare opportunity.
4-hour chart of MANA/BTC
The pair is currently in the midst of a bullish reversal. However, you won’t see that unless you switch to the 4-hour chart. You will quickly notice that it is about to breach resistance of 0.000012.
A move above the resistance would trigger the breakout from the inverse head and shoulders pattern. In terms of trend reversal patterns, this is one of the most reliable and convincing bullish reversal structures.
It looks like we’re going to add MANA/BTC to the list of bullish altcoin pairs soon.
Laggard altcoins such as FUN/BTC and MANA/BTC may still be under bear control. But the charts tell us that these markets will likely be reversing real soon. These altcoins are about to breakout from bullish reversal patterns and catch up to leaders such Ripple/Bitcoin and Monero/Bitcoin.
Featured image courtesy of Shutterstock.