Small cap coins were hit with a wave of selling today, as the global risk-off trade crept into the segment and caused a concerted move lower. Most of the majors are also down after a very quiet week, with Bitcoin holding up well compared to the rest of the market, as its share climbed back to 43% of the total value of the crypto-segment during the recent correction.
Most of the smaller coins never broke out from their correction patterns, despite some bullish signs earlier on this week, and they might be in for further sideways action before a sustained rally can develop, especially if the broad global sell-off continues in risk assets. Yesterday we took a look at Stratis, Bitshares, Steem, Antshares, and Zcash, and today we are analyzing five more rising coins.
Waves/BTC, 1-Hour Chart Analysis
Waves has exited the declining trend a couple of days ago, but the strong bounce hit resistance at 0.0019 and the coin retraced most of the move by now, with the broad correction further pushing the price lower today. The short-term MACD is still negative and a break below 0.0016 would open up the way for a re-test of the 0.0014 level that marks the correction low. If the coin holds or bounces back above 0.0015 quickly that would be a bullish long-term sign.
DGB/BTC, 4-Hour Chart Analysis
DGB remains among the weaker coins since falling below the key support level at 0.000010. The currency trades in a range between 0.0000064 and 0.000008 compared to BTC, with strong support below that at 0.000005. Traders are still advised to wait for new positions until the short-term declining trend (currently at 0.000008) breaks. The long-term trend-line is already broken after a lengthy consolidation, and that could point to a trend-reversal soon.
GNT/BTC, 4-Hour Chart Analysis
Golem hit a marginal high in late June, but since then it entered a correction, breaking the long-term trendline and falling to the 0.00017 support. The coin broke that level today and it is headed for test of the strong zone between 0.0001325 and 0.0001450, which could provide a good entry point for long term investors.
SC/BTC, 4-Hour Chart Analysis
Siacoin is also in a declining short-term trend, as it broke below the key 0.000005 level against the BTC, after a failed break-out attempt above 0.0000075. Traders should avoid new positions until a rally above the short-term trendline that currently stands at 0.0000045. The MACD is already in oversold territory, but as long as the broad selling pressure persists, the coin might test the strong support at 0.000003.
MIOTA/BTC, 15-min Chart Analysis
IOTA is still in very early days of its broad trading history, so short-term traders should expect very volatile conditions, as the market tries to settle down after going public. We advise trading IOTA only for experienced traders for now. The coin is hitting new lows today against BTC and short-term traders should wait with new positions until at least the break of the declining trendline currently at 0.135. Long-term investors could take advantage of the current broad sell-off and add to their positions near 0.125.
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