Crypto Update: 5 Altcoins to Watch This Week
Most altcoins have been relatively stable last week. In fact, some even pumped, including Waves (WAVES/BTC), Mithril (MITH/BTC), and Golem (GNT/BTC). This short-term bullishness can be largely attributed to Bitcoin’s (BTC/USD) positive price action. As BTC/USD trades above $4,000, altcoins that have lost so much in this bear market are finally getting some room to breathe.
We mention this correlation because altcoins on this list may have great setups but the likelihood of breaking down will increase if Bitcoin dumps this week. On the other hand, if BTC/USD holds steady, these coins might pump big time.
Here are the 5 altcoins to watch this week.
Dash may be down by over 72% from the 2018 high of 0.0818. However, it appears to be close to the point where the risk to reward ratio is highly favorable. Currently, the market is still pulling back after nearly touching range resistance of 0.0333 in September 2018. If Dash manages to hold on to support of 0.021, we can expect that a short-term bottom is in place.
DASH/BTC weekly chart
0.021 used to be a key resistance. When the market took it out in February 2017, the breakout triggered the parabolic run that saw Dash ascend to as high as 0.1241568 in March 2017. If bulls hold, we’ll have a double bottom pattern that might trigger a rally to 0.0333. Breach that level and Dash can target 0.0422 next.
NANO appears to be in the same boat as DASH. It is currently retracing after hitting range resistance of 0.00055. It is working hard to generate a higher low at the weekly support of 0.0002505. If bulls defend this level, 0.00055 is the target to look for.
NANO/BTC Daily Chart
On the other hand, should 0.0002505 be breached, then the market might revisit the range low of 0.000181. If this level holds, NANO would form a double bottom pattern. This bullish structure might ignite a rally to the top end of the range of 0.00055.
Just like Dash and NANO, ZRX may also be looking at a potential double bottom pattern. The market recently bounced off the weekly support of 0.000093 but the rally was met with heavy selling. If bulls preserve this support, then 0.000118 and 0.000134 are reasonable targets.
ZRX/BTC Daily Chart
However, if 0.000093 gets taken out, we can expect the market to drop to 0.0000786. A move down to 0.0000786 will likely attract bottom pickers and bargain hunters. They would help form the double bottom pattern that can catapult the market to the monthly resistance of 0.000118. A breach of that level will make it easy for bulls to climb to 0.000134.
Decred bulls are struggling to take back the key monthly support level of 0.00501. If they do, we can expect the market to rally to weekly resistance of 0.00635. However, if the market stays below this level for the next couple of days, then 0.00501 is likely to turn to a firm resistance. This might ignite panic selling and the price may drop further to support of 0.00375.
Weekly chart of DCR/BTC
The good news is 0.00375 is Decred’s parabolic support. A revisit to this level will likely attract bottom fishers and bargain hunters. The market has a very favorable risk to reward ratio at that price point.
If you ignore the July 3, 2018 rally, you will easily see that Decentraland is an easy range play. Support is 0.00000991, resistance is 0.00001905, and the midpoint is 0.00001450.
Weekly chart of MANA/BTC
Today, Decentraland ripped a large green candle. It is threatening to take out 0.00001905 in the next few days. If it does, the sky’s the limit for the market. There’s no solid resistance above that level.
Altcoins such as Dash, NANO, 0x, Decred, and Decentraland may have awesome setups. However, their fate is still tied to Bitcoin. If BTC/USD holds steady this week, these alts may do something special.
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3.7 stars on average, based on 279 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.