Yesterday’s wild price action – where bitcoin saw its value jump above $9,000 only to quickly drop to $8,000 – has the market wondering if the bullish trend will continue or if it’s time for a correction. Even if it looks like it’s time to stay off the market, technical analysis of some of the most prominent altcoins may indicate otherwise.
Ethereum Classic
Since February 6, ethereum classic has experienced a steady increase in its market valuation to reach a high of $8.9 on May 30, representing a 141 percent gain from a low of $3.7.
On the 3-day chart, a pivot-top candlestick has formed, indicating that a correction may be coming. If ETC pulls back, it could try to test the $7.2 level, the support trendline or even the major support given by the $5.6 price point.
However, if the $8 support level where ETC is now trading can hold its price, it may continue to rise and try to test the $10 resistance level.
A candlestick can also be seen on the 1-day chart predicting a pullback that could take ETC to $7.2. The bearish pattern will be invalidated if this cryptocurrency can trade above the recent high of $8.9.
A bearish engulfing candlestick formed on the 12-hour chart. At the moment, ethereum classic is trading above the 7 MA, which is a bullish sign, but if the bearish formation is validated, this cryptocurrency may drop to test the 30 or 50 MA. It would be wiser to wait for a move above the previous high before entering a bullish trade.
Ontology
For more than two months, Ontology consolidates between $1.6 and $1.0. During this period, ONT could not make a strong move out of this series.
Currently, this cryptocurrency is trading around the $1.6 resistance level indicating that it may drop back to the $1.0 support. However, if volume starts to pick up, ONT could experience a bullish impulse that takes it to $2.8, which is where the next point of resistance sits.
A double top formation appears to be developing on the 1-day chart. This is a bearish pattern that predicts an upcoming pullback. This confirms what can be seen on the 3-day chart, in that ONT could be on the verge of falling back to $1.0 as it has done every time it reaches $1.6 for the past two months.
A move higher can only be expected if ontology can trade above the recent high of $1.72.
The TD Sequential Indicator gave a sell signal with a green nine on the 12-hour chart. A bearish move towards the $1.28 support level seen on this time frame can be expected, but if the selling volume is high enough, ONT could continue to drop to $1.15 or $1.0.
OmiseGo
Based on the 3-day chart, the market valuation of OmiseGo printed between the 7 and 100 moving average. A break above the 100 MA could take this cryptocurrency up to the 200 MA, which currently sits around $7.
Nevertheless, if OMG trades below the 7 MA, it could drop to the 50 MA at around $1.7.
A trading range between $2.5 and $1.5 can be drawn on the 1-day chart with the $1.85 price point acting as the middle support zone. Now that OmiseGo is reaching the top of the range where it has been trading for over a month, it can be expected to drop to test the $1.85 support level.
A break below support could take OMG to the bottom of the trading range, while a break above $2.5 could take it to $3.
An ascending parallel channel is visible on the 12-hour chart. Right now, OmiseGo sits in the middle of the channel and indicates three possible outcomes. OMG may continue to consolidate around this price point, it may fall to the bottom of the channel or it may rise to the top of the channel.
Augur
After hitting a low of $5.4 on December 15, 2018, augur rallied more than 370 percent to reach an annual high of $25.7 on May 16.
Now REP has returned to $19 and is trading below the 7-three-day moving average, which is a bearish sign. So far, the 30 MA seems to be holding its price from a further decline, but if it is no longer able to hold guard, it could drop to the 50 MA, which stands at $17.
On the 1-day chart, it can be seen that augur has traded above the 50-day moving average since early March, but moved below it on May 21. At the moment, it looks like this cryptocurrency could be heading towards the 100-day MA or even the 200-day MA, which stands at $18 and $14, respectively.
If REP can trade above the 50-day MA again, it could continue its bullish trend taking it to new annual highs.
The Bollinger Bands appear to be pressing on the 12-hour chart, indicating a period of low volatility before a breakout is triggered. The levels to watch for are whether augur will move up past $21.4 resistance or drop below $18.6 support. A break above resistance could take this cryptocurrency to new yearly highs, while a move below support could extend the correction currently underway.
0x
0x has had clear price action this year. It seems to trade within a price range for a while before moving to another price range. From late January to late March, it traded between $0.27 and $0.23 after a breakout that has now seen it trade between $0.36 and $0.27 since the beginning of April.
A move above this trading range could take ZRX to $0.45, where it could consolidate before a move higher, but a break below could take it back to $0.23.
A head and shoulders formation appears to be developing on ZRX’s 1-day chart. This is a bullish pattern that predicts a 40 percent rise after breaking the neckline.
A move above $0.36 would validate this pattern, while a drop below $0.27, where the right shoulder sits, would invalidate it.
Overall sentiment
The market is going through a corrective period after the recent bullish impulse. While it looks like there is potential for a further decline, this pullback could be part of a healthy continuation of the bullish trend. The various support points will determine whether the market will make new annual highs or whether it is headed for new lows.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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