There are several developments across most of these high cap altcoins hinting of price recovery. Of course that is dependent on price action and it shall come to pass if at all there will be a follow through of yesterday’s bullish pressure.
Besides LTC, NEM looks likely to recovery after its 95% of its initial rally was recovered by bears.
Let’s have a look at these charts:
What we are seeing now is Lumens support at the triple bottoms at around $0.30. That is midway between the 61.8% and 78.6% Fibonacci retracement level marking the initial leg up.
Even though XLM buyers might push prices up, we can treat every higher highs as a shorting opportunity.
Because of this recent strong bear move, I will wait and see what happens at around $0.40. It’s a potential reaction zone which if there is a strong surge then we can begin increasing longs positions. That will be especially so if we prices tip over and close above January 6 highs of $0.45.
Ultimately, the aim is at the middle BB but at current prices, that’s $0.20 away and it offers a pretty nice resistance in my opinion.
It’s pretty much the same scenario panning out in NEM but unlike Lumens, the depreciation has been deep and 95% of all the previous bullish gains have been reversed.
It may have been made worse by the heist but NEM platform is doing a pretty good job at tracking all the stolen coins. Remember, if all these coins are unloaded to the market at once, it could prove catastrophic for prices.
Anyway, we are leaning towards bears and unless otherwise, we need strong signs why we should not short.
There would be hints of that if yesterday’s bull candlestick is confirmed today and it could be nice if we have a close above $0.60.
That’s just above the 80% mark of the previous rally witnessed between December and January 2018.
From previous analysis, we said that EOS might find strong support at around $7.5. This was after we placed a simple Fibonacci extension between the upper and lower limits of the minor consolidation when prices broke below $12.
Well, now, there is some reaction and yesterday actually ended up being bullish. However, bears are in control and we should not get hyped over nothing.
If you decide to load up longs then it’s better to spread out your entries in lower time frames.
In my view, we can only be assured of longs the moment EOS prices close above $9.5. Before then, sellers can find shorting opportunities and $9.5 may present sellers with entries mainly because it is a key Fibonacci and retracement level.
The way price action is behaving at $114 is encouraging for buyers.
Those pin bars and hints of buyers rejecting lower prices is pretty awesome in a recovery point of view. Of course, we have laid emphasis on numerous occasions on how significant $100 or the 78.6% Fibonacci level is.
The thing is, we cannot put all our bets and go long because of this. It will be prudent of us if wait for better signal and that means a close above the 61.8% Fibonacci retracement or $170 to the upside.
Before that happens, LTC needs to weather potential sell pressure at the liquidating middle BB and of course $170 itself.
Otherwise, any surge of any form below $100 and the dice is cast for LTC. In that case, prices might crash at $50 for a 100% recovery of November-January gains.
What we are seeing in the chart is a pretty resilient NEO cutting losses and rejecting any close below $85 or the 61.8% Fibonacci level which we have been talking about.
Nice developments but if there is a real attempt for higher highs, then we must see moves above $100.
Bear in mind that we are in a strong bear trend. Of course this double bar bullish reversal pattern at support is what we want to see. However, we should not be carried over and go long immediately before prices close above $100.
All charts courtesy of Trading View