The altcoins market is in recovery mode and after more than two months of persistent sells, their momentum is fading. Though they still lack solid confirmation, price floors are morale boosting for coins as EOS, Tron, IOTA and even Litecoin which were heading lower. Next week’s price action would influence the short term price trajectory of most altcoins under review.
Let’s have a look at these charts:
EOS Technical Analysis
First, before taking a trading decision, note that EOS price action is in a down trend. Going forward we shall maintain this stance regardless of yesterday’s completion of a three bar reversal pattern, the Morning Star forming at around our first support line at $4.
Overly, we shall retain yesterday’s EOS trade plan and the best way EOS buyers can confirm recent resurgence is if there are gains above $6, Aug 8 highs and our intermittent resistance.
Once prices print above that level then we suggest short term, low size longs with immediate targets at $7 and later $9, the upper limit of the previous 30 day consolidation line. In the mean time though, aggressive can take longs with stops at Aug 4 lows at $4.
Litecoin (LTC) Technical Analysis
Yesterday’s trade set up points to a coin that is finding supports at our first bear target and main support line at $50.
From the chart, LTC is up six percent and with that abnormal surge, we have a clear three bar bull reversal pattern with buyers aiming to clear and close above our first resistance level at $65.
Though there are open positions for taking longs as the chart shows thanks to yesterday’s bullish engulfing candlestick, conservatives can always be patient and wait for our trade conditions to be met.
In case of buys at spot price, stops should be at yesterday’s lows at $53 with first targets at $65 and $70.
Stellar Lumens (XLM) Technical Analysis
Like EOS and most coins, Stellar Lumens prices are trying to break off from that eight day consolidation along 22 cents.
If anything, yesterday’s gains are a glimpse of a shift of momentum backed mostly by positive fundamentals around XLM. As such, odds are our trading conditions would be met today or in the next few days as long as buyers step up their momentum.
As highlighted in previous Stellar Lumens analysis, all we need for XLM longs to be valid are strong up thrusts and close above 26 cents and later 30 cents before we begin loading up longs. Before then, we shall be neutral view with a bearish leaning.
Tron (TRX) Technical Analysis
From the News
- So far, Tron is doing well adding 13 percent in the last day. There are several coin specific events that may be buoying prices including recent coin listing at BitBox and inclusion of TRX at LINE’s investment funds. Still, the announcement of the 9 million TRX by the network could be a boost. BitBox is even taking this initiative and in a first come first serve basis, the first 2000 persons to register with the exchange will receive 2000 TRXs from Tron. Additionally, those investing more than 50,000 TRXs at the exchange will earn a two percent interest through Aug 22.
In this time frame, TRX is surging and apart from gaining a massive 13 percent, yesterday’s trade plan is now void.
However, in the midst of all these, we note that sellers are still in charge and being reasonable enough, a two month’s bear trend cannot be invalidated in two days or so.
While we acknowledge that TRX might be in bottoming, taking small long positions with stops at Aug 17 lows at 1.9 cents with first targets anywhere between 2.5 cents and 3 cents is ideal.
IOTA (IOT) Technical Analysis
At current spot prices, IOTA is up 15 percent in the last day and printing clearly in the daily chart is a three bar bull reversal pattern around our first targets at 30 cents.
But while the sentiment change to bullish, traders should take a cautious stand to avoid fading the market by taking longs in a steep bear market.
For confirmation, today’s price action might shed light and perhaps influence our trade decision because any close above 55 cents or Aug 13 highs means we shall take our sell profits and initiate small size longs with stops at Aug 17 lows at 45 cents.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.