The author of the popular GAP capital blog on the TradingView platform, spoke about several promising altcoins and the corresponding trading strategies
Bitcoin (BTC)
Bitcoin (BTC) has grown by almost 50% over the past two weeks, along with this, the dominance of the flagship cryptocurrency has increased relative to the entire crypto market, reaching 47.9%.
In the current market conditions, several altcoins may show growth, let’s consider the most promising ones.
Let’s start the analysis by analyzing the dominance of bitcoin.
The Relative Strength Index on the weekly BTC dominance chart shows a huge hidden divergence, which is a strong signal for an imminent reversal.
The potential reversal of the dominance of the main cryptocurrency tells us that the so-called “alt season” is expected soon.
Altcoin season, Altseason is a slang term for cryptocurrency traders, meaning a period of active one-time growth of alternative cryptocurrencies. It is believed that the “altcoin season” takes place in four phases: the rise of Bitcoin, the rise of Ethereum, the rise of large-cap cryptocurrencies and the massive growth of the rest of the crypto market, including low-liquid assets without fundamental value, accompanied by a massive hype from retail traders.
The beginning of the alt season is likely to take place at the moment when BTC reaches a significant resistance zone and starts moving sideways.
Lido DAO (LDO)
The list of the most promising altcoins was headed by LDO. The token is an Ethereum retail staking solution built to address liquidity issues with support from several leading staking services.
In addition, a major update to the staking platform is coming up, which could generate some positive news. In the chart below, a potential scenario with the growth of the LDO token:
At the moment, the asset is moving in a downward direction, but if we get a reaction from the indicated support zone ($1.95 – $2.3) and break the “Bearish Engulfing” candle formation (big shadow in the price range of $2.75 – $3.05) growth is expected.
If the support zone is broken down, the setup will lose its relevance at the price level of $2.
The Graph (GRT)
GRT is an indexing protocol for querying data for networks like Ethereum and IPFS that powers many applications in both decentralized finance (DeFi) and the wider Web3 ecosystem. In addition, the token fits into the so-called narrative around artificial intelligence.
On the weekly timeframe, the growth of the asset is confirmed by growing horizontal volumes, while vertical volumes indicate all-time highs in this price range:
After an imbalance is filled (a situation when a price gap has formed as a result of an excess of buy or sell orders) on the daily timeframe ($0.12 – $0.13) and a breakdown of the key resistance level (marked rectangle $1.7 – $1.9), an increase is expected:
The broken resistance zone will become a key support from which a reaction is expected. The growth scenario will lose relevance if the price fails to overcome the key resistance.
SingularityNET (AGIX)
AGIX is a blockchain-based platform that allows you to “create, share and monetize” AI services through its globally accessible marketplace. Continuing the AI narrative, this moment may show growth following GRT:
When the historical low ($0.285) is updated, the growth scenario will become unlikely.
Floki CEO Coin
Floki is a “memcoin” inspired by Elon Musk’s tweets, which has already risen by several hundred percent:
An asset from the “high risk” category was in the accumulation phase for a long time, after which an impulse breakdown occurred. If the asset returns to the accumulation range and absorbs the momentum from $0.00001, you should sell or hope for Musk.
Litecoin (LTC)
LTC – the old and beloved Litecoin can also show good growth:
The upside potential is 50%, the scenario will lose its relevance if it goes below $76.
Summary: the altcoins listed above are not recommended for trading with leverage, so the risk in transactions should be regulated by the volume to buy (no more than 1-2% of the trading account for each transaction).
