17h ago
The altcoin market is looking weak...
Let's hunt for setups with TRX, PUMP, USELESS, ZEC, SNX and TAO 👇
1/ TRX
TRX has been doing an exponential move for the past 2 years (an exponential move is a powerful price acceleration where gains increase at a faster and faster rate, often driven by strong momentum).
In February 2023, TRX found local lows around the 200-Day SMA+EMA.
We currently have a similar setup with TRX forming a daily bullish divergence on top of the 200-Day SMA+EMA.
First target is $0.33 and then $0.37. A break below $0.30 would invalidate the scenario.
2/ PUMP
PUMP is forming a daily bullish divergence on the orderblock at $0.0033- $0.0034, and is now sitting just above the $0.0038 support.
If PUMP succeeds in holding the support, we could target the $0.0049 area. A break above would target the top of the range at $0.0072.
A close below the orderblock would invalidate this scenario.
3/ USELESS
After a clean falling wedge breakout, USELESS went directly for its all time high. Even the 10/10 crash couldn’t stop USELESS to retest the top of the range at $0.42.
As expected in the previous analysis, a retest of the Daily Orderblock at $0.27 was a good opportunity. As long as this Daily Orderblock holds, a Cup and Handle pattern could continue.
A break above ATH at $0.42, and we would target $0.69 as the target of this Cup & Handle pattern.
What is a Cup & Handle pattern?
A Cup and Handle pattern is a bullish chart formation that signals a potential continuation of an uptrend.
It starts with a rounded cup shape (with 3 stages: decline, stabilization, and recovery back to previous highs). It is then followed by a dip called the handle, which represents short-term consolidation at the highs before the breakout.
A break above the handle usually signals strong bullish momentum.
5/ SNX
SNX had one of the strongest bounces after the 10/10 crash and is back in its accumulation range $1.44 - $3.51, while also breaking this 1.5 year descending trendline.
As we said last time, the immediate resistance and Key Level was indeed around $2.5, as this is where mid-range and 200-Week EMA+SMA meet.
SNX is currently retesting the bottom of the range around $1.44. If SNX succeeds in holding it, the next stop should be at $2.5 and then $3.5. We don’t want to lose the range or this could invalidate this scenario.
7/ Our take
Not all altcoins are equal during those conditions, as some altcoins still have bullish momentum following the 10/10 crash, while most altcoins currently look very weak.
This is why we are trying to find outliners which hold their bullish momentum. Those aren’t picks but an analysis of the alts with the most momentum.
BTC is currently battling to hold the bottom of the range around $108k- $110k. If BTC succeeds in holding this area, we can expect altcoins to bounce hard. Any retest of low $100k for BTC would give good buying opportunities in altcoin.
There are still plenty of opportunities in this market, but we need to sort through all these altcoins to find the best setups.
Q4 is shaping up to be bullish.
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