Bitcoin has been showing signs of weakness as of late. This is good news for many crypto tokens that have been badly beaten over the last few months as the dominant cryptocurrency flexed its muscles.
At the very least, the bitcoin correction will likely give smaller crypto assets the space to bounce. For some coins, this breather might be enough to ignite a sustained rally.
These three cryptocurrencies are dirt-cheap, making them excellent candidates for a near-term bounce.
VeChain is printing strong reversal signals and it’s worth keeping an eye on. The cryptocurrency is trading at the apex of a large falling wedge on the daily chart.
More importantly, it appears ready to take out the diagonal resistance of the wedge.
The good news is that technical indicators are favoring the bulls. A look at the daily RSI shows a long bullish divergence. This tells us that bulls have been gathering momentum for some time. Once unleashed, we expect VeChain to ignite a strong rally.
Another notable development was the capitulation volume on June 25. Looking at VeChain’s history on Binance, the volume on that day was the largest printed by the cryptocurrency. This was a strong indicator that tells us that the bottom is likely in.
To validate our bias, VeChain must reclaim 0.0000006 BTC and convert it into a solid support. When that happens, bulls will easily target 0.000001 BTC.
Verge’s long crypto winter may be finally coming to its conclusion. We have this view because the market has completed its cycle. From the all-time high of 0.00002 BTC posted on December 23, 2017, the crypto has plummeted to 0.00000053 BTC on July 16. That’s a massive drop of 97.35 percent in 19 months.
Essentially, Verge has given up all of its gains from the 2017 bull run. It should bottom out here and now, or else it might cease to exist.
Fortunately, technical indicators tell us that Verge is likely to survive and start a new market cycle. So far, bulls are respecting our line in the sand of 0.0000005 BTC. On top of that, we can see a long bullish divergence on the daily RSI. These are signals of a market entering accumulation.
If you want to play the bounce, buy as close to 0.0000005 BTC as possible. Targets are 0.000001 BTC and 0.0000015 BTC.
Basic Attention Token is a solid bottom-picking candidate. Apart from the ascent to 0.000094 BTC on April 21, it has been trading in a well-defined range. Since December 2017, Basic Attention Token has been moving between range support of 0.000023 BTC and range resistance of 0.000056 BTC with a midpoint at 0.0000395 BTC.
This should be a fairly easy trade considering that the cryptocurrency is respecting our range support of 0.000023 BTC. On top of that, it is flashing bullish divergence and oversold signals.
If you want to go long in this market, buy close to 0.000023 BTC. Our targets are 0.0000395 BTC and 0.000056 BTC.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.
Last modified: January 10, 2020 3:29 PM