Helium, Zcash, and SUI Prices Defy Market Correction With Bullish Engulfing Candlesticks: Is a Rally Looming?
Analyzing Bullish Engulfing Candlesticks for SUI, ZEC & HNT | Credit: Derek Fenech
Key Takeaways
- Helium (HNT), Zcash (ZEC), and SUI posted bullish engulfing candlesticks over the past week.
- These projects defied a broader crypto market correction that persisted for over two weeks.
- Will their upward momentum continue this week, and if so, which one will lead the charge?
The crypto market has been struggling to regain footing since hitting its lowest point for the year on Aug. 5.
Despite the overall downturn, a few projects like Helium (HNT), Zcash (ZEC), and SUI have managed to stand out. These tokens haven’t just bounced back; they’ve erased their losses and closed with strong bullish momentum.
As the market tries to recover, could these three tokens be at the forefront of a potential rally?
Helium Clears Multiple Resistances
HNT’s weekly chart projects a strong bullish outlook. The price action indicates a breakout from a 147-day descending resistance trend line, followed by a successful reclaim of the $5.30 horizontal resistance level. This move was reinforced by a bullish engulfing candlestick, which saw a substantial 43% gain.
Technical indicators further support this bullish outlook. HNT’s RSI has crossed above the 50 mark, signaling strength, while the MACD has made a bullish crossover and is moving above 0, further validating the breakout.
Looking ahead, if HNT continues its upward trajectory, the first significant resistance will be at the 0.618 Fibonacci retracement level of $7.93, followed by the main horizontal resistance at $9.50.
On the downside, a weekly close below $5.20 could jeopardize the current bullish momentum, although this scenario appears unlikely at this stage.
Overall, HNT seems well-positioned to maintain its bullish momentum in the coming week.
SUI Price Breaks Out From Channel
SUI’s weekly chart shows that the asset broke out from a descending parallel channel during last week’s bullish engulfing candle. Since these channels often contain corrective movement, the breakout signals the correction is over.
However, the RSI and MACD do not confirm this since the former is below 50 and the latter is negative. Also, the MACD has not even made a bullish cross yet. So, while the price action is bullish, indicators fail to confirm this.
The closest Fibonacci and horizontal resistance area is relatively close at $1.12. So, SUI’s potential for future increases is capped since the area is likely to cause at least a temporary rejection.
Zcash Reaches New Yearly High
Zcash’s price action is the most interesting among the three altcoins. Last week, ZEC reached a new yearly high, breaking through key resistance levels with minimal overhead resistance in sight.
The bullish engulfing candlestick validated a long-standing 679-day resistance trend line and triggered a breakout from the $34 resistance area, which had held firm since May 2023.
With the next resistance level at $53 and no significant barriers between the current price and this target, ZEC is positioned for potential rapid gains.
Technical indicators further support this bullish outlook. The weekly RSI and MACD are both on the rise and comfortably positioned above 50 and 0, respectively. Additionally, significant bullish divergences (green) that preceded the price surge suggest that this momentum has strong underlying support.
Given these factors, ZEC appears to have the most substantial potential for quick appreciation among the three altcoins.
