Metaplex, Arcblock, and Sundog: Top Small-cap Cryptos to Monitor in September
Small Cryptos to Look Out for in September | Credit: Rob Anderson
Key Takeaways
- Metaplex (MPLX) is trading near the end of its long-term symmetrical triangle pattern.
- Sundog (SUNDOG) has increased by over 650% since its launch on Aug. 16.
- Arcblock (ABT) broke out from a descending resistance trend line in place for 76 days.
August started bearishly for the cryptocurrency market, leading to a notable downturn that culminated on Aug. 5. However, a significant rebound followed after the low, which has caused several cryptocurrencies to increase by double digits.
Small market capitalization (small-cap) cryptos have posted even higher rates of increase. Small-cap cryptos are riskier since less capital is needed to make price changes, but they can also provide higher returns.
Based on the market capitalization rankings, the low-cap cryptos chosen are lower than 150. More specifically, MPLX, SUNDOG, and ABT are ranked 194, 214, and 272, respectively.
Metaplex Could Break Out
The MPLX price has fallen since its $0.63 high in December 2023. This was the second-highest-ever price, trailing only the launch price of $0.89 in September 2022.
The decline is contained inside a symmetrical triangle. While considered a neutral pattern, the triangle usually leads to breakouts following an upward movement, as is the case for MPLX.
The wave count inside the pattern shows a nearly completed A-B-C-D-E correction. If this is the case, MPLX could decrease one final time before eventually breaking out.
If MPLX breaks out, the first target for the top of the movement is at $0.70, found by projecting the triangle’s height to its breakout level.
Arcblock Clears Long-Term Resistance
The ABT price had fallen under a descending resistance trend line since its all-time high of $4.73 on May 21. The decline was swift, leading to a 79% drop in 76 days and a low of $0.98 on Aug. 5.
Afterward, the price began an upward movement and created a higher low before breaking out on Aug. 20. This is a bullish reversal sign further enhanced by the bullish divergences in the MACD and RSI (green).
So far, ABT reached a high of $2.24 on Aug. 25 and is now returning to validate the $1.50 area as support. If successful, this could trigger an increase toward the 0.5 Fibonacci retracement resistance level at $2.87.
This is also a horizontal area that has been important for the price action since April.
Sundog Concludes Small-cap Cryptos
SUNDOG is a new cryptocurrency that only came out on Aug. 16. It increased almost immediately after its launch, leading to a new all-time high price of $0.351 on Aug. 26. This was an increase of 665% since the launch price.
The price has fallen since, but trades inside a symmetrical triangle, considered a neutral pattern.
However, as was the case for MPLX, the triangle usually leads to breakouts if it comes after an upward movement, as is the case for SUNDOG.
If a breakout happens, the 1.61 external Fibonacci retracement will create the next target at $0.465.
Conversely, a breakdown can lead to a retest of the closest support at $0.175.
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