VeChain and NEO have orchestrated impressive rallies over the last few days. TRON and Ontology are printing market structures that are bullish. Traders weigh in ...
If you bought Chinese coins when President Xi Jinping surprisingly embraced blockchain, you are very likely sitting on profits. Those profits would be magnified if you bought NEO or VeChain.
Leading the way for Chinese coins is Vechain. The cryptocurrency for supply chain management is up by a whopping 120% since Xi pivoted to blockchain. It’s followed by the “Ethereum killer” known as NEO. The crypto token is up by over 87% against the U.S. dollar.
Although these two coins have been pretty impressive, it appears that both are succumbing to profit-taking. VeChain is down by about 4% from the recet high of $0.00670390 while NEO has given up about 3% from Wednesday’s high of $13.29. The selloff puts other Chinese coins in a position to pump.
With both VeChain and NEO posting five consecutive green candles, it wouldn’t come as a surprise if these two coins pulled back. If they do, I can see the smart money funneling profits into other Chinese coins such as TRON, Qtum and Ontology.
Take for example TRON (TRX/USD). The cryptocurrency is flashing multiple bullish signals as it looks to follow the footsteps of VeChain and NEO. TRON has converted the $0.0187 resistance into support. In addition, I can see an impending golden cross between the 100-day moving average and the 50-day moving average.
Ontology seems to be following the same playbook. The cryptocurrency converted resistance of $0.80 into support. It also touts a possible golden cross between the 100-day moving average and the 50-day moving average.
Is it a coincidence that the two Chinese cryptocurrencies share the same setup? Probably not. Other crypto traders appear the have the same sentiment.
Traders are seeing an emerging theme in altcoins. They can see that Chinese coins have the potential to take the altcoin market out of bear territory. For instance, the widely-followed Crypto Rand is mighty bullish on TRON. The trader appears to be seeing the exact same setup where the previous resistance has been flipped into support.
Meanwhile, Crypto Michael is ultra bullish on Ontology. The trader sees a possible move up to $1.35 after the cryptocurrency bounced from support of $0.8. Interestingly, that’s the same setup mentioned above.
It is not just the USD base pairs of Chinese coins that look bullish. Traders are posting charts of various Chinese altcoins in their BTC base pairs. For example, an analyst named Escobar is so bullish on VeChain against bitcoin that he urges his followers to keep a “moon bag.”
Trader Loma is bullish on NEO against bitcoin. However, the analyst predicts a retracement before another leg up. The trader thanks China for the pump.
Chinese coins look to lead altcoins out of the bear market. VeChain and NEO are ahead of the pack. It is possible that TRON and Ontology will follow their footsteps.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.