During the last analysis I focused mainly on altcoins, there is a belief that Bitcoin sale should trasnfer some of the profits to overpriced altcoins. Since then, several of them have grown and stopped being so attractive. Yesterday, while analyzing the charts I selected some interesting tokens worth checking out.
Main criteria:
- correction lasting at least 3 months
- drop from the top by at least 50%
- low RSI
- increased volume at H4 intervals
- important support
Name | Fall | RSI level | Volume | Support level |
NEM | 56,50% | 44 | No | Yes |
Stellar | 88,00% | 44 | Yes | Yes |
BitShares | 81,00% | 37 | Yes | Yes |
Zcash | 68,50% | 39 | Yes | Yes |
Steem | 72,00% | 38 | No | Yes |
Golem | 74,00% | 40 | No | Yes |
Siacoin | 79,00% | 34 | No | Yes |
On Monday morning #morningmarketcall I explained that "catching falling knives" never ends well. So why did I choose the overly discounted tokens? Because of the technical analysis pricipala I have repeated many times, those tokens might be an interesting investment opportunity.
- Support - once it's there, the price should trend upwards, support is important for a long-term perspective;
- Volume – higher on the buttom increased on the testimony of investors' accumulation of toxics, the smaller the risk of further falling, it should increase as the trend grows;
- RSI - Indicator of selling out / buying the market;
- Fall - depth of correction;
Tokens have been losing interest in the "streets", but the prices is certainly followed by investors looking for opportunities. Therefore, you should never begin invest to whole capital. Ideally, it will be a small parts, which over time can increase if the course will move in your side - so in a very simplecway it's all about “build” position. The lower the amount, the lower possible lossfor entire wallet. Don't forhet to keep track of smaller intervals and set stop losses wisely - never forget about them!
Which altcoins should you pay attention to? Defnitely those that meet all above conditions. However as I mentioned before, it is worth to keep track of the volume because it could indicate stron buy signal.
Please have a look at charts posted below, some of them were discribed in my posts. In case you have any questions, feel free to reach ou of me :) Don't hesitate to write in the comments tokens monitored by you.
NEM
Stellar
BitShares
##Zcash
Very well done!
And correct "cyptocurrency" on "cryptocurrency" in hashtags :-)
That's right! Thanks ;)
I noticed you didn't mention anything about Kanye coin - what gives?
I am not sure, is it irony? It is not even on https://coinmarketcap.com/