Dash (DASH), Stratis (STRAT) and Nem (XEM) have reached significant support areas that, historically, have been catalysts for upward movements.
All three were some of the biggest risers during the 2017 bull market. However, they have been slowly decreasing since — causing the cryptocurrency community to leave them behind and focus on other less-established cryptocurrencies.
Cryptocurrency trader @galaxyBTC stated that, instead of chasing pumps, investors should be focused on well-established coins that have yet to initiate new market cycles. This advice came after MATIC decreased by 70 percent in roughly one hour.
The ones above are just an example, but accumulating coins which delivered and survived over the years seems a safer alternative to chasing pumps.
Altseason barely started and there is no reason to rush. pic.twitter.com/gGv42uWPZg
— Galaxy (@galaxyBTC) December 9, 2019
He noted that DASH, STRAT and XEM have fallen to levels not seen since 2016 — making them attractive investments from a risk/reward perspective.
Let’s analyze the outlook of each of these coins individually and decide which is the better investment.
The DASH price has almost fallen to the support area of ₿0.006. This area was the catalyst for both the upward movement of 2015 and 2016. However, the price has fallen below two minor support areas at ₿0.008 and 0.01 and will likely face resistance from them on the way up.
An interesting development comes from the weekly RSI. It is both oversold and has generated strong bullish divergence. Neither of these things has previously happened by itself, let alone combined. This suggests that the market has reached, or will soon reach, a low and begin to move upward.
In lower time-frames, the DASH price has laid out the first steps of an upward cycle by creating an Adam & Eve double bottom.
Furthermore, during the Adam bottom, the Dash price moved below the lower Bollinger Band. It has done that twice since September, initiating a reversal both times. If the price moves above the 100-day moving average (MA), we can assume that a significant upward move has begun.
NEM (XEM) already reached the major support area at 400 satoshis in August. This area acted as temporary resistance in May 2016 before the price broke out. Afterward, the price validated it as support at the beginning of 2017 and began the yearlong upward trend.
The closest resistance area is at 800 satoshis, allowing for more movement — even if the price continues trading in a range.
Similar to DASH, the weekly RSI is at an oversold level for the first time in history. Additionally, there is some bullish divergence developing.
In the short-term, XEM has been trading inside a symmetrical triangle since September.
It has moved above the 100-day MA, indicating that it wants to make an upward move.
A minor move began on November 16 and the price has been retracing since.
Stratis has fallen to its 2016 lows at 3400 satoshis. This support area acted as a catalyst for the 2017 upward move.
Similar to both DASH and XEM, the weekly RSI is oversold and has generated a bullish divergence. Therefore, the long-term outlook suggests that all three coins are very close to the bottom.
Since August, STRAT has been trading in a range between 3200 and 4500 satoshis.
It has also moved above the 100-day MA, suggesting that the trend has already been changing and STRAT will move upward.
In order to do so, it must find support above this MA instead of again dropping to the 3200 support area.
To conclude, all three coins are at optimal positions for the beginning of new market cycles.
While XEM and STRAT have already made minor upward moves which could be the first step in an uptrend, DASH has created a bullish pattern but has yet to initiate a breakout.
Images courtesy of Twitter, TradingView, Shutterstock.
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Source: Be In Crypto