Of all the 5 alt coins under our radar, Monero and LTC have distinct accumulation characteristics after periods of lower lows.
In my view, our key support lines especially in NEO is being tested and while the depreciation or breakaways are not yet visible, that might happen today if $85 is smashed.
Let’s have a look at these charts:
After yesterday’s bear candlestick and relative swings over the last couple of days, Lumens prices are basically in an accumulation. The more prices oscillate like this, the longer the BB squeeze and the stronger the break out.
Considering this boring technical development, our forecast remains the same and all we have to do is play the patience game as we wait for a possible break above or below.
Of course, it would be ideal if bull pressure resume from current levels since stochastics are after all bullish and trending within the oversold territory.
It is for this very reason that I anticipate bullish pressure to build up and that can be true only if there is a surge past $0.30 and $0.35 in the next couple of days. Before then, I remain neutral with a bullish skew.
As it has been the norm over the past 3-4 days, altcoins and specifically Monero prices have been all over the map.
While the influence of March 9 bearish engulfing pattern still hold true, we still remain neutral unless there is a follow through of that bear move and sellers melt past $250 as they nullify our bullish break out pattern.
Our previous forecast still guides our trading and as long as Monero buyers are rejecting lower lows, bulls are theoretically in charge.
Today that may or may not be cancelled all depends on price action and how participants will react at the 61.8% Fibonacci retracement level. Anyway, a break out is ideal and that can either mean a strong appreciation towards $300 or a retest of February 6 lows of $170 in subsequent days.
Even after an undervaluation and oversold stochastics, EOS sellers are still pushing prices lower. From the chart, we can see that yesterday’s bears reversed March 11 gains and as long as there are no major gains above the middle BB or $7.5, its better to be neutral.
The reason for this view is that our main support at $4.2 is only a few ticks away and it won’t make sense to enter now. Instead, two things can happen. Remember our analysis remains net bullish.
Either there is a break above the middle BB which is our immediate resistance line or we see a real possibility of prices reversing back to $4.1 and December 22 lows of $3.1 in case buyers fail to support prices at the 61.8% Fibonacci retracement level.
While we can see a BB squeeze, there is a subtly higher high developing if we relate the recent candlestick lows with the lower BB. Notice those higher highs? Well, if this is the case then we can attribute LTC bulls buying into the stochastic buy signal that is already in place.
Technically, I remain neutral but like Lumens price action, I’m pro-LTC and still think the bullish break out pattern stemming from February 14 break out is valid.
From this perspective, it means prices might gain ground assuming there is a breach of the 20 period MA and main support (round number) at $200. If that come to pass, then we should have hints of higher highs today confirming that possible trajectory.
As long as NEO prices are trending above $85 and the 61.8% Fibonacci retracement level then I will take a bullish stand. After all, $85 is a key support line in our analysis.
As per our previous highlight, there is a little bit of undervaluation-March 9 candlestick- that needs correction and that will only happen if buyers push prices higher.
While yesterday’s candlestick is bearish, I recommend and actually take a neutral stand here until after there are higher highs closing above $100 and that might happen today if NEO buyers push prices higher. Do you notice these higher highs relative to the lower BB?
All BitFinex, Bittrex and CoinBase charts courtesy of Trading View
Photo via Getty Images.