Yerevan (CoinChapter.com) — Reef is among the most blockbuster altcoins on Tuesday, just as the entire cryptocurrency takes a break from its bullish bias and log aggressive intraday losses. The low-cap digital asset surged by more than 20 percent on a 24-hour adjusted timeframe against the US dollar. It performed equally strong against top rivals Bitcoin and Ethereum, both of which corrected lower amid escalating profit-taking sentiment among day traders.
Other altcoins failed to grab onto rich tokens’ weaknesses. Cardano, counted among the high-ranking blockchain projects, saw its native token ADA rising but by comparatively small margins. However, the ADA/USD exchange rate promised upsides owing to its transition to proof-of-stake much before its rival Ethereum. Weiss Crypto, a crypto-focused research group, also noted that ADA might be ready for mass adoption sooner than Ethereum due to its speedier protocol upgrades.
Even though the future we see is multi-chain with interoperability – rather than winner-takes-all – being king, it's still possible that $ADA may be ready for mass adoption sooner than #Ethereum, and if so, the sky is the limit for #Cardano.
Holo’s HOT token also posted minimal profits but showed signs of rebounding higher in the coming sessions. Altcoins like BitTorrent’s BTT and Wink’s WINK underwent a similar reversal trajectory to promise extended gains.
Let’s go through the potential entry and exit points in each tokens’ market.
Death Cross Looms Over WINK
The WINK/USDT exchange rate has been trending inside a descending triangle range, confirmed by a falling upper trendline acting as resistance and a flat support trendline serving as support. The pattern shows that sellers are more aggressive than buyers as prices make a sequence of lower highs. It completes when the price breaks out in the direction of its previous trend.
The short-term trade setup looks like this: traders could enter a long position towards the upper trendline resistance on a rebound move from the Triangle support. Meanwhile, an extended sell-off below the lower trendline increases WINK’s risks to test $0.0006 as its downside target.
One has to notice that the descending triangle appears during a bearish correction phase, as shown in the chart above. That shows that the market’s bias is skewed towards the bears. More negative tailwinds come from a potential death cross formation between WINK’s 20-day exponential moving average and 50-day simple moving average.
Meanwhile, a bullish break above the Triangle channel pattern — should it come — could have traders extend their long positions to the next upside range of $0.0016-0.0018.
BitTorrent (BTT) Triangle Pattern Like Other Altcoins
BitTorrent’s trade setup is more or less the same as WINK. The Tron-backed altcoin is trading inside a Descending Triangle, as shown in the chart below.
A breakout move above the Triangle’s upper trendline could have traders open long positions towards the next upside target levels near $0.009, $0.010, and $0.011, depending on their risk appetite. Meanwhile, a break below the range could have them place a short entry towards $0.004 as their primary downside target.
Holo (HOT) Death Cross In Action
WINK setup continues to influence other altcoins. Holo’s HOT token is no different. It continues to trade inside a descending triangle pattern, except it has already confirmed a death cross formation between its 20-day exponential moving average and 50-day simple move average.
The $0.016, $0.021, and $0.024 levels provide a potential long opportunity should the HOT price break above the triangle range. Meanwhile, the 0.010-level serves as a downside target on a break below the pattern.
REEF Different from Other Altcoins
Unlike other altcoins above, the REEF/USD exchange rate attempted to break a classic trendline resistance on Tuesday but fell short of confirming a breakout. So it appears, traders shorted the pair at its intraday high to land it back inside its prevailing sideways parallel range.
A pullback from the channel’s upper trendline could have traders test the $0.0386-level as an interim short target, extendable towards the lower trendline that coincides with the $0.026-level. Meanwhile, a bullish breakout move could have traders open long positions towards $0.05, $0.071, and $0.088, based on their risk profiles.
Cardano (ADA) Seeking Breakout Confirmation
Cardano’s is among the only altcoins among the ones mentioned above that currently seeks a breakout confirmation. It has broken out of a previous sideways channel range and now tests the pattern’s upper resistance trendline as its newfound support.
Cardano prices eyes $2-price target should the breakout get confirmed. Source: ADAUSD on TradingView.com
Meanwhile, a successful breakout move above the Channel range could take the price up to $2. Meanwhile, returning to the previous trading area tends to lead altcoin’s traders into intra-range trading.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN.
Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
