The altcoin correction continued for the third straight week. The pullback was further aggravated by Bitcoin’s (BTC/USD) refusal to correct. Bitcoin’s strength forces market participants to limit their exposure to altcoins. This is why we’re seeing weakness in many altcoin BTC pairs including large caps.
However, altcoin charts show a different story when trading against the US Dollar. Many are showing the resiliency and the resolve to maintain bullish momentum. This is why for this week, we look at large cap coins in USD pairs that are either retesting or holding key support areas. Here are the five altcoins to watch this week.
Ethereum is an example of the huge difference between its BTC (ETH/BTC) and USD (ETH/USD) pair. The ETH/BTC chart looks like it is hanging on for dear life but the ETH/USD pair is bullish.
A quick look at the ETH/USD chart shows that the market breached key support of $160 on April 25, 2019. This price area is crucial because Ethereum struggled to take out this level for five months. However, the break below $160 appears to be a fake out as bulls are working hard to reclaim that level.
Daily chart of ETH/USD
If Ethereum retakes $160, the logical target for bulls is $250. Otherwise, the market will likely drop to support of $146 where it must hold or risk an even deeper plunge.
Ripple is in the same boat as Ethereum in terms of disparities in BTC (XRP/BTC) and USD (XRP/USD) pairs. The XRP/BTC chart looks extremely bearish but the XRP/USD chart looks appealing, especially to bottom pickers.
Daily chart of XRP/USD
A read of the daily chart shows that bulls have managed to keep support of $0.29 intact. On top of that, the rejection to trade at lower prices was swiftly rejected. This tells us that Ripple is likely to touch range high of $0.38.
However, it is important to note that Ripple has tapped support of $0.29 three times already in the current accumulation. Thus, if bulls fail to capitalize on this bounce, we might see the market drop to $0.25.
The chart of EOS looks good. The price action is spoon feeding us the market’s current range. In other words, EOS is providing obvious signals where to buy and sell positions.
Daily chart of EOS/USD
An analysis of the daily chart shows that EOS is headed to support of $4.30. A successful retest of this level is essential for EOS to maintain its bullish momentum. Should the market flip this former resistance into support, the logical target is $6.
Monero took out resistance of $57 on April 1st. The price action triggered a breakout from an ascending triangle on the daily chart. The breakout ignited a rally that sent Monero to as high as $73.002 on April 3rd.
Daily chart of XMR/USD
Currently, Monero is pulling back but it gives us the chance to buy the dip. Our buy area is as close to support of $57 as possible. A successful retest of this price level is bullish. It would drive bulls to target resistance of $76.
Basic Attention Token (BAT/USD)
Basic Attention Token is one of the most bullish altcoins in the last couple of weeks. On April 16th, bulls took out resistance of $0.30. This catapulted BAT/USD to as high as $0.50355 on April 21st. While the market may look extremely bullish to the untrained eye, in reality, it is not. It looks toppish and ready to correct.
Daily chart of BAT/USD
Even with the recent pullback, Basic Attention Token is still in overbought territory. This tells us that a deeper correction might be on the horizon. If that’s the case, the buy zone is between $0.30 and $0.32. Should BAT/USD flip the former resistance into support, the initial target is the range high of $0.50.
Altcoins may be getting crushed against Bitcoin but they appear to be doing well against the US Dollar. This is why for this week, we watch the USD pairs. Many look bullish while some offer solid bottom picking prospects.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.