Numerous large and small-cap altcoins are rallying as Bitcoin price trades in the $9.3K to $9.5K zone.
Bitcoin (BTC) and large-cap cryptocurrencies have shown significant strength over the past few weeks but traders are also starting to pay attention to smaller cap coins. One of these coins is Icon (ICX), which has surged more than 200% over the past three weeks.
Similarly, WanChain (WAN) and AION (AION) also gained 60% and 120%, therefore an analysis of these coins is warranted.
Crypto market daily performance. Source: Coin360
Icon breaks 2-year old downtrend against USD
Bitcoin recently broke out of a 7-month downtrend and as this happened many other coins broke their 2-year old downtrends. An example is shown through the chart of Icon.
ICX USD 1-day chart. Source: TradingView
The chart is showing a clear break of the 2-year old downtrend, which resulted in an upwards surge towards $0.39. This surge is a move of more than 200% in a matter of weeks.
The chart is also showing an apparent breakthrough of a critical level, which is the $0.18 level (green horizontal line).
Some things to bear in mind; significant upwards rallies of this size cause FOMO (fear of missing out) amongst traders. However, such an upwards rally usually retraces and corrects to find new support areas.
Given that the chart is showing an RSI of 95, it’s likely to see some correction before continuation.
ICX USDT 12-hour chart. Source: TradingView
The 12-hour chart is showing similarities with the 1-day chart. An apparent breakthrough of a downtrend, which caused a strong upwards move. The RSI is also at very high levels, indicating that the price needs some consolidation before continuation.
Current areas to watch for potential support are found at $0.285-0.30, $0.245, and $0.215.
The first area ($0.285-0.30) is a significant area as the price of ICX bounced on this level through the summer of 2019.
If ICX can find support at the $0.285-0.30 level, continuation towards the range high at $0.45 is likely. If it can’t find support at this level, extension downwards to $0.245 is a possible outcome.
ICX/BTC breaks out of 6-month sideways range
ICX BTC 12-hour chart. Source: TradingView
The ICX/BTC pair recently broke out of a 6-month sideways range and immediately rallied towards the next resistance. This resistance is found at 0.00004000 – 0.00004200 satoshis where the price is currently hovering.
The RSI provides a similar view as its USD pair, which is screaming for a consolidation period. In the event of a pullback, the levels of possible support are the green zones at 0.00003100 – 0.00003200 satoshis and 0.00002450 – 0.00002550 satoshis.
The first level is the primary area to go for. In bullish momentum, retracements are relatively short as buyers are running over each other to get into the asset.
ICX BTC 1-day chart. Source: TradingView
When the Fibonacci retracement tool is added to the chart, the essential areas of 0.35-0.382 and the 0.618-0.65 Fibonacci retracement levels are at the same levels of potential support. Therefore, the primary area to look for is the upper green zone as possible support.
However, a breakthrough above the resistance could occur. If ICX breaks to the upside, the next resistance is found at 0.00005100 – 0.00005200 satoshis.
WanChain appears eager to follow Icon
Usually, when Icon starts to move, the other interoperability coins follow suit, as these coins are connected. WanChain is one such coin and it surged around 65% in the past three weeks.
WAN USD 1-day chart. Source: TradingView
WanChain broke through the resistance at $0.20 and rallied towards the next level at $0.27 at which it’s currently hovering. A breakthrough of this level would result in a continuation of the next resistance. This resistance is found at $0.48 and would warrant another move of 80%.
However, if WanChain can’t break through this level, a retest of the previous resistance is likely to occur. Such a move would mean a retest of the green zone around $0.20.
Wanchain faces strong resistance in its BTC pair
WAN BTC 1-day chart. Source: TradingView
The WAN/BTC pair is showing similarities with the USD pair as its pinned in by a nearly identical resistance zone.
The support found at the green zone (0.00001950-0.00002000 satoshis) was confirmed through a double bottom and after this, the price broke further upwards to the range high around 0.00002800 satoshis.
WAN is currently unable to push through this level. However, a breakthrough would generally follow a continuation towards the next resistance which is found at 0.00004500 – 0.00004700 satoshis.
AION/USD rallied 130% in three weeks
AION USD 1-day chart. Source: TradingView
Aion is showing similarities with the Icon chart. A powerful upwards rally led the price to hit significant resistances and the surge took place on a sharp increase in volume.
Arguably, do we see a break upwards here or not? At this point, Aion is facing massive resistance and it didn’t break through it like the other altcoins.
A healthy correction towards $0.09 or $0.10 would suit the movements of Aion as this would allow new support to be found.
If this support is found, continuation towards top targets at $0.18 and $0.24 are likely to occur. However, if there’s not support warranted at either of the two levels, downwards movements are likely to occur. This would lead to a retrace towards $0.06.
Aion faces huge resistance in its BTC pair
AION BTC 1-day chart. Source: TradingView
The AION/ BTC chart shows that Aion is currently hovering against massive resistance and it’s unlikely to break upwards from here in one go, especially given the state of the RSI.
If the price of Aion can’t break through this level, potential support levels are found at 0.00001050 – 0.00001070 satoshis and 0.00000980 – 0.00001000 satoshis.
However, if the price breaks through this resistance, the party can continue.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
