The cryptocurrency markets staged a rebound late last week after Thursday’s profit-taking, and a number of altcoins are looking increasingly bullish in the short and long term.
Cardano (ADA) could skyrocket to $4 in the coming weeks if key technical and psychological levels are breached, while ZAP – arguably the most undervalued token analyzed in this article – also appears to be setting itself up for a strong upwards run.
It’s the start of a new week, so let’s review what’s in store for a handful of promising altcoins.
ADA/USD upside run capped by a strong barrier
ADA/USD Daily Chart
Cardano’s (ADA) bullish advance was halted by a strong price barrier at $3.03, and the cryptocurrency is expected to consolidate lower. ADA/USD traders profited when the pair surged to an all-time high of $3.026 in the previous week.
After buyers moved in at the $2.51 support base, ADA may now range in the upside channel. Limited upticks are expected to precede fresh deterioration, with the $3.03 barrier serving as a useful stopgap.
Only a recovery and a close above the $3.026 high would put the brakes on bears and give bulls the upper hand. If this occurs, ADA bulls may set their sights on the $ psychological level.
However, if short-sellers are successful in driving ADA/USD down in the coming trading sessions, the likely target will be around $1.90- $2.33. Bearish traders, on the other hand, may find support between the MA 50 ($1.75) and the rising trendline ($1.20).
ZAP/USD lays the foundation for an upside run
ZAP/USD Daily Chart
Early in August, ZAP/USD completed a bullish crossover pattern with steps above the moving average (MA 50), thereby laying the foundation for a new bullish wave. The positive setup occurred around the broken $0.0460 horizontal level, which had previously functioned as an important support level in May, reinforcing the argument for an upside reversal. If the surge continues, it could reach $0.1730, the token’s high point from May.
The signals in momentum indicators are also optimistic, with a rather clear rebound, however, the relative strength index has yet to jump above its 70 overbought thresholds, and the moving average (MA 50) remains below the price, indicating decreasing negative momentum.
As a result, while the price approaches the rebound zone, which is within striking distance of the MA 50, the surge may be spontaneous.
MATIC/USD Pullback finds footstep above $1.30 support
MATIC/USD Daily Chart
Polygon (MATIC) bounced on Monday as the prior day’s pullback found footstep just above the solid support at the $1.309 horizontal zone. MATIC’s recovery could face immediate resistance near $1.50 ahead of the $1.739 level, a challenging point since June.
A clear break above the $1.739 resistance could push the price further higher. The next main resistance is located near the $2 psychological level, above which the price is likely to accelerate higher to target the May all-time highs at $2.89.
If a bearish scenario plays out, a clear break of support around $1.258 might serve as a catalyst for a negative acceleration towards the MA 50 at $1.17 and the July 20 low ($0.62) in extension. The RSI indicates that the general picture on the daily chart is rangebound, thus MATIC could consolidate for a while before bulls begin new upside strikes.
GRT Price Analysis: Bulls May Hold in Extended Consolidation
GRT/USD Daily Chart
Following the previous day’s falls, Graph (GRT) is consolidating in early Monday trading. The price is progressively rising, but to confirm a positive scenario, further recovery attempts must close above the $1.092 horizontal barrier and the MA 200 at $1.20. Beyond this, the bull’s eye upside target is $2.20, with a potential extension to $2.89 (its February all-time high).
On the daily chart, however, technical indicators, particularly the RSI, warn of protracted consolidation before bulls resume. Near-term bears, on the other hand, will face headwinds from strong bids around the $0.81 horizontal support level, which is just ahead of the MA 50 at $0.75. Further falls might lead to a retest of the $0.47 lows, followed by the $0.42 level, where the bulls could enter.
The crypto markets are continuing to benefit from Bitcoin’s (BTC) recovery, and many investors are growing increasingly optimistic.
ADA and ZAP, in particular, look highly promising and could deliver the strongest long-term returns to investors who are not afraid of investing in cryptocurrencies other than BTC and ETH.
The coming weeks will be critical, with a number of analysts forecasting many coins and tokens to reach their all-time highs late this year if the crypto markets can steadily build momentum in September and October.