Crypto Technical Analysis: HT, ONT, BAT, DGB, ALGO, KSM, OCEAN, ABBC
Recent volatility has created many interesting opportunities in the cryptocurrency market.
Some altcoins had big breakouts that quickly reversed, but found support on higher than pre-breakout levels (XEM, ALGO, HT, OCEAN, DOGE, XRP, LINK), which could serve as a springboard for uptrend continuation (after some consolidation).
Others did not participate in the recent market rally (ABBC, OCEAN), which makes one wonder why. What would it take to make buyers notice these poor orphans. If the rising waters are not enough to lift these boats, what will?!
Trend following traders, looking for solid Uptrends that have had a pullback, could examine KSM, CEL, WAVES, BTC, ETH, LTC among others. You can find more coins with a Pullback in Uptrend in our Signal Summary section.
Swing traders looking for coins that reversed their gains and are sitting at Support levels, ripe for a possible bounce up, could examine a far longer list: ALGO, DGB, ONT, BAT, among others.
ABBC – Shaky Albeit Bullish Breakout from a Falling Wedge
ABBC (ABBC Coin) is in a Long-Term Uptrend, but its Medium- and Short-Term trends remain Down. Price formed a Falling Wedge pattern during October. Falling Wedge pattern is characterized by lower lows and lower highs with a contracting range. If it forms during an Uptrend (our case), it is considered a continuation pattern, which typically resolves in an upward breakout. Indeed, price broke out upwards on Nov 14, but without much fanfare (low volume and no follow up – faded).
It has since retraced back to Support at ~$0.20. Momentum is bearish (MACD and RSI), although improving (getting less bearish) and OBV is trending down (volume on Down days exceeds volume on Up days). It’s shocking that ABBC did not participate in a recent altcoin rally, which makes one wonder what would it take to get it going again.
KSM – Textbook Uptrend, Poised to Advance Higher Yet
KSM (Kusama) is in a Strong Uptrend across all time horizons (Short-, Medium-, Long-Term). Following a big runup in late August, the price consolidated during September and has formed an Up Channel since early October that has the markings of a major upward trajectory, with steady Higher Highs and Higher Lows. MACD produced a Buy signal on Nov-6 and RSI crossed above 50, indicating bullish momentum. ADX (trend strength) at 28 is indicating a strong Uptrend.
Price broke through a horizontal Resistance Zone ~ $40 and out of the Channel, then encountered the next Resistance Zone at $50. Big volumes have accompanied the recent advances as illustrated by a rising OBV (volume on Up days vs Down days), confirming demand from buyers.
ALGO – Fell Short of a Breakout from Sideways Consolidation Channel
ALGO (Algorand) is in an Uptrend on a Long-Term basis, but Medium- and Short-Term are in a modest Downtrend, though it looks more of a sideways Channel now. Recent altcoins rally helped repair the damage in ALGO’s outlook, after it had broken down from its Sideways Channel. Although momentum (MACD Crossover and RSI > 50) and OBV (volume on Up days vs Down days) picked up, it was not enough for a breakout through the $0.350-$0.375 Resistance Zone.
Traders could resume trading the Sideways Channel (Buy Support ~ $0.300, Sell Resistance ~ $0.350) or wait for a breakout (either Up or Down).
HT – Reversal (Up) in a Making? Need More Evidence But It Looks Promising
HT (Huobi Token) is trading down on the Long- and Medium-Term basis, while Short-Term trend has improved to Neutral. Following a Bear Flag in early November, which did play out as it should (down), the price found support at $3.50 and rallied up hard on big volume. It reached and got rejected at $4.50, which is a formidable Resistance area.
It now appears that the price is settling into a Channel Up pattern, though it is early and traders should wait for more supporting evidence. Momentum has weakened (MACD, RSI < 50) a bit on this correction, but OBV (volume on Up days vs Down days) is rising, indicating robust demand from buyers.
OCEAN – Back to Sideways Trading Channel, With Unclear Prospects
OCEAN (Ocean Protocol) is in an Uptrend on a Long- and Medium-Term basis, but Short-Term Trend has flattened out (Neutral). After a monster August (as did most altcoins), OCEAN formed a Double Top, a bearish reversal pattern, which along with a MACD Sell signal served as a warning that trend was changing. In September and October, price consolidated in a tight sideways range ($0.30-$0.40) and finally broke out to the upside in late October, with huge volume, which confirmed the breakout.
Price reached $0.60 but there were warnings along the way: 1) Bearish RSI Divergence (price made higher highs but RSI declined – see chart), 2) Bearish MACD Crossover on Nov 7, 3) OBV was flat (volume on Up days about equal to volume on Down days). Indeed, price has retreated back through $0.50 Support down to $0.40, a former Resistance now a Support Zone (concept known as Polarity). Also of concern is that OCEAN did not participate in a recent altcoin rally in mid-November, quite the contrary. Near term, the upside ($0.50) and downside ($0.30) scenarios appear about equal, perhaps slightly tilted towards a bearish outcome.
DGB – Falling Wedge Resulted in a Reversal
DGB (DigiByte) is still in a Downtrend on Long-Term basis, but Medium-Term has Neutralized and Short-Term Trend has reversed to Uptrend. Notice the Falling Wedge pattern that formed during September and October. Falling Wedge pattern is characterized by lower lows and lower highs with a contracting range. If it forms during a Downtrend (our case), it is considered a reversal pattern, as the contraction of the range indicated the downtrend was losing steam. Indeed, price broke out upwards on Nov 17.
While it has retraced most of those gains, if it stays above the $0.02 Support area, it could resume its recent Uptrend, or at least swing Up to the Resistance zone around $0.0275. Recent bullish price action was confirmed by solid uptick in OBV (volume on Up days vs Down days).
BAT – Falling Wedge Resulted in a Reversal
BAT (Basic Attention Token) is still in a Downtrend on Long-Term basis, but Medium-Term has Neutralized and Short-Term Trend has reversed to Uptrend. Notice the Falling Wedge pattern that formed during September and October. Falling Wedge pattern is characterized by lower lows and lower highs with a contracting range. If it forms during a Downtrend (our case), it is considered a reversal pattern, as the contraction of the range indicated the downtrend was losing steam. Indeed, price broke out upwards about a week ago.
While it has retraced some of those gains, if it stays above the $0.20 Support area, it could resume its recent Uptrend, or at least swing Up to the Resistance zone around $0.275. Recent bullish price action was confirmed by solid uptick in OBV (volume on Up days vs Down days).
ONT – Needs to Hold and Consolidate Around Current $0.50 Level To Confirm a Reversal From a Downtrend
ONT (Ontology) is in a Downtrend across all time horizons (Long-, Medium-, and Short-Term), although recent price action is improving. A bearish Death Cross (50 Day SMA crossed below 200 Day SMA) formed on 30th October. More recently, price broke out upwards through Resistance ~ $0.53, with big volume, all the way to $0.70 were it was rejected, and it one fell swoop retraced all the way back to $0.50, which is now both a horizontal Support zone and a Trendline Support.
If it holds here, it could establish a beachhead, consolidate and lay the grounds for another attack of $0.70 Resistance. Recent big volume (OBV) points to a healthy demand from buyers, and momentum is solid, although diminished but that is typically during corrections.
Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. There are risks associated with investing in cryptocurrencies. Loss of principal is possible.