Let us start with the update of the altcoin market cap to see if now it is time to look for altcoins to invest in. If you look closely, you can notice that the altcoin market cap has been falling as we predicted the last week. In the past week we have noticed developments that we consider important depending on how market cap evolves. To find out what are the possible paths, let’s start with trend-line analysis. If you look in the picture, you can see that altcoin market cap had broken bullish trend-line on the 4-hour time frame and bounced back right above it. In this situation, the next feature to look at, to be able to predict the next move, is the volume. As we have already explained, healthy bullish trend consists generally of falling volume on the retracement move followed by rising volume once the price bottoms. In the graph, we can see that as the pattern continues to form, the volume indeed decreased. Though after potentially bottoming out, the volume hasn’t been able to rise above declining volume trend, which makes us doubt the bullishness of this bounce. Additionally, the altcoin market cap currently dwells at the overhang EMA resistance and the volume has so far not begun rising. That leaves us with three short-term potential market cap paths. The first one is that the volume will begin growing as the market cap breaks through the EMA, and it will continue rising approaching the trendline resistance of the pattern, breaking out of it and confirming the bullish move. Another option is that the market cap will break through the EMA, though the volume won’t keep up with the move to be able to break out of the outlined pattern and the market cap will continue its fall. The last option is that the test of the EMA will be unsuccessful entirely, and altcoins will simply stay bearish. There are therefore 3 price paths that we could imagine crystalizing and two of them are bearish while only one of them is bullish. That makes us cautious to enter the market right now. If we have already seen an altcoin market cap bottom, it wouldn’t make a big difference in profits for us if we invested now or once the bullish breakout gets confirmed. What would make a big difference though is if we invested now, and the price followed our bearish scenario. In that case the next trend-line support is still very far away, which would create substantial losses for those who risked and invested at current levels. Our plan is therefore to wait and once we see a decisive bullish break out of the pattern, we will enter coins with big growth potential.
One of these altcoins with big growth potential is to our opinion IOTA with its latest Jaguar partnership and technical developments. Assessing the trend line, we can see that just like in the case of altcoin market cap, it got broken until the price bounced back right above it. If this was the second bottom, it happened on volume greater than the bottom of the last bearish reaction. The question therefore is whether the price will continue its climb, or it will fall back even lower. If we analyze IOTA by itself, the big volume would suggest further growth in price. As volume became that large after the Jaguar news, it’s though important to wait for confirmation whether other altcoins are bullish. If yes, the incoming wave will very likely be bullish and reach the green targets in the picture. If not, even though IOTA can continue its price hike, the chances favor that it won’t as altcoins generally tend to follow one another. Combining the two analysis, you might have already found out throughout the article that we believe that it’s safer to wait till the altcoin market cap decisively becomes bullish or bearish before we decide to invest. IOTA is in this case therefore one of the coins that we will be buying if the altcoin market cap breaks out in the bullish direction. To read why from the fundamental point of view, you can read about IOTA’s partnership with Jaguar in the article below.
To read about IOTA’s Jaguar partnership: https://go.daneel.io/news?s=jaguar-partners-iota-to-reward-drivers-with-crypto-for-reporting-road-condition
Don’t forget to think twice before placing an order and good luck until the next week!
