Ethereum Classic, Basic Attention Token, and Ravencoin prices show strong gains
On June 3, Ethereum Classic hit a yearly high of $9.85. The move followed a nearly 200 percent upswing that began in early December 2018 when it was trading at $3.30. Many investors took this peak as a profit point, causing ETC to then plummet 49 percent, hitting a low of $5.03 on July 16.
Since then, this cryptocurrency entered a consolidation phase and traded between $6.50 and $5.50. This trading range was seen as a no-trade zone by many traders due to the uncertainty of the trend.
As the consolidation period developed, the Bollinger bands on the 12-hour chart squeezed. Squeezes are indicative of periods of low volatility and are typically followed by periods of high volatility. The longer the squeeze the higher the probability of a strong breakout.Â
After more than a month, the outlook predicted by the squeeze manifested itself in an impressive break out. The spike in volume was significant enough to push ETC up 40 percent in three days.
At the moment, it seems like ETC took a break from the recent upswing as it prepares for its next move.Â
By measuring the Fibonacci retracement indicator from the low of $3.30 on Dec. 7, 2018 to the high of $9.85 on June 3, one can identify a series of support and resistance levels.
Ethereum Classic is currently testing the resistance given by the 38.2 percent Fibonnaci retracement level that sits at $7.35. Breaking above this level may allow ETC to continue appreciating and test the next level of resistance, around $8.30 (23.6 percent Fib). Otherwise, if selling pressure increases it could send prices back to the 50 percent Fibonnaci retracement level ($6.57).Â
Based on the 3-day chart, it appears a head-and-shoulders pattern is developing, which will validate the bearish view derived from the Fibonacci retracement indicator. If this is the case, ETC could be forming the right shoulder and it may drop to the neckline mark around $5.45.Â
A break below the neckline will validate the bearish formation and could be succeeded by a 40 percent drop that takes Ethereum Classic down to $3.20 (calculated by measuring the height from the neckline to the head of the pattern). However, a move above the height of the left shoulder, at $8, could invalidate the head-and-shoulders pattern.Â
Basic Attention TokenÂ
Following its high of $0.503 on April 21, Basic Attention Token corrected 67 percent to hit a low of $0.168 on Aug. 14. Since its peak, BAT appears to be trading inside a descending parallel channel. Its downward price action has so far been contained inside the two parallel lines of the channel.Â
At the moment, BAT is near the middle of the channel following a rebound from the channelâ€™s floor.
Even though volume seems to be increasing, signaling more legs up, Basic Attention Token may run into resistance given by the 30-day moving average. This technical indicator rejected the price of BAT several times in the past. As such, it poses a threat to the uptrend that started over a week ago.
If the 30-day moving average continues to hold, then Basic Attention Token will likely go to the bottom of the descending parallel channel. If there is a spike in buying pressure behind BAT, then the probability of a break above the 30-day moving average is not unreasonableâ€”allowing the coin to push through to the 50-day moving average, or even hit the top of the descending channel.Â
Ravencoin trended down for the last 11 weeks. Despite the sell pressure that took this cryptocurrency down 60 percent from the recent of $0.081, the TD sequential indicator is currently signaling that a potential upswing is underway.Â
In fact, this technical index is given a buy signal in the form of a red nine on both the 1-week and 3-day chart. If validated, the bullish signals could put a pause or an end to the bearish trend.
Based on the Fibonacci retracement indicator, Ravencoin is currently trading around the 61.8 percent level. Classically, this is the â€˜goldenâ€™ retracement zone for technical analysts.
A combination of the bullish signals per the TD sequential indicator and the current Fibonacci retracement level suggest that RVN could surge at any moment. Therefore, an upswing from current price levels could allow it to test the 50 percent Fibonacci retracement level, currently at $0.0449.
The Crypto Fear and Greed Index reached its lowest value in history as Bitcoin hovers below $10,000. Despite the extreme level of fear that the CFGI sees in the market, this can be taken as a buying opportunity based on historical data.Â
Consequently, it seems like the market could soon experience a high level of volatility, especially to the bullish side for BTC. Other promising developments include a rebound in altcoin dominance, jumping off a trendline that has acted as support among altcoins since Aug. 2014â€”potentially starting the next â€œaltseason.â€�Â
If so, the bullish outlook for the above altcoins could get even more fuel.
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