According to analysts, 5 altcoins that trade above the 200-day SMA will likely outperform other cryptocurrencies. cryptocoin.com We have compiled for you these 5 altcoins that are expected to explode.
The importance of the 200-day SMA
The 200-day Simple Moving Average (SMA) is often considered an important technical indicator for determining whether the crypto is in an uptrend or a downtrend. The crossing of this indicator with the 50-day SMA will confirm the continuing trend.
For example, SCALE (SKL) price saw an 82% gain on Feb. 6 after converting the resistance formed by the 200-day SMA to the support base. Following this move, SKL also broke the $0.3664 hurdle and tagged the $0.0601 blockade, marking a local high of $0.06979, up 82% in four days.
5 altcoins trading above the 200-Day SMA
Tron (TRX)
TRON price action is by far the best among the group for several reasons, increasing the chances of an explosive move. The main reason behind this uptrend is that it broke above the 200-day SMA on January 26. Since then, the altcoin has had about three weeks to trade above it.
The second reason is that TRX is producing a hidden bullish divergence. This technical formation occurs when the price of the asset produces higher lows while the momentum indicator, in this case the Relative Strength Index (RSI), produces lower lows. This mismatch is usually detected in an uptrend when the underlying asset produces a pullback. The setup shows that the uptrend is continuing.
TRON price is facing an intermediate hurdle at $0.0645. If the bulls break through this hurdle, it will confirm the start of an uptrend. TRX could rally 12% to sweep equal highs at $0.0720. Beyond this level, market makers can target liquidity above $0.0932, which will require a 44% increase from $0.0645.
Enjin (ENJ)
Enjin price action is similar to TRON as it not only broke above the 200-day SMA but also actively pointed to a hidden bullish divergence. So far, ENJ is up 130% in the last 40 days and has also turned a key $0.4121 resistance level into a support base.
Interestingly, the 200-day SMA coincides with the aforementioned level, making it a critical level for the bulls to defend. Traders can expect ENJ to continue its uptrend from this level and target the next hurdle at $0.5753, roughly 34% away from its current position of $0.4385.
Ontology (ONT)
Ontology price action is the third-best altcoin according to analysts due to its position above the 200-day SMA and recently breaking the $0.2124 barrier. Additionally, the altcoin is showing a hidden bullish divergence, with net high lows forming on its 79% rise.
Therefore, a bounce of the mentioned support level from $0.2124 will be key in triggering a 26% rise to the $0.2592 barrier. Although unlikely, the translation of this blockade to a support base could allow ONT to tag the $0.3430 barrier, increasing overall gains from 26% to 67%.
Solar (SXP)
Solar price action is the fourth best altcoin according to analysts who reversed the 200-day SMA on Feb. 12 and prepared for the uptrend. The reason this altcoin is ranked fourth instead of third is because it needs to confirm that it has successfully turned the $0.3428 hurdle into a support base.
A daily candlestick above this level will confirm the presence of the bulls, but retesting is required in case of a pullback. This type of confirmation will be an important signal for investors to determine their stance on SXP. In such a case, the price of this altcoin could spike 46% and tag the $0.5040 hurdle, provided it surpasses the intermediate resistance level of $0.4420.
Cosmos (ATOM)
Cosmos price action is weaker than other altcoins due to the lack of obvious high bottoms that do not confirm a hidden bullish divergence. Traders can expect ATOM to drop 9.40% to tag the 200-day SMA at $11.88.
The momentum indicator has dropped below the neutral point for ATOM, indicating the presence of sellers. However, if the bulls defend the $11.88 level, investors can expect a 48% bounce that pushes Atom price to retest the $17.54 barrier.
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