Table of Contents
Do not index
In today’s Altcoin market update, I will cover Altcoin Dominance to give a broader picture on the Altcoin Market and where it is heading in the short-term and also mid-term.
Also, I’ll share my thoughts and views on a few Altcoins today, including:
- Coti (COTI)
- UniSwap (UNI)
- Polygon (MATIC)
- Dusk Network (DUSK)
- Enjin Coin (ENJ)
- Elrond (EGLD)
Let’s dive right in.
Â
Altcoin Dominance
Altcoin Dominance has broken beyond the orange diagonal multi-month resistance, rallying straight into the red region of resistance.
This red resistance acted as multi-month support throughout 2022.
Seeing as this is the first contact with this area, there could be some rejection.
Some rejection would be welcome and technically merited, as a rejection from here could send ALTDOM to the blue Range Low support which is also confluent with the orange diagonal.
This would be considered a retest attempt and a successful retest would see ALTDOM revisit the red highs here.
Generally, ALTDOM looking positioned for a rejection/dip is also reflected in many of the Altcoin price charts.
Many Altcoins look poised for a healthy dip as part of a retest attempt themselves.
And this ties in with the technicals for Bitcoin Dominance:
Because BTCDOM is in the process of retesting this red level as new support in the short-term, and such a retest here would see BTC.DOM rally up to the black Wedge Top.
BTCDOM could reject at the black Wedge Top but to get there, it would have to increase and as a result caused Altcoin Dominance to drop.
So in a nutshell, the BTCDOM retest could facilitate healthy dips on Altcoin prices.
But once BTCDOM revisits the black Wedge Top, BTCDOM could reject there which would in turn enable successful retests on Altcoin prices.
Let’s now take a look at the 6 Altcoins I have prepared for you today to get a better understanding of this aforementioned theoretical analysis through a more practical perspective.
COTI/USDT - Coti
As a preface, here is an analysis from earlier this month:
Here is today’s update:
Since retesting the green area which is approximately confluent with the black trendline, COTI has rallied +115%.
We discussed the possibility of COTI rallying from green to blue, which indeed took place, and then I shared a continuation to that analysis on Twitter regarding the upcoming retest of the blue level as support which would enable a move to the red diagonal resistance - and this has played out for a +22% move.
Right now, COTI is at the multi-month Lower High resistance and breaking that level would enable a move to the orange Range High resistance above.
Weekly Close above the red diagonal would be great confirmation for further bullish momentum.
COTI already dipped into the blue level for a retest and it was successful so it’s interesting to see how price reacts at this key resistance.
COTI needs to turn the red diagonal into support to move higher and a failure to do that could see COTI drop to the blue level again.
UNI/USDT - UniSwap
UNI is at the Macro Downtrend.
Break this and UNI would enter new macro uptrend.
At the moment, UNI is producing an upside wick beyond the Macro Downtrend.
However, the Weekly paints a different picture:
With two successive Weekly Closes occurring beyond the Macro Downtrend, there is a strong argument towards this Downtrend being broken.
And now, this dipping could be thought of as a retest attempt of the old Downtrend.
We’ll know soon enough because if this retest becomes successful, it would enable a bullish Monthly Close beyond the Macro Downtrend to confirm a higher timeframe breakout.
MATIC/USDT - Polygon
MATIC is dipping via the green path but needs to hold this red area as support to have a chance at rallying to the blue resistance above.
It’s key to note that previous retests following upward spikes have failed over the past few months so technically, probability skews towards MATIC failing a retest here and dropping into the green box below.
However, given how the market has behaved lately with many Altcoins actually going against their technical trends, there is a chance MATIC could retest this red area as support.
Red area is pivotal for directional bias.
DUSK/USDT - Dusk Network
As a preface, here is last week’s DUSK analysis:
And here is today’s analysis:
DUSK has indeed followed the green path, successfully retesting the blue level as support and then breaking beyond the red resistance.
For DUSK to continue following the green path, DUSK needs to soon dip into the red area for a retest attempt.
Successful retest there and price will eclipse these 2023 highs.
ENJ/USDT - Enjin Coin
ENJ is currently at resistance which could prove troublesome for ENJ in the short-term.
A dip into the red level below at $0.344 could be necessary for ENJ to move higher within this red-red range.
EGLD/USDT - Elrond
As a preface, here is last week’s analysis:
And here is today’s analysis:
EGLD is following the very infant stages of this green pathway, having already successfully retested the blue level as support for a +14% rebound.
However, price hasn’t revisited the orange area which is needed for price progression via the green path.
On this dip, it’s important for EGLD to form a Higher Low or at the very least form a Double Bottom against the blue support to continue its newfound momentum.
Thank you for reading.
P.S.