Altcoin Newsletter #98
2017 Altcoins Edition
Welcome to the Rekt Capital newsletter, a resource for people who want to better navigate the crypto markets with the help of cutting-edge crypto research and unbiased market analysis.
Every Friday, I host an Altcoin TA session where I share my exclusive commentary on the price action of a wide variety of coins, requested by valued premium members of the Rekt Capital Newsletter.
I share charts on 8 coins today.
In today’s Altcoin newsletter, I cover 8 different Altcoins, specifically:
Litecoin (LTC/USD)
Neo (NEO/USD)
Solana (SOL/USDT)
Monero (XMR/USD)
OMG Network (OMG/USDT)
Cardano (ADA/USD)
Aave (AAVE/USDT)
Storj (STORJ/USDT)
Let’s dive in.
Litecoin - LTC/USD
LTC has reached its historical demand area (green).
In fact, this demand area has figured as an Accumulation Region at Bear Market Lows for LTC twice in LTC’s history already.
In forming the 2019 and 2020 Accumulation ranges, LTC developed a multi-year Higher Low trendline (black) within this green demand area.
For a few months, LTC managed to hold that trendline - however, the most recent Monthly Close has occurred below the Higher Low.
Which now means that this trendline could act as a resistance.
I have long argued that this Higher Low may not hold and LTC could see a retrace of up to -93% in this Bear Market, to hit the lows of this green Accumulation Range.
And since LTC is setting itself up, at least technically, for bearish continuation to the downside - this scenario still seems to be in play.
Granted, this downside doesn’t have to occur - but Altcoins tend to retrace at least -90% in Bear Markets and many Altcoins simply haven’t retraced that minimum yet, including LTC.
After all, in the previous Bear Market lows, LTC touched the very bottom of the green Accumulation Range.
Could the same occur this time around?
If LTC can’t reclaim this Higher Low as support and muster a noticeable reaction, then LTC will at least get closer towards the bottom of this green accumulation area.
From the point of view of history, anything within this green area has been a region that has offered long-term investors high ROI - anything lower is a bonus for bargain hunters.
Neo - NEO/USD
In the previous cycle, NEO retraced -97%.
In this cycle, NEO retraced -94%.
And so just from this simple analysis, we can assume there is scope for additional downside.
Technically, NEO has formed a base at the green level, consolidating at this level for multiple months, years even before beginning a new macro uptrend.
NEO this time around hasn’t yet reached that level; it is possible still to do so.
And should NEO reach the green level then that would be a -95% retrace in this cycle, which still allows for downside volatility of some sort, probably below the green level.
Losing the green level would be disastrous for NEO as NEO would plummet into the next available support which is the blue level which denotes the -99% retracement mark.
From what I’ve seen across other Altcoins that have revisited their historical Accumulation Areas from previous cycles, it doesn’t look likely at this time that NEO will lose its green level as support, should it indeed get there.
But this is how other Altcoins in their Accumulation Areas can inform coins like NEO.
If for instance LTC holds its Accumulation Area, then NEO ought to as well; if LTC and other similar Altcoins in their ARs breakdown, then that would also inform NEO’s fate as well.