In the wake of the recent altcoin crash, many cryptocurrencies are now significantly discounted, presenting appealing opportunities for traders. Let’s dive into the top three undervalued altcoins that have reached crucial support levels and show promising return on investment prospects.
Zilliqa (ZIL) experienced a sharp decline in price amid the increased selling pressure in the crypto market, reaching a monthly low of $0.0155. The long lower price rejection seen in the daily chart suggests that buyers have started accumulating at this support level, indicating a potential bullish reversal. Moreover, the weekly RSI slope shows a slight increase, reflecting an underlying bullish momentum providing additional confidence to buyers. However, the technical chart unveils a downsloping trendline preventing buyers from gaining control over the past ten months. Thus, traders hoping for a safer entry point may want to wait for a breakout above the overhead trendline with the potential to drive the price back to the $0.05 psychological mark.
The Stacks (STX) price witnessed an impressive bull counter-attack on June 10th, featuring a rejection candle with a long tail at the combined support of the ascending trendline and $0.467. This candle points out that buyers were able to recoup most of the day’s losses and are staunchly defending this support level. With a 1.68% intraday loss, the STX price might retest the much-anticipated support to confirm its sustainability at this level. A potential reversal would enable buyers to challenge the overhead trendline, and a breakout above that resistance trendline could potentially signal a trend reversal propelling the Stacks price towards the $1 mark.
The MultiversX (EGLD) price reflects a falling wedge pattern in the daily time chart, a well-known bullish continuation pattern offering long entry opportunities for traders upon a breakout above the overhead trendline. However, due to the recent market downturn, the EGLD price has reached the pattern’s bottom trend. The lower price rejection at this support level, coupled with an oversold signal from the momentum indicator, hints at a possible bullish reversal. This shift would begin the bull cycle within the pattern and could drive the MultiversX coin to the initial target of $40, challenging the overhead trendline.
It is essential to keep in mind that the presented content encompasses the personal opinion of the author and is subject to market conditions. Ensure thorough market research before investing in cryptocurrencies, as the author and the publication do not hold any responsibility for personal financial loss.
Source: Coingape
