The recent announcement by the Hong Kong SFC to allow trade in specific cryptocurrencies has sparked considerable interest among market participants and contributed to an uptick in crypto adoption. Notably, traders are showing significant enthusiasm for Chinese-related crypto projects, which are anticipated to surge in the near future. In this article, we’ll delve into some of the top China coins to project their future trends and trading opportunities.
Conflux (CFX) has recently experienced a pullback opportunity, as its coin price witnessed a bearish reversal from the resistance trendline of the flag pattern on May 29th. This reversal initiated another bear cycle within the chart pattern, putting the altcoin at risk of a deeper correction. Currently, the CFX price stands at $0.268, and if the potential downfall materializes, it could tumble 30% to reach the combined support of the lower trendline and $0.175. However, the falling channel pattern is known for its significant price rallies upon breaking its resistance trendline. A potential breakout from the overhead trendline could bolster bullish momentum in the Conflux price, pushing the coin price up to $0.487.
Similarly, Neo (NEO) has been edging close to a breakout, thanks to a V-shaped recovery from the lower trendline of the channel pattern. This recovery has resulted in a 23% surge in the NEO price within a month, and continuous buying could lead the coin price to break the overhead barrier of $11.37. This, in turn, could fuel an additional 8-10% price rally, putting the coin in direct contention with the overhead trendline. However, until the downsloping trendline is breached, the NEO price will remain in its short-term correction phase. Thus, potential buyers should stay cautious and wait for a breakout above the resistance trendline before diving in.
As for Filecoin (FIL), it is currently coiling before an anticipated massive rally. The weekly chart reveals a symmetrical triangle pattern, with the Filecoin price strictly rebounding from two converging trendlines. The FIL price now stands at $4.9 as the consolidation period offers no directional bias from buyers or sellers. Consequently, high-momentum traders should keep an eye on the coin, waiting for the price to break either converging trendline. A potential breakout from the above trendline could lead to prices surging beyond the $1.25 mark.
In summary, the recent developments in the Hong Kong SFC have positively impacted Chinese-related crypto projects like Conflux, Neo, and Filecoin. With potential breakouts on the horizon, traders should closely monitor these coins as they could offer valuable trading opportunities. However, always take precautions and conduct thorough market research before investing in cryptocurrencies, as the markets can be volatile and authors or publications may not be responsible for personal financial losses.
Source: Coingape
