Algorand (ALGO) and Dash (DASH) have broken out from diagonal resistance lines, a movement that could trigger a sharp increase in the near future. Dent (DENT) is attempting to break out from its own resistance line.
While the crypto market was mostly dormant during the weekend, these three cryptocurrencies posted significant rates of increase, being labeled as the markets weekend gainers.
Algorand (ALGO) Price Leads Weekend Gainers
The ALGO price has fallen under a descending resistance line since June 25. While doing so, it decreased below the 0.618 Fib retracement support level at $0.11.
The 0.618 Fib level most commonly acts as the bottom if a decrease is corrective. Moreover, its importance is increased since the level also coincides with a horizontal support area.
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However, the ALGO price broke out from the resistance line on August 6 and is now in the process of moving above the $0.11 horizontal area. If it reclaims this level, it will mean that the previous decrease was a deviation.
This would be an extremely bullish sign when combined with the breakout from the resistance line. In that case, the ALGO price could move to the next resistance at $0.13, an increase of 17% measuring from the current level.
However, a decisive close below the $0.11 area will mean that the trend is still bearish and could lead to a 18% drop to $0.09.
DASH Bounces and Breaks Out
The DASH price has decreased under a descending resistance line since July 1. The decrease culminated with a low of $30.35 on August 5.
The price bounced afterwards and broke out from the resistance line the next day. Besides the breakout, the bounce validated the $31 horizontal area as resistance.
If the increase continues as a result of the breakout, the next resistance will be at $35.90, created by the 0.618 Fib retracement resistance level. This will amount to an upward movement of 10%.
However, failure to sustain the breakout could lead to a retest of the $31 horizontal area, which will be expected to provide support. A drop to it will be a decrease of 5%.
DENT Price Attempts to Clear Resistance
The DENT price has fallen under a descending resistance line since May 27. During this time, it has made several attempts at breaking out (red icons). However, they have all been unsuccessful and led to the creation of long upper wicks.
These are considered signs of selling pressure, since buyers were unable to sustain the previous increases.
However, DENT is making another attempt at breaking out. Since lines get weaker each time they are touched, an eventual breakout from the line is expected.
If so, the DENT price can increase by 13% to the next resistance at $0.0009. However, a drop to the $0.0007 area will likely occur if the price gets rejected. This would be a drop of 12%.
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