With the crypto market exhibiting strong signs of an altcoin season ahead, investors are accumulating their choice of tokens. Dropstab data currently shows 59 altcoins that are flashing the accumulation sign.
During the accumulation phase, trading volumes surge, and the price stays within a specific range for a prolonged time. This often leads to unsuccessful attempts to break out in either direction. However, emerging signals are starting to indicate a potential direction.
BeInCrypto has analysed three such tokens from DropsTab charts that are showing strong accumulation signals this week.
Pepe (PEPE)
PEPE price currently sits at $0.00001257, holding above the crucial support level of $0.00001216. The altcoin recently fell through the $0.00001389 support, wiping out a portion of the gains made earlier this month. This price action suggests that short-term volatility may continue for PEPE.
For the last nine days, PEPE has been in an accumulation phase, which suggests that investors are considering it an altcoin to buy. Although the price is vulnerable to minor fluctuations, a significant decline seems unlikely.
If PEPE manages to bounce off $0.00001216, it could recover and aim for a retest of $0.00001389 in the near future.
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However, if PEPE falls through its current support of $0.00001216, the price could drop further to $0.00001152 or lower. A move below this level could indicate further bearish pressure, invalidating the bullish outlook for the token and suggesting potential losses for investors.
Convex Finance (CVX)
CVX has shown strong momentum in the past week, with a nearly 21% increase in the last 24 hours. This accumulation phase suggests that the altcoin is gaining traction within the market, indicating growing interest and potential for further upward movement in the short term.
Currently trading at $5.85, CVX is testing the resistance level of $5.88. The Parabolic SAR below the candlesticks indicates a bullish trend, which could push the price above $6.00 if the uptrend continues.
However, if CVX encounters bearish market conditions, the price could drop to $4.16, erasing the recent gains. A decline through this support level would invalidate the current bullish thesis, signaling potential further downside risk for the altcoin.
Tezos (XTZ)
XTZ is currently trading at $0.89, maintaining its position above the key support level of $0.87 for the past two days. This stability is attributed to the ongoing accumulation phase observed over the past four days, suggesting that the altcoin may be preparing for further upward momentum.
The 50-day and 200-day EMAs are nearing a Golden Cross, a bullish signal that could indicate further price growth. If the 50-day EMA crosses above the 200-day EMA, it will likely push XTZ’s price back above $0.99, possibly reaching $1.08, reinforcing the upward trend.
However, if XTZ fails to hold the $0.87 support, the price could decline to $0.76. A drop below this level would invalidate the bullish outlook, signaling further potential downside for the cryptocurrency.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
