The altcoin market has seen a blend of gains and losses this week. While some assets have shown weakness, others have managed to post gains and are looking to extend their rallies.
Among the top 100 cryptocurrencies by market capitalization, SATS (1000SATS), Fantom (FTM), and Thorchain (RUNE) have recorded the most notable gains this week.
SATS (1000SATS) Trends Within Bullish Channel
1000SATS, a token created as a tribute to Bitcoin’s pseudonymous creator, Satoshi Nakamoto, currently trades at $0.00029. Over the past week, its value has surged by 20%, making it the top gainer during the period.
A one-day chart analysis shows that 1000SATS traded within an ascending channel, which it broke above on August 12 and 13. This pattern, formed by two upward-sloping parallel lines, is typically a bullish signal, where the upper line represents resistance and the lower line indicates support.
However, the recent price increase has led some 1000SATS holders to sell for profit, causing the token’s price to dip below the channel’s support line. When an asset drops below this level, it indicates that the bulls have failed to maintain support, suggesting a weakening uptrend and increasing selling pressure.
Read more: What Are BRC-20 Tokens? Everything To Know in 2024
If this trend persists, 1000SATS could lose some of its recent gains and drop toward $0.00011. However, if demand picks up and surpasses the sell-offs, the bearish outlook may be invalidated, allowing the token’s price to rise and target resistance at $0.00033.
Fantom (FTM) Sees Surge in Bullish Bias
With a 17% price increase, FTM is the second-highest gainer this week, currently trading at $0.39. The double-digit price surge is driven by growing bullish sentiment among market participants, as reflected in its Elder-Ray Index. On a one-day chart, this indicator has consistently posted positive values since August 14, currently at 0.038.
The Elder-Ray Index gauges market strength or weakness. When its value is above zero, it indicates strong buying pressure, suggesting high demand for the asset and signaling the potential for a continued price rally.
Additionally, FTM’s rising Accumulation/Distribution (A/D) Line reinforces this demand increase. At 251.31 million as of now, the A/D Line has grown by 14% over the past week.
The A/D Line tracks money flow into or out of an asset by comparing the closing price to the high-low range and multiplying it by trading volume. A rising A/D Line indicates ongoing token accumulation, a bullish sign that points to a likely continuation of the uptrend.
Read more: What Is Fantom (FTM)?
FTM’s continued demand can push its price to $0.48, which it last traded at on July 24. However, if the bears re-emerge and selling pressure spikes, FTM’s price may drop to $0.25, a low it last traded at on August 5, during the broader market downturn.
THORChain (RUNE) Climbs to Seven-Day High, But There Is a Catch
RUNE’s price has increased by 16% this week, reaching a seven-day high of $3.90. However, despite this growth, the declining Chaikin Money Flow (CMF) signals a potential reversal.
A bearish divergence occurs when an asset’s price rises while its CMF declines, indicating that the rally is not backed by strong buying pressure. This divergence suggests that a reversal is likely.
Read more: Which Are the Best Altcoins To Invest in August 2024?
Once buyers lose momentum, RUNE could shift into a downtrend, potentially dropping to $2.53 — a 35% decline from its current value. But if liquidity returns to the market, pushing RUNE’s price to $4.64, this bearish outlook would be entirely invalidated.
Disclaimer
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