During the past week, several altcoins have been creating bullish formations and initiated upward moves afterward, moving toward their previous highs.
Combined with the falling Bitcoin dominance rate, we could see more altcoins beginning to increase rapidly. In this article, we will take a look at two coins that we believe have major potential for gains.
Ravencoin
Cryptocurrency trader @StackinVentures tweeted a Ravencoin price chart while marveling at its future potential for increases. Since the price is at all-time lows, he has posted a long setup that offers an almost 1:20 Risk:Reward ratio. However, the price has not reached the highs of the target of 900 satoshis since 2019, so it might be a slight stretch to state that the upward move will take the price all the way to this target.
https://twitter.com/StackinVentures/status/1247768601626460160
When looking at the daily chart, we can see that the Ravencoin price has been trading inside a descending channel since July 2019. Since the price reached the support line on March 13, it has been generating very significant bullish divergence in the daily RSI.
This suggests that the price is likely to move higher and reach the resistance line at 370 satoshis.
In the short-term, the price is following a descending resistance line. Therefore, the proposed increase could occur as soon as the price breaks out above this line.
Cardano
Well-known trader @TradingTank stated another coin that could increase is ADA, since it has already flipped an important area that previously offered resistance and with it a significant moving average (MA).
$ADA Flipped horizontal support + 200EMA. ✔️ pic.twitter.com/YOjbOdhTrG
— Trading Tank (@TradingTank) April 8, 2020
The long-term outlook for ADA is extremely bullish. The price has reached the 440 satoshi support area for the fifth time. This movement is combined with strong bullish divergence in the weekly RSI. In addition, each time the price has reached this area, it created a long lower wick and moved upward.
Divergence in the RSI of such a high time-frame is not common and very often leads to sustained upward moves.
In the shorter-term, the price has already broken out from a descending resistance line.
Therefore, it seems very likely to increase, at least until it reaches the resistance area at 620 satoshis and possibly higher.
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