Two Small Cap Coins That Can Increase Considerably Over the Coming Weeks

PERL Highlights

• There is support at 400 satoshis.
• There is resistance at 600 satoshis.
• The price is trading inside a short-term ascending channel.

AMB Highlights

• The price has broken out from a 115-day downward trend.
• The price is facing resistance from its 200-day moving average.
• AMB has made a double bottom
• There is resistance at 450 and 1200 satoshis.

Full-time trader @j0hnnyw00 made a tweet that suggests a correlation between the prices of AMB and PERL, stating that he believes AMB will post gains similar to those posted by PERL over the past month.

Do you remember $PERL? I'm pretty sure $AMB is the next PERL
Low cap can become large cap. https://t.co/WrBsJZMAOE

— Johnny Woo | Never DM you for Money (@j0hnnyw00) February 11, 2020

Both these coins have small caps, PERL is ranked #279 by market capitalization while AMB is #584. A rapid price increase for both could cause them to enter the top 100, especially PERL. Let’s take a closer look at both these coins and determine their potential for increases.

PERL

Since the tweet alludes that the AMB price movement will follow that of PERL, we will initially take a look at the price movement for the latter. In the period from January 20 to February 11, the PERL price increased by 155%. The main support area is found at 400 satoshis, which was the breakout level. After the price broke out on February 7, it returned to validate it as support after two days before moving upwards. The main support area is found at 600 satoshis. What is interesting is that there is virtually no resistance above this level, so a successful price breakout could trigger a very rapid upward movement. In the short-term, the PERL price is trading inside an ascending channel. Also, once the price reached the resistance area and line, it created a bearish candlestick with a long upper wick, which suggests that the price will decrease. While the RSI has generated bearish divergence, it has not completed a failure swing top but has created a symmetrical triangle instead. So, we cannot lean on the RSI to call a reversal as of yet. Based on this, the most likely movement is further consolidation inside this channel before the price breaks out, around the same time it breaks out above the 600 satoshi resistance. As for the future movement, it is likely that the price is in the third wave of a five-wave Elliott formation. Based on the length and duration of the waves that have finished until now, the top of the fifth wave could be reached in March near 1100 satoshis, which is more than a 100% increase from the current price. This increase is also supported by the 50- and 100-day moving average (MA) cross. The rate of increase is likely to accelerate once the price breaks out above 600 satoshis.

AMB

On February 1, the AMB price broke out from a descending resistance line in place for 115 days. The price has been increasing since, but briefly stalled once it reached the 200-day MA, which provided resistance to the price during the entire duration of the descending resistance line. So, even though the price has broken out, it still has an important price level left to clear, which is provided by the 200-day MA. The weekly chart reveals two resistance areas, one at 450 and the other at 1200 satoshis. The price has also completed a double bottom since August 2019, while the 450 area acts as the high between the two bottoms. A price movement above this area could greatly accelerate the rate of increase. The RSI suggests that this will occur since it has generated very significant bullish divergence between these two bottoms. Therefore, the AMB price has yet to initiate an upward move, but all the signs that it will do so are there. But, until it breaks out above 450 satoshis, its movement should still be considered as accumulation rather than the beginning of a new upward move.

PERL and AMB Conclusion

Both the PERL and AMB price have the potential for massive increases. However, since PERL has already more than doubled in value, its future price increase potential is lower. For AMB, we could see an increase of up to 1200 satoshis, which is a roughly 450% increase from the current price, while we do not think PERL will increase more than 100%.