A top analyst is looking at five popular altcoin crypto assets for potential entry points into the market.
In a new video, pseudonymous crypto analyst Altcoin Sherpa says he likes the trading volume around THORChain (RUNE) but plans to wait for a price drop before taking a new position.
“Insane volume coming in. The most volume since October, and really more so since August, when it went on that run from like $3 to $12.
It flipped the 200-day EMA [exponential moving average] and also flipped this SR [support/resistance] level around $6.50 which acted as support for a long time. And it actually broke it on the first go, which is impressive. I think that $8.50 or so should be the next resistance level.
I wouldn’t consider longing at this level. I think it’s better to wait for a pullback. An area that you might want to look for is the high-sixes… RUNE is one where I would consider buying the dip.”
Moving on to Terra (LUNA), a public blockchain protocol that underpins a suite of decentralized stablecoins, the analyst thinks the altcoin looks good both in the near and long term.
“LUNA is one of the few coins that look really bullish on the lower time frame relative to the rest of the market.
It is at an interesting area of resistance though. It hit a potential double top right around this $100 area, it’s kind of a psychological area.”
Terra is trading sideways at time of writing with a value of $88.94.
Next on Sherpa’s watch list is the multi-chain liquidity hub Kyber Network Crystal (KNC). The trader observes that KNC held its own while most of the market consolidated.
“This has been on my radar for a long time. It was going up really strongly when the rest of the market was just dumping. That’s always a sign that something’s really strong…
It is entering a very dangerous area, around $3.50 to $4.
This is a large supply zone which already got tapped back in early 2021.”
At time of writing, Kyber Network Crystal is down a percent to $3.05.
The chart guru next digs into decentralized blockchain indexer The Graph (GRT), noting that its sales volume hasn’t been this high since last October while highlighting $0.28 as an important line to hold for GRT.
“This is a key level, this area of support. It was the last area in early 2021 before it has this big run.
This is [also] where it formed its base all throughout December and January. It reached that area once again with some strong buying coming in.
In the short term, this is a decent [place] to buy the dip.”
Last on the pseudonymous trader’s list is Algorand (ALGO). He thinks the current valuation around the $0.69 level might be a decent entry point after watching ALGO’s price drop over the past couple of months.
“I think this is an interesting area to knife-catch because the risk is pretty set. Any high time frame closes below these lows [around] $0.65, you can probably just cut it.
It looks interesting to me because volatility has really died off. I would imagine a lot of the selling is mostly done, at least in the short term.
I wouldn’t target anything huge, but I think that a 10% move is certainly possible off these lows.”
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Featured Image: Shutterstock/Sylverarts Vectors/Natalia Siiatovskaia