Here are 3 altcoins that could surge once Bitcoin flips $35K to support

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Bitcoin (BTC) and the wider cryptocurrency market are taking a breather after the May 31 rally. Meanwhile, most high wedges remain severely oversold, with most between 70% and 90% below their all-time highs.

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Total altcoin index capitalization

What is clear is that fear is everywhere and blood is in the water. Risk-on markets worldwide suffer, but it is precisely these kinds of conditions that create opportunities where professional money accumulates and adds to positions.

Let’s take a look at three high heels that could be positioned for a rebound if the broader market enters a new uptrend.

ADA could be installed for an 80% increase

Cardano (ADA) has a significantly bullish update coming very soon. The long-awaited Vasil hard fork, which increases performance and adds further Plutus upgrades, is scheduled for June.

From a price action perspective, ADA is positioned in a strong price range that is likely to support a further improvement that the broader market has experienced. Within the Ichimoku Kinko Hyo system, ADA has maintained a significant gap between the bodies of the past three weekly candlesticks and the Tenkan-Sen.

When the bodies of the candlesticks and the Tenkan-Sen have noticeable gaps, correction often occurs within three to four days. This is because balance is out of sync, the Tenkan-Sen and price action like to come together as much as possible. An average return back to the Tenkan-sen is extremely likely when one strays too far from the other.

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ADA / USD weekly chart Ichimoku Kinko Hyo Source: TradingView

However, if the broader cryptocurrency market experiences a big rebound, an ADA price may shoot past the Tenkan-Sen to test the Kijun-Sen. ADA has not tested the weekly Kijun-Sen since the week of November 8, 2021.

The weekly Kijun-Sen is at $ 1.02 and contains the 2021 volume checkpoint and the 50% Fibonacci retracement of the all-time high to the January 25, 2021 low.

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ADA / USD (Binance) Weekly Chart Source: TradingView

Related: Bitcoin may hit $ 14K in 2022, but buying BTC now “as good as it gets:” Analyst

MATIC targets $ 1

Looking at the Polygon Weekly (MATIC) chart, one can’t help but notice that it looks strikingly similar to ADA. MATIC and ADA both sold out of $ 3 and both are locked in the mid $ 0.50 to mid $ 0.60 price range, but that’s where the similarities mostly end.

Fundamentally, MATIC remains strong. Governments worldwide have tried to limit or ban mining due to excessive energy costs for demonstration work blockchains and MATIC is likely to avoid government scrutiny and attract supporters as a positive example of environmental management.

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Polygon (MATIC) Source: Twitter

Like ADA, MATIC has significant gaps between the bodies of its weekly candlesticks and the Tenkan-Sen. Although, the MATIC gaps are more significant. Likewise, the gap between price and the Kijun-Sen is much more significant.

Within the Ichimoku Kinko Hyo system, there is a maximum average that price will travel away from the Kijun-Sen before experiencing a violent average reversal. For MATIC, that threshold is 63%.

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MATIC / USD weekly chart (Binance) Source: TradingView

Any renewed bullish momentum for Bitcoin is likely to see MATIC lead the heels higher until it reaches the value area of ​​$ 1.00 to $ 1.15 near the weekly Tenkan-Sen.

XLM lags behind the high-end market, but it is known for surprises

Sometimes it’s hard to forget that during the last major bullfight of the COVID crash until November 2021, there were a few major highs that didn’t reach new all-time highs. Stellar (XLM) is one of them. In fact, the last time XLM made a new all-time high was the week of January 8, 2018, almost four and a half years ago!

One thing XLM has that not many other weekly charts have is a very clear falling wedge pattern. Of the standard rectangles and triangular patterns in technical analysis, wedge patterns are the most powerful. What makes its wedge so powerful is the likely lower falsification.

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XLM / USD Weekly Chart (Binance) Source: TradingView

The most likely direction for a falling wedge is higher – but explosions under a falling wedge can give powerful short chances. The typical behavioral analysts and traders expect to see with a failed falling wedge is an immediate and quick sell-off, but so far, bears have been unable or unwilling to do so.

Instead, the weekly chart for XLM shows a very strong probability of falsification. If a bullish momentum returns to the cryptocurrency market, XLM is likely to hit the second peak of the falling wedge near the $ 0.38 value area.

Classical technical analysts believe that techniques guide fundamentals. If this is true, then high heels like XLM, MATIC and ADA could be positioned in very desirable conditions in the event of any new bull run.

However, low risks remain a concern, but they are likely to be extremely limited. If a new uptrend fails to materialize before the end of June, the cryptocurrency market is likely to move sideways until a major break higher or lower occurs in the Fall.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you need to do your own research when deciding.