Analyst Jason Appel has published an article for altcoins that can be watched in the coming period. The analyst seems hopeful, especially from Binance Coin and Polygon. Here are the details…
Analyst looks at BNB first
There have been a number of headlines over the past few weeks that seem to be bearish for crypto, such as the SEC filing a lawsuit against two of the world’s largest crypto exchanges, Coinbase (COIN) and Binance. Despite the increase in volatility and the drop in both Coinbase share prices and BNB price, both have arrived at the larger support zones and the crypto market as a whole has not really blinked. The analyst used the following statements:
Regarding BNB, the February 2021 breakout marked the start of the typically strongest, most directional part of a trend known as the “heart of the third wave.” Since the May 2021 high, the price has retreated significantly as a percentage, but note the high consolidation on the chart. BNB has pulled back only a tiny fraction of its 3rd wave advance. Price is tied to a range near the upper end of the entire 3rd wave.
Considering the prolonged horizontal movement, there is a slight shift in perspective to consider a higher degree (3) complete. However, that doesn’t change expectations for a very bullish outcome on a multi-year time horizon as BNB remains well above the required Fibonacci support. Unlike Bitcoin, BNB does not show a reassuring pattern to assess a permanent bottom. However, the current move offers a very favorable short-term trade setup, with the possibility of turning into a much higher yield swing trade.
What levels are expected?
The primary perspective at the moment is that the price is still in a corrective pattern and, in this interpretation, the larger graded support is ranged between $100-$120. While this path displayed clearly does not present a very bullish buy and hold outlook for the next few months, there are some individual discrete trading opportunities emerging on the smaller time frame. The analyst says the following:
Regarding BNB, the price is within support for a suitable long entry. Micro support is in the $245-277 region and at the time of this writing, the price is hovering in the middle of this zone at $264 and seems to be preparing for a drop to $250. The upside target for wave (III) in this formation is $400-460, followed by a corrective pullback in wave (iv) followed by another top to complete wave B, $480-575. Short-term prospects remain for a bullish solution from this current retracement unless the price makes a meaningful break below $240. From the final $480-575 region, given the upside corrective formation from 2022 lows, expectations are for another leg down to complete wave (4). Either way, given the short-term setup, BNB offers an interesting trade from a risk/reward perspective with an opportunity to hit all-time highs. However, please be aware of the increased risk due to the SEC litigation.
Among the altcoins in the analyst’s focus is MATIC
Moving on to Polygon (MATIC), on the other hand, of the three altcoins discussed last summer, MATIC did the best with a long shot. Despite MATIC’s major pullback from its February 2023 high, it’s still up over 70% since its launch in July 2022. The price at the February peak was about 200% higher than the price at the time of publication. Unlike BNB, which moved up in a corrective pattern from the low of 2022, MATIC managed to rise to the high of February 2023 in a 5-wave pattern.
According to the analyst, this is a completed wave (4) and indicates that the price has started wave (5) to new all-time highs. In Elliott Wave analysis, the corrective, countertrend, the first 5-wave pattern in the direction of a larger trend that occurs after the completion of a 3-wave pattern indicates an initial move for the next cycle in the trend, in this case bullish. The analyst says the following:
The lower end of the target zone for MATIC is $4.19, which represents the possibility of a weak wave (5). However, (5). If the wave finds support in the $0.54-0.85 standard zone and then continues upwards impulsively, we should keep our attention in the $6.40 to $13 zone. While $13 offers a much larger gain at $4.19, the risk/reward ratio starts to deteriorate as the price moves into the target zone and it is important to practice good risk management.
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