- Support/resistance flips are key indicators that a coin is flipping from bearish to bullish
- Such a move usually precedes higher prices over a period of time
- Plenty of coins are experiencing support/resistance flips already
With the cryptocurrency markets, and especially the alt market, springing to life again this month, thoughts are naturally turning to the next wave of the crypto cycle. Providing Bitcoin plays ball, alts are set to enjoy further upside as they look to regain their valuations from earlier in the year. This has led to plenty of support/resistance flips on alt coins, which are signs that a coin is ready to start making serious moves. Here we look at some examples and what it can lead to.
Support/Resistance Flips Already Happening
Internet Computer (ICP) was massively hyped when it hit Binance in May, which on its own would have only meant one thing – a dump. Throw in the fact that the entire market tanked just after the listing and it’s clear to see why it dropped from $364 to $30 in six weeks. However, as we can now see, a revival is underway:
ICP has turned a crucial band of resistance at $55 into clear support, signalling that it is ready to make some serious gains when the time is right. Having already done a 2x off the bottom, its next stop is another 2x, with self-evident levels all the way back up to its original listing price. If it can make it back there, which is a distinct possibility in an alt season, that would mean a 5x from now. This makes ICP one of our top picks for the next alt season.
Another coin looking to make up previous ground after a Binance listing is Mantra DAO (OM) which attracted some unwanted attention when it listed on Binance in March. A spike up to $0.89 was followed by a collapse down to $0.085 with the rest of the market, but here we see another example of a key resistance being flipped:
With clear resistance levels at which to take profit on the way (and always keep a moonbag!), OM, which hasn’t yet experienced a proper alt season, could find its way back to its prior highs in no time, representing more than a 3x off the bat, after which the moon is the limit.
There are plenty of other examples of alt coins that have performed a similar support/resistance flip in recent weeks, clues that the next bull cycle is on the way. Another recent listing, MASK, has already shown us what such support/resistance flips can lead to:
Of course we can’t hope that every alt coin is going to react in this way to a support/resistance flip, but this chart symbolises the importance of such an event. If you can find coins that have dropped a long way since their April highs, or new coins that haven’t yet enjoyed a bull market, you could well be in for a cracking alt season.