Altcoin Price Action Analysis – Coins That Are At Key Technical Trade Locations, Volatility Expansions Imminent (ETH, LINK, DOT, LTC & XRP)

Aziz Khan Altcoin News PublishedJanuary 24, 2021 | ModifiedJanuary 24, 2021

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Altcoin Price Action Analysis – Coins That Are At Key Technical Trade Locations, Volatility Expansions Imminent (ETH, LINK, DOT, LTC & XRP)

  • Key Daily and Weekly S/R levels to monitor
  • RSI Bullish and Bearish Control Zones indicating strength/ weaknesses
  • Price Discovery Modes with increasing volume nodes

The ALT Coins that will be covered in this article are all at key trade locations where further expansions are highly probable. Having an understanding of price action with a holistic approach will aid in determining a directional bias.

ETH/USDT Daily

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Chart by Tradingview

ETHUSDT on the daily is looking quite bullish with a clear objective of taking out the Local Daily S/R. Exceeding this level will increase the probability of testing the Weekly S/R. Being a highly critical level, an influx in volume must be present as this will indicate a true break backed with momentum.

The lead up is considered quite bullish with consecutive S/R Flips followed by a strong bullish volatility expansion. A bullish order block is evident that has supported price with a strong buy-back. This has allowed price action to maintain a bullish market structure leading up to an all-time high break.

The initial attempt of breaking the Weekly S/R resistance failed with an impulsive sell. A solidified grind backed with increasing volume will greatly surge the probability of entering price discovery. At the time, it will be important to monitor the volume profile. An influx in volume must be above average for a true breakout.

 

LINK/USDT Daily

Chart by Tradingview

 

Observing LINKUSDT, a clear bullish expansion is present on the Daily time-frame where price action of current is in price discovery. Taking out the current swing high will greatly increase the probability of further upside momentum, epically with the current volume profile increasing.

The initial Daily S/R had been respected with a strong bullish volatility expansion that followed suit after a confirmed S/R Flip Retest. This was the tail sign of strength in price action as a volume influx was present. Strong volume influxes are key in determining the strength of price action, evidently being the case.

Price action reaming and respecting current Local S/R zone with multiple candle closes will signpost stored momentum for a bullish bias. This will show that price has been accepted at these higher levels where buyers are willing to step in. A local top will only be probable once there is a valid volume climax, this has not occurred as of yet.

 LINK/USDT Daily RSI

link
Chart by Tradingview

Referring to LINKUSDT’s RSI, as of current, it is trading in its respected bullish control zone. This area has been held for a considerable amount of time, signifying strong strength in price action. Overbought conditions as of current have not been met, thus more upside is probable. If the RSI breaches range mid and enters it bearish control zone, this will imply short term weakness, hinting a local top being set.

DOT/USDT Daily Chart

Chart by Tradingview

Preluding to DOTUSDT’s chart, price action has also put in a very strong bullish volatility expansion leading to an all-time high. Similarly to LINK, reaming above current Local S/R will be indicative of strength in price action. Taking out the immediate high will progress DOT back into price discovery with a further strong expansion being probable.

Initially price action broke Daily S/R with an impulsive move that was backed with increasing volume; this suggested a true break as follow through was evident. The volume profile remained above average with consecutive impulses, especially when the bullish order block was back tested.

As evident, the secondary expansion topped out and established a local top, an impulse sell followed suit however was bought back in a bullish manner. This again is suggestive of strength and that a true top as of current is not time-honoured. A clear volume climax with a blow-off top is resemblance will specify a temporary top in price action.

XRP/USDT Daily Chart

Chart by Tradingview

Now Conferring XRPUSDT’s Daily Chart, price action has confirmed a strong bearish volatility expansion with clear impulse selling. This has shifted the market structure significantly with a clear low being established. On a technically note, any rallies are to be sold into as the market structure is bearish.

The immediate volume profile is declining; currently trading below average with no influxes shows weakness. Any conventions of the Daily and Weekly S/R levels are considered bearish retests until proven. Price action unlike, many other coins, is establishing consecutive lower lows. Maintain this structure with declining volume will greatly increase the probability of a bearish retest before continuation.

XRP/ USDT Daily RSI

Chart by Tradingview

 

Holistically observing the Daily RSI, a clear oscillation is occurring at the bearish control zone. This again is another tail sign of a further downside being probable as oversold conditions have not been met. The momentum is clearly stored with the bearish, a break and change in market structure will be a tail sing of short term reversal.

To conclude, ETH, LINk, DOT and LTC are prone for further expansions in either direction, however with a bullish bias being of a higher probable scenario.  Price action across these coins, being accepted above the Key Daily S/R will greatly increase the probable scenarios of further upside. XRP on the other hand needs a confirmed market structure change for a valid bullish bias. As of current, price action is establishing bearish retests with further downside prospective.

Hope this article helps in making discretional decision,

You sincerely, Coingape.

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Aziz Khan 11 Articles
Aziz is an experienced crypto technical analyst and day trader for the past three years going on four. Being a self-taught trader of 5 + years in this field, he has accomplished top status on Trading-view with daily detailed analysis on trending coins. You can follow Aziz on twitter and TradingView
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