- While crypto markets are up in recent times, these are points where investors and traders get trapped trying to chase price.
- Technical areas on CAKE, GRT & XRP to find support and targets.
There have been some significant gains across the market in the last few weeks, which for good reasons is getting everyone excited at the prospect of a bull run returning in 2024.
But! While opportunities are flooding back for investors, sometimes these moments can cause more harm than good as punters try to chase the price.
Today, I will share a few recent examples of altcoins that have ‘popped’ and examine their market structure to give some ideas of where an ideal entry may lie – should the bullish tailwinds continue to blow.
CAKE (+78% in the last 7 Days)
PancakeSwap (CAKE) has cleared previous weekly highs, which is an important shift in character. Ideal entry zones may lie at key price levels where an uptrend may form.
Entry Area 1 is a previous weekly high, which is the first significant level to show support for CAKE.
Entry Area 2 is also a possibility. While it could take weeks to develop, the price could retrace back to the origin of the initial breakout before moving higher.
Targets in green above the price are previous monthly support levels, which likely will act as resistance on the way up. These are often structurally significant areas for market players to be taking profits.
Should we make a new low (red box), that would mean these setups are not valid as a new weekly low would not be a characteristic of an uptrend.
GRT (+29% in the last 7 days)
The Graph (GRT) has broken out of a zone of resistance about 3 weeks ago, and now may offer a retracement lower. As labelled in grey for similar reasons as outlined above. Both these price areas offer support-resistance retests.
Targets are again at prior key support levels, likely to act as resistance on the way up.
Stop loss below current lows, as new lows could suggest a bullish trend isn’t likely.
XRP (+13% in the last 7 Days)
And lastly, while not exceeding in gains in the last week, XRP has outpaced many of the top assets. This is likely due to the much-anticipated 9th of November court-ordered mandate between the SEC and Ripple.
Entry Area 1 is a previous level of resistance that could now turn into support. Entry Area 2 is a key weekly area where, if the bulls are present, they will be defending and not allow a new low to form.
Targets are key monthly highs from 2021. Previous monthly highs often are hot areas for traders to take profits and then look for a re-entry if there is continued support.
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