Analysis
Tezos, IOTA, Compound Price Analysis: 24 May
An altcoin race is well and truly on after buyers provided a fresh round of impetus in the global cryptocurrency market. Altcoins such as Tezos, IOTA, and Compound each saw a jump of over 15% and aimed to flip certain resistance areas to extend their gains.
Tezos [XTZ]
Source: XTZ/USD, TradingView
Tezos’s downfall was cut short at the $2.69-support although a single candlewick did drop as low as $2.42. These levels now represented 3-month lows for XTZ, but the cryptocurrency was quick to catch on to a recovery in the altcoin market. A breakout above the $3.6-resistance would push XTZ towards $4.43 and the 50-SMA (yellow). Gains beyond that would likely rest on strong cues from market leaders BTC and ETH.
The On Balance Volume noted a sharp rise as buying pressure drove prices from $2.69. However, the index had to make lots more headway to recover to levels seen during the first week of May. The MACD’s fast-moving line crossed above the Signal line – indicating some buying resurgence.
IOTA
While IOTA managed to hike slightly above its 20-SMA on the 4-hour chart, selling pressure was almost immediately observed in the market. However, IOTA would make a strong statement if it maintains $1-mark over the coming sessions. This region not only coincided with the 20-SMA on the 4-hour timeframe, but also clashed with the 50-SMA on the hourly chart. Even sideways movement at $1 could enable a bullish comeback over the next few days. If sellers manage to triumph, additional areas of defense would lie at $0.69 and $0.50.
The MACD’s bullish crossover dictated a price hike, but its histogram noted some weakening momentum on the hourly timeframe. Meanwhile, capital inflows remained healthy as the CMF continued to trade above the equilibrium point.
Compound [COMP]
Source: COMP/USD, TradingView
Compound’s press time rise of 18% since yesterday proved that it was no slacker in the altcoin market. While its volumes were shy of $500 million across exchanges, many of them were only buy trades. As COMP approached its first test at the $400-resistance, the focus should largely be on its volumes. An upwards breakout on more trades would likely see COMP trend in a northbound direction during the coming sessions. A best-case scenario could see a 26% price hike towards the $517-resistance over the next few hours.
Bullish momentum backed COMP’s rally, according to the Awesome Oscillator. A move above the half-line would heighten the possibilities of an extended rally. However, the RSI needs to rise above 50-51 to confirm a favorable stance.
