As the Chinese government vows to put the nation at the forefront of blockchain technology, some of the most prominent China-base...
As the Chinese government vows to put the nation at the forefront of blockchain technology, some of the most prominent China-based blockchain projects are skyrocketing. The following technical analysis will evaluate whether NEO, Ontology, and Qtum have the potential for a further advance.
NEO, Ontology, and Qtum technical analysis
A double bottom or “W” pattern appears to be developing across the 1-month chart of NEO, Ontology, and Qtum. This type of technical formation is usually created at the end of a correction, signaling a change in trend and a reversal of momentum from bearish to bullish. If validated, these cryptocurrencies could be on the verge of a major bullish impulse.
NEO’s double bottom pattern estimates that its bullish trend could soon be resumed if it is able to close above $16.60. If successful, this technical formation will be validated signaling a move to $84.50.
On its way up, NEO would have to break through a series of resistance levels that sits at $13, $20, $31, $48.5, and $67. Nevertheless, a spike in the selling pressure behind this cryptocurrency that takes it below $6.5 will invalidate the “W” pattern predicting lower lows.
Along the same lines, Ontology could surge 400 percent if its able to close above $1.53. Moving above this resistance level will confirm the double bottom pattern seen on its 1-month chart. This will imply that ONT could surge to $7.7 in the next few months.
The bullish outlook could be impeded by the resistance levels that sit in between the current price level and the target, including $2.18, $3, $4.5, and $6.45. However, a break below the recent low of $0.56 could invalidate the double bottom sending this crypto down to make a new all-time low.
Finally, Qtum could be preparing for a multi-month upswing that takes it to $22.45. But first, it will have to close above $5. This could be used as a sign of confirmation that the “W” formation that is developing on its monthly chart will be validated.
Although it is too early to determine if the pattern will be confirmed, a series of resistance levels must be broken to increase the probability for a 350 percent price increase. These resistance levels are sitting at $6.5, $8.1, $10.4, $13.3, $16.8.
Like the other two cryptos previously analyzed, if Qtum moves below the recent low of $1.6 it will put an end to the bullish scenario.
Overall sentiment
The country with the biggest population in the planet is integrating blockchain technology. As a result, the overall sentiment of the market is bullish. Especially, the sentiment around some of the top China-based cryptocurrencies. In the last four days, NEO surged 95 percent, Ontology 125 percent, and Qtum 77 percent. Now, if the double bottom pattern seen in the 1-month chart of these cryptos is validated, they could soon reach higher highs.
The post China-based cryptos on the rise: NEO, Ontology, and QTUM technical analysis appeared first on CryptoSlate.
source https://www.tokentalk.co/Cryptoslate/chinabased-cryptos-on-the-rise-neo-ontology-and-qtum-technical-analysis-5db66c71a76ca7d120e8ea23
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