Last updated on January 28th, 2022 at 11:00 am
With the increasing volatility in Bitcoin, the oldest cryptocurrency, traders, and investors are moving towards altcoins to find bullish moves in such gloomy days. In this article, we will look at two such altcoins that may prove extremely bullish in the upcoming weeks and months. The coins are creating a buzz in the market with new investments as the coin prices find support in their technical chart.
1. Polygon
Polygon is a layer 2 protocol designed to increase the transaction speed and reduce the gas fees of the Ethereum blockchain. Part of the buzz it is creating in the market stems from the fact that $189 Million worth of MATIC, the native token of Polygon will be sent to Bitfinex, a crypto exchange to sponsor high rewards staking program.
The process of crypto staking is used to validate transactions on various blockchains and protect the network. The methodology in Polygon is that the customers assign MATIC to validators running nodes and in exchange, they receive rewards similar to interest-paying financial products.
In the program that is being launched in partnership with Bitfinex, users can receive as much as 41% (subject to market conditions) annualized staking rewards for taking part in the brand-new MATIC program. Moreover, the program will only be available for a limited time.
Technical Analysis Of MATIC
The Polygon coin price is traveling in a steady uptrend with a series of new higher highs and higher lows. Moreover, the technical chart shows an ascending trendline is leading the bull run by providing strong support during each correction.
This rising trendline seems highly effective as the price has already obtained multiple support from it. The MATIC/USD pair has recently gone through another correction which brought a 30% discount from the previous high of $2.9. The coin chart shows a bullish engulfing candle at the combined support of $2 horizontal and the rising trendline, suggesting a bullish reversal.
The MATIC coin price trading above the 100 and 200 EMA line, maintains a bullish trend. Moreover, the 100 EMA line also acts as excellent dynamic support. However, on the flipped side, the 20 and 50 EMA stand as potential resistance,
The RSI(47) slope is on the verge of crossing above the 14-SMA line as it approaches the neutral line from below. A bullish crossover from the middle line will provide better confirmation for a bullish reversal.
The traditional pivot level indicates the overhead supply region for MATIC coin is $2.4 and $2.9. Furthermore, the strong demand can be found at $1.7 and $0.96.
If the price manages to sustain above the $2 mark, the crypto traders can expect a target of $2.9(+32%).
2. Secret Network
Secret Network is a blockchain platform with data privacy that is built into smart contracts by default, which allows users to develop and utilize applications that are both permissive and secure. This functionality protects users, secures applications, and unlocks hundreds of never-before-possible use cases for Web3.
Currently, the privacy-focused network brings a new $175 million accelerator pool and a $225 million ecosystem fund on Shockwave, a new initiative to make Secret a key player in Web3.
Secret ecosystem fund will offer long-term strategic and financial support for founders and developers building on the network, according to SCRT Labs, the core team of developers behind the network.
“The primary goal of the ecosystem fund is to ensure that every individual, team and organization building on Secret has a clear path to self-sustainability and support in bringing their products to market,” the Secret Network said.
The accelerator pool is financed by SCRT, the native token used by the network, and is managed through SCRT Labs. The pool will be able to support the use of decentralized finance (DeFi) as well as Non-fungible Tokens (NFTs), metaverses, gaming, and various other types of applications available on the network.
Secret Network also announced that several investment companies have recently purchased “substantial” SCRT token positions such as Alameda, CoinFund, DeFiance, and HashKey.
Technical Analysis Of SCRT
The Secret coin technical chart indicates an overall uptrend. The coin has recently gone through a correction phase which devalued the price by more than 60%. However, the price identified a strong demand from the $125 mark, resulting in an immediate bullish reversal.
The bullish rally initiated during the latter half of December 2021, showed an impressive V-shaped recovery and pumped the coin back to the previous swing high resistance of around $320.
However, for the past few days, the coin chart shows multiple high price rejections at this resistance($320), indicating the presence of intense supply pressure.
The recent price recovery has reclaimed the 20, 50, 100 SMA line of the daily time chart. These SMA lines can provide strong support for any upcoming pullback.
However, the daily-Stochastic RSI showing a bearish crossover among the K and D accentuates price reversal.
The traditional pivot levels providing a remarkable confluence with the known chart levels provide a decent idea for supply regions above the $320. As per these pivot levels, the SCRT price could face strong resistance from the $366, followed by $415.
If the price rejects from the $320 resistance the crypto traders can expect pullback opportunities at $281, $251, and $22, according to the FIbonacci retracement level of 23.6%, 38.2%, and 50% respectively.
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