The cryptocurrency market can be wild. Sometimes it is cruel and brings painful losses to coin holders, but the next day comes and rewards those who did not panic-sell. Many digital assets suffered from massive losses on Tuesday, but some of them managed to stage s spectacular comeback. Not only did they fully recovered, but they also gained ground in comparison to Tuesday’s opening levels.
We have chosen three altcoins out of top-30 with the most spectacular reversal in the recent 48 hours to find out what is in store for them and if the technical and on-chain metrics support the further price increase.
Stellar (XLM) dropped to $0.077 on Tuesday and extended the decline to $0.075 during early Asian hours; however, a strong buying interest clustered around this barrier triggered a sharp recovery and pushed the price above $0.08. At the time of writing, XLM/USD is changing hands at $0.0805.
On a daily chart, the price has reversed from the lower line of the bearish flag formation. The next recovery target comes at $0.089-$0.09, which coincides with the flag’s upper line. A sustainable move higher will negate the bearish signal bring $0.099-$0.10 into focus.
A break below $0.076-$0.075 will confirm the bearish trend’s continuation and open up the way to $0.071 (the lowest level since September 4, reinforced by 0.78 Fibo for the upside move from June 27 low).
NEO/USD bottomed at $3.92 on March 12 at has been recovering ever since. The coin is moving within a long-term upside channel limited by $14.50 on the downside and $26.0 on the upside. At the time of writing, NEO/USD is changing hands at $21.24. The coin has recovered after Tuesday’s sell-off to $19.39 to trade at $21.25 at the time of writing.
Despite the recovery, the coin is still moving within a consolidation pattern. A sustainable move above the recent recovery high of $23.00 will help create a bullish momentum and bring the above-mentioned channel resistance of $26.00 into focus. Meanwhile, on the downside, the price is supported by the psychological barrier $20.00, as all recent attempts to settle below this level failed. A daily close lower will bring more bears to the market and allow for the sell-off to $19.00.
LEO is a native token of the cryptocurrency exchange Bitfinex. The coin dropped to $1.13 on Tuesday only to recover to $1.18 by press time. The digital asset has been oscillating in a broad range of $1.12-1.29 since the end of May. The recent sell-off to the channel support also resulted in a sharp correction, adding credibility to this barrier.
From the technical point of view, the initial recovery target is created by the daily SMA100 at $1.23. Once it is broken, the price will proceed with the recovery until it bumps into channel resistance at $1.29. On the downside, $1.12 has been tested on several occasions since May, meaning that a daily close below this level will become a strong bullish signal that will open the door for the bearish payers. The next barrier is $1.00.
To conclude: Stellar NEO and LEO recovered the losses incurred during the sell-off and may continue moving higher within the current ranges. The long-term picture remains uncertain as XLP is locked in a bearish flag formation, while NEO and LEO are range-bound.