Chiliz (CHZ), Filecoin (FIL) and Merit Circle (MC) have also broken above descending resistance lines, which shows that their correction seems to be complete. Meanwhile, Quant (QNT) is close to ending of its correction and is in the middle of a pullback containing wave 4.
Ethereum (ETH)
- Price: $1,553.91
- Market capitalization: $190 billion
- Rating: #2
On September 21 and October 13, ETH price bounced off the $1,270 horizontal support area (green symbol). The second bounce created a very long lower wick, which is considered a sign of buying pressure.
Ethereum price has rallied since then and speeded up its rise on October 23. Two days later, the altcoin broke out above a descending parallel channel that had previously been in place since August 14. A breakout above such long-term structures usually leads to a continuous upward movement for ETH price.
Furthermore, technical analysis indicators support the breakout. The daily RSI has also broken above a descending resistance line (green) and moved above the 50 level. Both are bullish signs.
Now, the main resistance area for ETH price is $1,713. This is the 0.618 Fib retracement resistance level and the horizontal resistance area.
If Ethereum price succeeds in moving above it, the spike could accelerate dramatically, pushing ETH above $2,000.
On the downside, a daily close below the $1,270 support area will invalidate bullish predictions. If that happens, it could mean the altcoin will drop to new yearly lows.
Filecoin (FIL)
- Price: $5.36
- Market Cap: $1.64 billion
- Rating: #35
FIL is also in the top 5 altcoins to watch in November 2022. Filecoin price has been dropping below descending resistance line since Aug 1. The downward movement resulted in a low of $4.73 on October 13th.
Since the beginning of September, the daily RSI has produced a bullish divergence (green line, leading to an upward movement and a bounce above this line on October 22. The coin has been increasing since then.
If the uptrend continues, the main resistance area will be found at $6.50.
There is a remarkable lack of resistance level above the $6.50 area. As a result, if Filecoin price breaks out successfully, it can quickly rally to $11.20.
A drop below $4.73 would negate the validity of the breakout and take the altcoin toward all-time lows.
Chiliz (CHZ)
- Price: $0.20
- Market Cap: $1.21 billion
- Rating: #44
CHZ price has been climbing since creating a long lower wick on October 13, confirming the $0.16 support area. This is both the 0.618 Fib retracement support level and the horizontal support area.
Soon after, Chiliz price broke out above the descending resistance line and hit a high of $0.21.
However, the bullish reversal is yet to be confirmed as the daily RSI has failed to break out of the bearish divergence (green) and stays below 50. Also, the CHZ price has been falling for the past 24 hours.
If the daily RSI breaks out of the bearish divergence and finds support above 50, it will confirm that the correction is complete.
As it is still possible that the drop is only part of a correction, a drop below the June low of $0.081 is required to invalidate the bullish prediction for this altcoin.
Quant (QNT)
- Price: $173.82
- Market Cap: $2.09 billion
- Rating: #32
On October 15, QNT price broke out above an ascending parallel channel and reached a high of $228 two days later.
QNT price has been falling since then and it looks like a pullback containing wave 4.
The most likely level for the correction to complete is near $160 (red circle), which coincides with the midline of the ascending channel. Once the correction is complete, another upward movement that takes the QNT price above $230 is likely to occur. Potential high would be $200 below all-time high
A drop below the wave one high (red line) of $133.30 will invalidate the bullish prediction and suggest that the price will make new lows. In that case, the altcoin could pull back to the $90 level, which is driving the current gains.
Merit Circle (MC)
- Price: $0.76
- Market Cap: $32.71 million
- Rating: #453
Merit Circle is the last in this list. MC price has been falling below descending resistance line since June 6. After daily RSI created a bullish divergence, MC price finally broke out on Oct 23. It then started a very rapid upward movement but failed to sustain and left a long upper wick.
The daily RSI is currently above the 50 level, supporting the continuation of the uptrend.
The nearest resistance area is $1.18. If MC price succeeds in moving above it, it can quickly rally to $1.95 as there is no overhead resistance.
Its second staking version will launch on November 7th, providing two main pools: One staking pool for MC and one MC/ETH pool. The following pool will receive 80% of the liquidity mining reward due to the risk of temporary loss.
However, if the MC drops below the pre-breakout level of $0.57, the breakout will be invalidated. In that case, the altcoin would drop to a new all-time low.
*Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
(Reference: BeInCrypto)
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