The first week of August 2024 got off to a turbulent start in the cryptocurrency markets, sparking widespread concern.
Despite the unfortunate developments, several tokens showed notable gains, especially towards the end of the week. This analysis highlights the altcoins that have seen the biggest gains over the past few days, including Sui (SUI), Zcash (ZEC), and Helium (HNT).
SUI Price Answers Grayscale’s Call
The price of SUI, the native token of the Move programmed Layer-1 blockchain, saw one of the biggest single-day gains on August 8, rallying to $0.83 and ending the first week of August 2024 with a significant gain of 28.77%.
SUI’s impressive growth is tied to Grayscale’s recent announcement. On August 7, the crypto asset management firm disclosed that it had added SUI and Bittensor (TAO) to its portfolio of investment trust products.
Before the announcement, SUI was priced at $0.60. Shortly after, Weighted Sentiment hit its highest level of the year as positive comments online surged.
From a technical perspective, SUI experienced a 42% price decline before the recent recovery. For example, on August 5, the price dropped to $0.46. However, the bullish trend was confirmed as it rose above the 20 (blue) and 50 (yellow) EMA.
Read more: 10 Best Altcoin Exchanges in 2024
The exponential moving average (EMA) tracks the trend direction over time. If the price of SUI had fallen below the EMA, the bullish trend would have been uncertain.
Although the price has pulled back slightly, the Moving Average Convergence Divergence (MACD) indicates that the uptrend may resume. The MACD measures momentum by analyzing the difference between two moving averages.
If the MACD reading is above the zero line, as in the case of SUI, the momentum is rising. A negative reading suggests the opposite. If the uptrend continues, SUI can reach $0.90. However, if the token encounters a rejection, it can fall to $0.71.
Zcash (ZEC) utilizes a double bottom.
Zcash, a decentralized cryptocurrency that allows users to have a high level of privacy, takes the second spot on the list. ZEC joins the list of the biggest altcoin gainers after its price rose by 24.50% over the past seven days.
At the time of writing, ZEC is trading at $37.32. According to the daily chart, the price surged after what appeared to be a double bottom. This pattern, which suggests a trend reversal, is characterized by a W-shaped move with the price rising after hitting two similar lows.
As shown below, ZEC has confirmed a bullish reversal by breaking the neckline near $32.54. Meanwhile, the Relative Strength Index (RSI), which measures momentum, indicates that the token is overbought, recording a reading of 71.28.
Generally, when the RSI is below 30.00, it indicates that the asset is oversold, and when it is above 70.00, it indicates oversold buying. As a result, the price of ZEC may retreat, especially if profit taking occurs.
If this happens, the value could drop to $32.96. However, if buying pressure remains strong, the token price could approach $40.
Helium (HNT) enters fold for 2nd consecutive week
Last week, HNT was one of the biggest altcoin gainers. This week, it rejoined the group thanks to a 15.60% gain. Ranked as the 74th most valuable cryptocurrency and trading at $5.88, the token operates on Solana as a decentralized physical infrastructure network (DePIN).
Last week, Helium saw an uptrend followed by a steep downtrend, but the token quickly recovered and formed a V-shaped pattern indicating a strong rebound.
The token is currently trading at $5.90, but On Balance Volume (OBV) suggests that the value could be higher. OBV measures whether the volume flowing into and out of a cryptocurrency is positive or negative.
An increase in OBV indicates strong buying pressure, while a decrease suggests that sellers are in control. In the case of HNT, a rise in OBV indicates that buyers are currently leading the market direction.
Read more: What are the best altcoins to invest in August 2024?
If the buying pressure continues, HNT can try $6.50 again. However, if the selling pressure is greater than the buying volume, the token price can drop to $5.73.
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