Sohrab Khawas
Amid the broader market sentiments taking a toll, the top altcoins are rolling down the hill. However, some low-cap altcoins try to maintain a positive trend and tease a recovery rally as the underlying demand spikes up.
With doubts about market recovery increasing, a supply wave could be coming for altcoins. So, will these low-cap altcoins sustain the recovery or take a massive fall in the days ahead?
Low Cap Altcoins Making Recovery: Akash Network (AKT)
Despite a declining trend in the daily trend, the AKT price shows a sudden surge in demand. The 4.45% intraday recovery in the low-cap altcoin challenges the overhead trendline.
In a broader sense, the AKT price forms a falling wedge pattern with two converging declining trendlines. However, the altcoin teases a double bottom reversal from the $2.71 support level.
The bullish divergence in the daily RSI line bolsters the possibility of a bullish reversal. However, the death cross in the daily chart warns of a breakout failure, with the 50D EMA acting as the dynamic resistance.
A bullish breakout can fuel the uptrend in AKT to top the 50% Fibonacci level at the $4.4452 mark.
BinaryX
In the 4H chart, the BNX price action reveals a long-coming support trendline providing multiple bounce-backs. However, the recent reversal to the support trendline struggles to find the previous demand and warns of a breakdown.
Nevertheless, the bullish trend continues to find support at the 50 EMA, and the RSI line is above the halfway line. As per the Fibonacci levels, the correction in BNX price with a double top at $1.51 and tests the 38.20% Fib level at $1.39.
A bounceback in the altcoin could surpass the previous peak at $1.71 to reach the 1.618 Fib level at the $2 psychological mark.
