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The cryptocurrency market appears to be taking a break from the aggressive buying that occurred in January 2023, causing the majority of major cryptocurrencies to turn sideways. However, this consolidation could regain upside momentum and provide entry opportunities for sidelined traders. In this article, we will break down some of the best small-cap cryptocurrencies that might offer huge profits in 2023.
The U-shaped recovery in the price of MultiversX(EGLD) coin shows the formation of a rounded bottom pattern. Amid this rally, the coin’s price has risen 43.5% since January 1 and reached the neck resistance of $46.8-46.
Under the influence of this pattern, a bullish breakout from the $46.8 resistance will intensify the bullish momentum and push EGLD prices 36.5% higher to reach the $61.5 target.
However, with the continued uncertainty in the market, the coin’s price is showing a power struggle to overcome this barrier. As of press time, MultiversX coin is trading at $45.12 and if overhead selling pressure continues, prices may consolidate for a few trading sessions before resuming the uptrend.
The action of the last three months in Arweave(AR) coin shows a V-shaped recovery. In theory, this structure formation is a sign of strong confidence and aggressive buying in the market.
So, amid the recovery, the AR price recently gave a huge break from the monthly resistance of $11.3-$11.1. This breakout should provide additional ground for buyers to extend the bullish rally.
The altcoin is currently trading at the $11.45 mark, and with today’s loss of 4.5%, the price is retesting the $11.3 support. In addition, the lower price rejection attached to the daily candle indicates the sustainability of the price above $11.3 new support. So, with sustained buying, prices should reach the following targets of $12.9, $14.36 or $17.3.
Also Read: Explained: What is Physical NFT? and How to sell physical objects as NFTs
Similar to the aforementioned EGLD analysis, ImmutableX(IMX) coin shows the formation of a rounded bottom pattern with necking resistance at $1.2. However, on February 3, the price of the coin led to a bullish exit from the $0.89 barrier.
This breakout should replenish the bullish momentum and encourage buyers to continue the path of the rounding pattern recovery. The coin price is currently trading at $0.93 and shows a retest of the breached resistance.
The long wick rejection attached to today’s candle shows that buyers are defending the recently acquired support and aiming for a prolonged bullish rally. If the buying pressure persists, the rally after the retest should challenge the $1.2 neck barrier.
In any case, under ideal bullish conditions, ImmutableX coin can double its market value and reach the $2 mark.
The content presented may include the personal opinion of the author and is subject to terms of purchase. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.