These 3 altcoins are primed to start moving in May - Cryptocurrency

03 May, 2019 | Updated: 03 May, 2019
by David Borman
Price Analysis
These 3 altcoins are primed to start moving in May - Cryptocurrency

As we head into May, it isn't hard to see that crypto seems to be emerging from winter and moving into spring. Multiple coins have already begun to climb upward and away from the lows of the recent months. That being said, not every coin has shown upward traction even if everything is solid with their fundamentals. Here are three coins that have yet to fully embrace a turn around in price action, but investors have every reason to be optimistic about.

Bitcoin Cash (BCH)

Bitcoin Cash probably needs no introduction. Ever since it forked away from Bitcoin in 2017, its very existence has caused a bit of a rift in the cryptocurrency community. Bitcoin Cash represents the portion of the Bitcoin community that wants larger blocks to enable on-chain scaling, as opposed to fixed blocks and second layer solutions.

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Things got more complicated last year when Bitcoin SV (BSV) forked away from Bitcoin Cash. In a nutshell, the proponents of BSV wanted even larger blocks than much of the BCH community, as well as reinstating Bitcoin’s original op_codes that would pave the way for smart contracts. Bitcoin Cash is more focused on staying a fast and secure peer-to-peer cash system.

Without getting into the details, the recent controversy surrounding BSV advocate Craig Wright has caused multiple exchanges to delist the coin. This has seen a shift in the user base seemingly moving back towards Bitcoin Cash. This is what may fuel an upsurge in BCH usage in the coming months, as it is beginning to look unlikely BSV will recover.

Looking to BCH on the daily, it is not hard to see that the coin is currently in a descending channel and has been since the April 1st run up. The last two major green candles represent when first Binance and then Kraken delisted BSV, which was clearly not enough to get BCH escape this channel. Still, the recent golden cross that has formed, combined with the upward pressure coming from the 50 day MA gives a lot of optimism that we will soon break upward.

BCH/USD Chart provided by Tradingview

Bull Scenario: We break upward and move onto test $300, but with minimal resistance here, we could carry on as high as $340.

Bear Scenario: We retest back down to the bottom of this channel, likely in the $220-$230 range.

QTUM

QTUM is looking to be a business-class blockchain solution that has a focus on flexibility and scalability. It is a Proof of Stake coin that supports an application layer separate from the blockchain to allow for easily upgradable smart contracts. It also supports an x86 Virtual Machine which will allow for development in C, C++, Rust, Python and many more common programming languages.

QTUM also has just been accepted as a Google Cloud partner, which will make development on QTUM far more accessible and user friendly, even for less technical users. The combination of an innovative platform, an active community and a partnership with Google Cloud all make QTUM a definite one to watch.

Read more: Qtum partners with Google Cloud, price up 8%

Looking at the 4 hour chart for QTUM, we see the obvious surge from the recent Google Cloud news, and it appears that the coin is currently dipping just below support at $2.70. There is a safety net below with the 50 MA aligning with some historical support at $2.50, and if we can get back above $2.80 we may have a good shot at $3.00.

QTUM/USD Chart provided by Tradingview

Moving to the daily, the real potential for the coin can be seen when we zoom out. How the coin does in the next few days is less important than seeing how much upside potential this coin still has. Despite solid fundamentals and news, QTUM hasn't really gotten much traction getting out of crypto winter. This means there is still time to get in for maximum profit, however this coin could be a slow and steady climb so don't go looking for a "get rich quick" trade.

QTUM/USD Chart provided by Tradingview

Bull Scenario: We manage to rally back above $2.80 and carry on to test $3, though there is some resistance at $2.90 as well.

Bear Scenario: We continue to break down and likely catch support at $2.50.

Cosmos (ATOM)

Cosmos has some things in common with QTUM, in that it aims to solve problems with scalability and accessibility. It has been referred to as the “world wide web of blockchains,” in that it offers the tools for any developer to create their own custom chain while still being able to interact with any other blockchain, including other platforms like Bitcoin and Ethereum. This aims to create a sort of blockchain ecosystem, in which not only can anyone build their own chain, but tokens from existing chains can still be used across any network.

What is giving Cosmos a recent push is that it has only in the last couple of weeks been getting listed on major exchanges. First was Kraken, but Binance wasn’t far behind, not to mention Bittrex and Poloniex. By getting almost simultaneously listed across so many popular exchanges, the coin has seen a nice steady growth in its price. Given the ambitious nature of the project, this coin should be a solid performer as we head into the next bull season.

Due to the short listing history, there isn't too much to say in terms of technicals, but here on the 4 hour chart we can see how the coin quickly found its way into an ascending wedge pattern and is currently retesting resistance that has formed at $5. With no historical action to compare to, the best bet is that there will be some resistance above us at $5.50. If we should fall, there is some support, as well as the 4 hour 50 MA, coming in at about $3.75.

ATOM/USD Chart provided by Tradingview

Bull Scenario: We test again on $5 and push through, which should send us up at least to $5.50, if not $6.

Bear Scenario: We break below the ascending support and dip to most likely $3.75.

While there is no guarantee that any of these coins will take off, all three are nicely positioned for upside. All have solid fundamentals, communities and recent news that puts things in their favor. Combined with the fact that none of these coins has begun to take off yet in what seems to be that start of a new bull season, and you have a recipe for, hopefully, maximum profits. Will these coins come through for us? Stick with Chepicap for any and all updates!

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