With Bitcoin holding around $120,000 and Ethereum stable near $3,000, the growth momentum has spread to Chinese altcoins.
The crypto index 'Made in China' has increased by nearly 1% in the past 24 hours, with top-performing altcoins like VeChain, Conflux, and Qtum showing strong growth and changes in key indicators on the weekly time frame.
Next, let's take a look at their trends in the third week of July with Bitcoin Magazine.
VeChain (VET)
VeChain, the blockchain platform known for its supply chain traceability and business use cases, is showing signs of a reversal after a week of strong growth.
Currently trading around $0.024, VET – the 'made in China' altcoin from VeChain, is still down nearly 91% from its ATH of $0.282, but it seems buyers are starting to participate.
In the past week, VET has increased by 21.5% and is currently facing immediate resistance at $0.02629. Successfully surpassing this level could open the way to $0.02769, a level where previous bullish attempts have struggled.
However, the more interesting aspect lies in the divergence forming on the chart.
The Relative Strength Index (RSI) is making higher highs, while the price is forming lower highs, a pattern known as bullish divergence. This indicates that although the price has not caught up yet, momentum is gradually shifting in favor of the bulls.
On the downside, $0.02311 is the first important support level. However, the invalidation of this bullish structure begins below $0.02171, where the breakout candle initiated the current bullish trend.
If this altcoin slips below this level, the growth hypothesis may be invalidated, and the bears will regain control.
As long as VET holds above $0.023 and RSI continues to rise, the bullish trend will continue.
Conflux (CFX)
Conflux is one of the most prominent public blockchains in China, designed to support high-speed decentralized applications and regulatory compliance.
The price of CFX has increased by about 35% in the past week, currently trading around $0.1, indicating strong short-term growth momentum. However, the price is still 94% lower than the ATH of $1.70, leaving room for recovery.
On the chart, $0.1042 is the nearest resistance level. A strong breakout above this level could push the altcoin to $0.1233, with very few technical resistance levels in between. This level could serve as momentum if the market's upward trend is maintained.
On the downside, several support levels exist around $0.1008, $0.0913, and $0.0827. But the area below $0.0827 is the crucial zone, where if the structure breaks, it could change the trend direction even in a strong altcoin cycle.
The 20-day EMA (Exponential Moving Average) has recently crossed above the 50-day EMA and is widening, signaling growth.
This is not the typical 50-200 day golden cross, but it still signals an acceleration of the short-term trend. The narrower time frame makes this a quicker reacting indicator, suggesting that short-term sentiment has shifted to a bullish trend.
As long as CFX holds above $0.1008 and the distance between the EMA lines continues to widen, the bulls may still maintain control of the market.
Qtum (QTUM)
Qtum is one of the first hybrid blockchains developed in China, combining Ethereum's system with Bitcoin's UTXO model.
The 'made in China' altcoin, QTUM, once reached an ATH of $106.88, but is currently trading around $2.24, losing nearly 98% of its value since its peak. However, Qtum has climbed 16.8% in the past week, indicating new upward momentum.
With Fibonacci extension levels from $1.73 to $2.382 followed by a retracement to $2.187, several bullish targets have emerged.
Previously, QTUM broke through the immediate resistance at $2.341 but was quickly rejected and is now consolidating just above $2.279, an important horizontal support level.
This trend will remain as long as QTUM holds above the $2.187 retracement level. If the bulls attempt to push the price above the resistance level of $2.341 again with significant trading volume, the next targets will be $2.436 and $2.513.
If the price drops below $2.187, the breakout structure will be invalidated. And if the price slips below $1.728; the overall bullish argument will lose validity.
In summary, QTUM is trying to regain trend strength after several years of underperformance. The technical setup brings hope, but the $2.341 barrier remains a key level that this altcoin needs to surpass to unlock higher targets.