Top altcoins are on the decline amid a hit to broader market sentiment. However, several low-cap altcoins are attempting to maintain the positive trend and signal a recovery rally as underlying demand surges.
As doubts about the market’s recovery grow, a supply wave for altcoins may be imminent. So, will these low-cap altcoins sustain their recovery or fall sharply in the days ahead?
Low-cap altcoins are recovering: Akash Network (AKT)
Despite the downtrend on the daily chart, AKT price showed a sudden surge in demand. The low-cap altcoin gained 4.45% intraday, challenging the upper trendline.
Trading View
In a broader sense, AKT price formed a falling wedge pattern, where two descending trendlines converged. However, the altcoin initiated a double bottom reversal from the $2.71 support level.
The bullish divergence on the daily RSI line strengthens the possibility of a bullish reversal. However, the death cross on the daily chart warns of a failed breakout, with the 50-day EMA acting as a dynamic resistance.
A bullish breakout can propel AKT’s uptrend above the 50% Fibonacci level at $4.4452.
Binary X
In the 4-hour chart, BNX price action shows a long-term support trendline that has provided multiple bounces. However, the recent reversal towards the support trendline has struggled to find prior demand and warns of a breakdown.
Trading View
Nevertheless, the bullish trend continues to find support at the 50 EMA and the RSI line is above the midline. According to the Fibonacci levels, BNX price has formed a double top correction at $1.51 and is testing the 38.20% Fibonacci level at $1.39.
The altcoin’s rally could surpass the previous peak of $1.71 and reach the 1.618 Fibonacci level, or the psychological mark of $2.