With Bitcoin holding around $120,000 and Ethereum stabilizing near $3,000, growth momentum has spilled over to Chinese altcoins.
The 'Made in China' crypto index has risen nearly 1% in the past 24 hours, with top-performing altcoins like VeChain, Conflux, and Qtum recording strong growth and changes in key indicators on the weekly timeframe.
Next, let's take a look at their trends in the third week of July.
VeChain (VET)
VeChain, a blockchain platform known for its supply chain traceability and business use cases, is showing signs of reversal after a week of strong growth.
Currently trading around $0.024, VET – VeChain's 'made in China' altcoin, 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 risen 21.5% and is currently facing immediate resistance at $0.02629. Successfully breaking above this level could pave 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 starts below $0.02171, the breakout candle that initiated the current uptrend.
If this altcoin slips below this level, the bullish hypothesis may be invalidated and the bears will regain control.
As long as VET stays above $0.023 and the RSI continues to climb higher, the bullish trend will continue.
Conflux (CFX)
Conflux is one of China's most prominent public blockchains, designed to support high-speed decentralized applications and regulatory compliance.
The price of CFX has increased by about 35% over 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 a catalyst if the market's upward momentum is sustained.
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 potentially 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, indicating a bullish signal.
This is not the typical 50-200 day golden cross, but it still signals the acceleration of the short-term trend. The narrower timeframe makes this a quicker reacting indicator, suggesting that short-term sentiment has shifted to bullish.
As long as CFX stays 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 the Ethereum system with Bitcoin's UTXO model.
The 'made in China' altcoin, QTUM, once reached an ATH of $106.88, but it is currently trading around $2.24, losing nearly 98% of its value from the peak. However, Qtum has climbed 16.8% in the past week, showing new upward momentum.
With Fibonacci extension levels from $1.73 to $2.382 and then a retracement to $2.187, many bullish targets have emerged.
Previously, QTUM had surpassed the immediate resistance level at $2.341 but was quickly rejected and is currently consolidating just above $2.279, a significant horizontal support level.
This trend will remain as long as QTUM stays above the retracement level of $2.187. If the bulls attempt to push the price above the resistance level of $2.341 again with high 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 thesis will lose its validity.
In summary, QTUM is trying to regain trend strength after years of underperformance. The technical setup gives hope, but the $2.341 barrier remains a crucial level that this altcoin needs to overcome to unlock higher targets.