The cryptocurrency market is showing signs of a strong altcoin season, with investors accumulating their chosen tokens. According to Dropstab data, currently 59 altcoins are showing accumulation signals.
During the accumulation phase, trading volume surges and prices remain stable within a specific range for a long time. This often results in failed attempts to break through in either direction. However, new signals are beginning to indicate potential direction.
BeInCrypto analyzed three tokens from the Dropstab chart showing strong accumulation signals this week.
Pepe (PEPE)
PEPE's price is currently at $0.00001257, positioned above the critical support level of $0.00001216. This altcoin recently broke below the $0.00001389 support, offsetting some of its early month gains. These price movements suggest that PEPE may continue to experience short-term volatility.
Over the past 9 days, PEPE has been in an accumulation phase, indicating that investors are considering it as an altcoin to buy. While there may be slight price fluctuations, a significant decline is unlikely.
If PEPE can rebound from $0.00001216, it may retest $0.00001389 in the near future.
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However, if PEPE breaks below the current support level of $0.00001216, the price could drop to $0.00001152 or lower. A move below this level indicates additional downward pressure, invalidating the positive outlook and suggesting potential losses for investors.
Convex Finance (CVX)
CVX showed strong momentum last week, increasing almost 21% in the past 24 hours. This accumulation phase indicates that the altcoin is gaining attention in the market and suggests potential further short-term increases.
Currently trading at $5.85, CVX is testing the resistance level of $5.88. The parabolic SAR below the candlestick indicates an upward trend, and if the momentum continues, the price could rise above $6.00.
However, if CVX encounters a downturn, the price could drop to $4.16, offsetting recent gains. Breaking below this support level would invalidate the current positive outlook and suggest additional downside risk for the altcoin.
Tezos (XTZ)
XTZ is currently trading at $0.89, positioned above the key support level of $0.87 over the past two days. This stability is attributed to the accumulation phase observed over the past 4 days, suggesting that the altcoin is preparing for additional upward momentum.
The 50-day and 200-day moving averages are approaching a golden cross, which could be a positive signal indicating potential further price increases. If the 50-day moving average crosses above the 200-day moving average, XTZ's price is likely to rise above $0.99 and potentially reach $1.08, reinforcing the upward trend.
However, if XTZ fails to maintain the $0.87 support level, the price could drop to $0.76. A decline below this level would invalidate the positive outlook and suggest further potential downside for the cryptocurrency.
