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Are altcoins forming local bottoms?

Today we will summarize few altcoins and briefly look at various formations and structures these coins are forming. Are they all forming local bottoms?

We have already explained the term local bottom in this analysis. To sum it up, a local bottom is the lowest price level of any asset from the short-term perspective. We will explain this concept more on two altcoins: Solana and Uniswap.

Solana (SOL)

Solana serves as great case study for cryptocurrencies that might be forming a local bottom due to being in a falling wedge formation. This coin has already created a LOW, which, from the standpoint of the falling wedge pattern, is ideal. Falling wedge is a reverse pattern, which means that typically it can be found at the end of bear market or local bottoms.

TradingView Chart

4h chart of Solana, Source: Author’s analysis, tradingview.com

Uniswap (UNI)

Looking at Uniswap, we can see that rather than falling wedge, this coin is creating more of a range. Simply said, this structure has local lows and local highs. This structure is also pretty common for downtrends for accumulation.

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Having in mind that altcoins have been mostly falling in the past months, I see this as a accumulation stage. From the statistical point of view, falling wedge continues to upward movement more often than range, which is more of a 50 – 50 formation. If we adjust for Bitcoin and overall geopolitical situation and macroeconomic conditions, I would say that this can be mostly accumulation stage and one everything improves we could see a bullish move.  

TradingView Chart

4h chart of Uniswap, Source: Author’s analysis, tradingview.com

Several other coins have pretty similar structures. Falling wedges, triangles or ranges are very common in the cryptocurrency world and can help with the trading strategies. Yet, the traders need to be aware of which movement they are trading and based on what rules.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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