Altcoin Watchlist #158

Hello and welcome back to the Rekt Capital Newsletter

In today’s edition, the following cryptocurrencies will be analysed & discussed:

• Ethena (ENA)
• Cardano (ADA)
• Virtuals Protocol (VIRTUAL)
• Non-Playable Coin (NPC)
• UniSwap (UNI)
• Ethereum (ETH)

But before we dive in, this Friday I’ll chart your Altcoin picks in an exclusive subscriber-only TA newsletter and will cover as many as I can

So if you’d like to have an Altcoin charted, feel free to share max. two TA requests each in the comments below.

I’ll chart the Altcoins that get mentioned and ‘Liked’ the most

Click the button below to leave a comment with your TA request!

Let's dive in to today's Altcoin Market Update.

Ethena – ENA/USD

Earlier this month, Ethena was shaping itself up for a Weekly Double Bottom formation:

Here's today's update:

Since that time, ENA rallied +103%, fully completing its Double Bottom and even breaking out from it, skipping vital reclaims of the orange level altogether.

But now that ENA has broken out from the Double Bottom, price will now try to fully confirm that breakout to follow-through on its Measured Move to the $0.20 resistance (black).

The retest is now progress and ENA will need to successfully reclaim the $0.13 as support to fully confirm the Double Bottom breakout.

It's absolutely imperative this retest is successful because ENA completely skipped through an entire reclaim of its Monthly Range (orange-orange) as well as the post-breakout retest of the top of that Range:

If for whatever reason the blue Weekly top of the Double Bottom formation isn't successful and is in fact turned back into new resistance to fully invalidate the pattern that would be the worse-case scenario for ENA.

But in that event there would be a good chance ENA could try to venture back into the orange-orange Range for a reclaim of that liquidity pool.

Right now, the post-breakout retest of the Weekly Double Bottom is in progress but it's also worth adequately conceptualising the risk in the event of the worse case scenario taking place.

Cardano – ADA/USDT

Back in late June, we spoke about how Cardano had broken down from its Macro Range into a -41% retrace, falling right into an area of historical demand (green).

Here is that analysis, as a preface:

At minimum, the expectation was for some sort of relief on Monthly Close above the green area, with the maximum being the post-breakdown relief rally.

Price indeed Monthly Closed above the green area, enabling a strong Relief Rally to the upside by August 21st:

And here's today's update:

ADA rallied +69% in total from the green region, rallying straight into the blue resistance to complete its post-breakdown relief rally.

At this stage, the move is complete.

Of course, if ADA were to Monthly Close above the blue $0.24 level then price would have a chance to resynchronise with its historical blue-blue Range.

But until that sort of confirmation is in, the blue level will act as resistance and ADA has fully completed its post-breakdown relief rally at +69%.