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If you were exposed to any LINK, AMPL, or FORTH the past couple days, your portfolio is probably looking a little bigger this morning than others. Since the bottom of the sell off, certain alt coins have had absolutely enormous rises off the bottoms to test the top of the price channel on the 2 hour daily 200MA.
Chainlink Makes 99% Move Up
Yup, you read that correctly. Chainlink printed a low on the 23rd of May around $15 per LINK, a monstrous drop off from its all time high that printed at $52 USD per LINK. Since then, LINK has been on an absolute tear, completely reversing out of the bearish pattern and rising up 99% off the lows to a current price just under $35 USD per LINK. Not a bad turnaround for those who bought the dip or were at least exposed to LINK in their portfolios.
This rise has brought Chainlink straight through resistance around $28.5 USD per LINK right up to the 2 hour daily 200 MA trend line at $35. The rise up off the lows has been just as steep as the sell off after the break down below the 200 MA earlier this month.
A sustained break out from this point could point LINK towards the next level on the 4 hour around $38 USD per LINK. This would essentially create a V recovery off the lows and basically pick up where the previous bull market had left off prior to the market crash. More and more this looks to be a massive mid-season shakeout and big money accumulation before the second leg of the bull run begins as we move into the summer of 2021.
AMPL & FORTH Make Massive Moves
FORTH, the governance token for Amplforth, had been trapped under the 200MA trend line for weeks since its launch on multiple platform weeks ago. Last night, FORTH made a massive move up to test the 2 hour moving average trend line that it has been stuck below. Initially it has bounced off this level, as expected after such a rapid move upward. FORTH printed lows well below $15 USD per coin and has since moved up nearly 68% up from those levels since.
If FORTH can continue to break out from here, it is free to run all the way up to $31 USD per FORTH and possibly higher over the short to medium term as the market continues to gain momentum upward.
Amplforth or AMPL, the coveted new rebasing stablecoin has also rocketed off the lows. AMPL bottomed at a crazy low of $0.48 USD per AMPL, staggeringly low off the targeted $1.033 through rebasing that AMPL aims to anchor to. It has since risen by 55% up to a current price just under $0.80 USD per AMPL.
AMPL is currently sitting just under the 2 hour daily moving average. It is already looking to break out from this level which could allow it to run sky high all the way back to the $1 USD mark above the 4 hour 200 MA. The recent trend of negative rebasing has indeed been slowing down, indicating that the market cap is again expanding. Negative rebasing on AMPL peaked currently at over 4.5% and has since been in decline. Should AMPL continue its trajectory up towards the $1 mark again, a fresh round of positive rebasing looks primed for Amplforth moving forward.
Closing
So long as these alt coins are able to break through the 2 hour resistance line and close above it, that would be a fantastic place to safely add to your longs for the next move up to the 4 hour resistance line as the market continues to recover. While the rises up have already been meteoric, there is still more upside as we go. Keep in mind however, that there could most definitely be large back tests coming in the future. After 99%, 67%, and 55% increases respectively, it wouldn't be surprising to see another pullback when the market cools down. To prepare for this, I encourage you to leave a percentage of your portfolio in a stablecoin or take profit above some of these levels so you may re-enter at a lower price point should a correct happen.
This isn't financial advice. While I aim to provide my insight as accurately and bias-free as possible, please do your own due diligence before choosing to invest in anything, including the discussed coins above.
