NEAR, ATOM, DOT: Wyckoff Patterns with Explosive Bull Market Long-Term Potential

by

Shopping for Altcoins?

As a seasoned researcher with over a decade of experience in the crypto market, I can confidently say that the current altcoin landscape presents a rare and exciting opportunity. Having weathered numerous bull and bear cycles, I’ve learned to spot the telltale signs of an imminent altcoin season, and right now, it feels like we’re on the cusp of one.

Bitcoin (BTC/USDT) is again approaching the $100K mark, yet it’s not solely drawing attention this time around. Ethereum has stirred from its slumber, indicating the much-anticipated onset of altcoin season. In essence, the main point here is that shrewd investors are already strategically positioning themselves in altcoins, exhibiting distinct accumulation trends, prepared to navigate the upcoming surge during this bull market.

Three notable altcoins – NEAR Protocol (NEAR/USDT), Cosmos (ATOM/USDT), and Polkadot (DOT/USDT) – are displaying strong investment opportunities, based on Wyckoff accumulation strategies. Although each chart has its unique narrative, a consistent theme emerges: these assets aren’t just about short-term technical excellence; they represent long-term earning potential in an altcoin market where the significant bull rally is yet to fully materialize.

1. NEAR Protocol: A Masterclass in Strength

The chart for NEAR exhibits an almost perfect example of a Wyckoff accumulation pattern, characterized by a well-defined Spring and substantial advancement into the Signs of Strength (SOS) stage. Given its robust momentum, NEAR stands out as the frontrunner among altcoins, primed for a significant surge.

Key Wyckoff Characteristics

At $3.50 (indicated on the graph): This represents a textbook liquidity event below resistance that caught short sellers before swiftly reversing.

Bullish Volume Dynamics

• The Second Attempt at $5.25 by NEAR Triggered Substantial Buying Activities: The spikes in the green volume bars suggest a high level of institutional interest, indicating robust demand.

 

End-of-Cycle Targets

If NEAR dips below $6.49 (its current resistance level), a potential breakout might lead us to short-term goals of around $9 and above $10. In the long run, if the bullish trend continues as anticipated, NEAR could potentially reach between $15 and $18, which aligns with Fibonacci extensions and patterns observed in past altcoin cycles.

2. Cosmos (ATOM): The Patient Bull

In a more leisurely and deliberate manner, Cosmos follows the pattern of Wyckoff accumulation. The upturn commenced at $3.60, signaling the beginning of recovery, but the advancement has been gradual, building a robust structure for potential long-term growth.

Key Wyckoff Characteristics

Price Drop and Rebound: A drop to $3.60 was followed by an upward move reclaiming the 200-day Moving Average at $4.75, which suggests that buying activity had been taking place (indicated on the lower left of the chart).

Volume and Demand

• Gradual Build-up Trend (for Steady Accumulation): Unlike NEAR, ATOM’s trading pattern suggests persistent buying activity over an extended period, indicating a measured institutional investment approach.

 

End-of-Cycle Targets

If ATOM surpasses $6.40, it paves the way for potential growth towards $8.80 (a long-standing resistance level as indicated on the graph). Should it exceed this point, ATOM may continue to climb, reaching its yearly high of $14.50 and potentially extending even further to between $20–$25 by the close of this bull market. This potential growth is in line with ATOM’s historical price movements during peak market cycles.

3. Polkadot (DOT): The Sleeper Giant

At a quick look, DOT’s Wyckoff pattern might not stand out, but closer inspection uncovers a robust accumulation framework. The increase at $3.90, coupled with substantial trading volume and later re-establishing $4.75, seems to indicate its next step is imminent.

Key Wyckoff Characteristics

• A surge in Spring activity and increased volume suggested robust buying interest, particularly around $3.90 (as seen on the chart).

Volume and Moving Averages

• The 200-day Moving Average (MA) of DOT has surpassed the threshold and is currently at a stable position. A reversal near $5.80 could signal a strengthening bullish trend (as suggested in the chart).

 

End-of-Cycle Targets

If the price of $5.80 in DOT is convincingly breached, it could potentially reach $9 (a significant Fibonacci extension) and even touch its yearly high of $12. Looking ahead, should altcoins fully harness the energy of a bull market, DOT has the possibility of surging towards $18-$22.

Confluences and Key Similarities

Regardless of their distinct characteristics, NEAR, ATOM, and DOT all possess shared traits that qualify them as strong choices for long-term investment:

Wyckoff Phases: Each of the three assets is either finishing or almost done with the Wyckoff accumulation phase, suggesting they’re ready for powerful surges.

4. End-of-Cycle Bull Market Perspective

As altcoins enter the expansionary stage of their market cycle, the growth prospects are significant. Here’s a possible prediction for where these digital assets might end up by the conclusion of this cycle:

Approximately between $15 and $18, fueled by swift amassing and burst momentum. (For NEAR)

 

Final Thoughts

Bitcoin may be stealing the headlines, but the real opportunities lie in altcoins like NEAR, ATOM, and DOT. These assets combine the clarity of Wyckoff accumulation with powerful technical confluences, making them high-conviction plays for the long-term.

Regardless if you’re a trader or an investor, it’s high time to get ready. The altcoin market appears to be gearing up for a bull run, and those who take swift action are likely to reap significant benefits.

Read More

2024-11-22 06:30