Crypto strategist and trader Scott Melker says he’s seeing strong bullish reversal signals on four-large cap altcoins as the broader markets flash signs of life after a severe corrective move.
“Heavy, heavy selling here (May 19th). And then the volume decreased after that. price kept going down but volume decreased. Here’s one more little spike (May 23rd) but that was bought up. Like if you saw this on the top with a candle that was reverse this (May 23rd hammer)… you’ll be like, ‘Blow-off top.’ That’s kind of like a blow-off bottom. Last-ditch effort on less volume, moves price less, and reverses up.”
The trader is looking at Ethereum scaling solution Polygon (MATIC), which he says is witnessing massive demand after its correction.
“That’s a mega bullish candle (May 24th), my god… That’s going to close at the highest daily volume on MATIC we’ve seen certainly this year… This is super bullish volume and after [a] reversal candle and engulfing basically all these candles.”
“This did not bounce nearly as much so far but again that’s kind of support. Looks pretty good above $146… This has potential [inverse] head and shoulders vibe going on. In general, Litecoin looks kind of fine above that level.”
The last coin the crypto analyst’s radar is decentralized oracle network Chainlink, which he says is seeing a strong push back from bulls.
“This is a mega candle (May 23rd) on the daily. This is a bullish reversal like you’re seeing on MATIC. Long wick down, bulls push price back up, make this hammer… and then a bullish candle next to it heading up.”
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