The crypto market seems to be taking a break from the aggressive buying witnessed in January 2023, causing the majority of major cryptocurrencies to turn sideways. However, this consolidation could recuperate the bullish momentum and offer entry opportunities to sidelined traders. In this article, we’ll analyze some of the best low cap cryptocurrencies that may provide massive gains in 2023.
MultiversX(EGLD)
Source-tradingview
The U-shaped recovery in MultiversX(EGLD) coin price shows the formation of a rounding bottom pattern. Amid this recovery, the coin price rallied 43.5% since January 1st and hit the neckline resistance of $46.8-$46.
Under the influence of this pattern, a bullish breakout from $46.8 resistance will intensify the bullish momentum and push the EGLD prices 36.5% higher to reach the $61.5 target.
However, with the ongoing uncertainty in the market, the coin price shows a power struggle to surpass this barrier. By press time, the MultiversX coin trades at $45.12, and if the overhead selling pressure persists, the prices may consolidate for a few trading sessions before the resumption of the uptrend.
Arweave(AR)
Source- Tradingview
The last three months’ price action in Arweave(AR) coin shows a V-shaped recovery. In theory, this structure formation is a sign of strong confidence and aggressive buying in the market.
Thus, amid the recovery, the AR price has recently given a massive breakout from the monthly resistance of $11.3-$11.1. This breakout should offer additional footing for buyers to prolong the bullish rally.
The altcoin currently trades at the $11.45 mark, and with today’s 4.5% loss, the price retests the $11.3 support. Moreover, the lower price rejection attached to the daily candle indicates the sustainability of the price above $11.3 new support. Thus, with sustained buying, the prices should reach the following targets $12.9, $14.36, or $17.3.
ImmutableX(IMX)
Source- Tradingview
Similar to above mentioned EGLD analysis, the ImmutableX(IMX) coin shows the formation of a rounding bottom pattern with a neckline resistance of $1.2. However, on February 3rd, the coin price gave a bullish breakout from the $0.89 barrier.
This breakout should replenish the bullish momentum and encourage the buyers to continue the path of rounding bottom pattern recovery. The coin price currently trades at $0.93 and shows a retest to the breached resistance.
The long-wick rejection attached to today’s candle indicates the buyers are defending the newly obtained support and aim for a prolonged bullish rally. If the buying pressure persists, the post-retest rally should challenge the $1.2 neckline barrier.
Anyhow, under ideal bullish conditions, the ImmutableX coin may double its market value and reach the $2 mark.
Main content of the article:
Cryptocurrency markets have seen a period of consolidation after the aggressive buying of January 2023. This could provide entry opportunities to sidelined traders. Three low cap cryptocurrencies to watch are MultiversX (EGLD), Arweave (AR) and ImmutableX (IMX). MultiversX and ImmutableX have both formed rounding bottom patterns, with a bullish breakout from the neckline resistance of $46.8 and $1.2 respectively. Arweave has formed a V-shaped recovery, with a bullish breakout from the monthly resistance of $11.3-$11.1. These coins could provide massive gains in 2023 if the buying pressure persists.
