- BMT crypto and EOS showed a strong short-term bullish potential.
- The small size of BMT’s market cap meant it was likely to be more volatile.
Bubblemaps [BMT], the Solana [SOL] based token of the analytics firm Bubblemaps, saw a 124% price rally on the 18th of March, the same day it was listed on Binance.
After reaching the high of $0.325, the BMT crypto has receded by 31.8%.
This might be a “sell the news” type of event, as the price saw double-digit percentage gains on the 17th of March as well. However, the selling pressure might not last long.
The strong uptrend and demand were likely to make only a minor retracement before the next leg higher.
EOS [EOS] was another major winner, gaining 37.87% from Tuesday’s low at $0.487 to the high at $0.67. EOS had a larger market cap, but the two tokens were among the biggest winners of the past 24 hours.
AMBCrypto analyzed their price charts to see what their next trends could be.
BMT crypto, EOS have similarities
Source: BMT/USDT on TradingView
The 2-hour BMT chart showed a strong uptrend in progress. Although the token was retracing at press time, the structure remained bullish.
Moreover, the small market cap of the coin meant any gains made could be quick and explosive.
Investors with high conviction can use the Fibonacci retracement levels plotted in the chart above to bid on the BMT token. The OBV has not sunk noticeably, even though the coin fell below the 38.2% level at $0.235.
Hence, there was a good chance that a recovery would be quick, once the retracement is over.
Source: EOS/USDT on TradingView
The price action of EOS on the 2-hour chart showed strong bullishness. Even though the token has retraced more than 50% of the recent gains, the RSI remained above neutral 50.
The OBV has not plummeted below the recent lows, either. Hence, there was hope that EOS bulls would defend the next retracement levels at $0.558 and $0.527- but this would be a false hope.
Source: EOS/USDT on TradingView
EOS has a strong bearish structure on the 1-day chart. The recent rally drove the price just above the recent lower high at $0.647.
Hence, the move was likely a liquidity grab and a false breakout. It appeared more likely that EOS would continue to trend downward.
Traders must maintain their bearish bias despite the recent gains. On the other hand, a daily session close above $0.647 would flip the structure bullishly and indicate further gains were likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
