Top 3 in the First Week of August 2024

The first week of August 2024 began turbulently for the crypto market, causing widespread concern. 

Despite the ill-fated development, a few tokens saw notable gains, particularly as the week drew to a close. This analysis highlights the biggest altcoin gainers of the last days, including Sui (SUI), Zcash (ZEC), and Helium (HNT).

Sui (SUI) Price Heeds Grayscale’s Call

The price of SUI, the native token of the Move-programmed Layer-1 blockchain, registered one of its biggest one-day jumps on August 8. Rallying to $0.83, it ends the first week of August  2024 with a significant 28.77% increase.

SUI’s jaw-dropping growth is connected to a recent Grayscale announcement. On August 7, the crypto asset management firm disclosed that it had added SUI and Bittensor (TAO) to its list of investment trust products.

Before the announcement, SUI’s price was $0.60. Moments later, it experienced a surge in positive comments online, leading the Weighted Sentiment to reach its highest point year-to-date.

The technical perspective shows that SUI experienced a notable 42% price drop before the recent recovery. For instance, on August 5, the price was as low as $0.46. However, the rise above the 20 (blue) and 50 (yellow) EMAs helped validate the bullish trend.

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The Exponential Moving Average (EMA) tracks trend direction over time. If SUI’s price had fallen below the EMAs, the bullish trend would have been uncertain.

Although the price has slightly retraced, the Moving Average Convergence Divergence (MACD) indicates that the uptrend might resume. The MACD measures momentum by analyzing the difference between two moving averages.

If the MACD reading is above the zero line, as it is in SUI’s case, momentum is upward. A negative reading suggests the opposite. If the uptrend continues, SUI could reach $0.90. However, if the token encounters rejection, it might fall to $0.71.

Zcash (ZEC) Capitalizes on the Double-Bottom

Zcash, a decentralized cryptocurrency that allows users to attain a high level of privacy, is second on the list. ZEC joined the list of the biggest altcoin gainers after its price increased by 24.50% in the last seven days.

At press time, ZEC trades at $37.32. According to the daily chart, its price jumped after it appeared to have formed a double bottom. This pattern, which suggests a trend reversal, is characterized by a W-shaped movement where the price rises after hitting two similar lows.

As shown below, ZEC confirmed the bullish reversal by breaking out of the neckline around $32.54. Meanwhile, the Relative Strength Index (RSI), which measures momentum, indicates that the token is overbought, with a reading of 71.28.

Typically, an RSI reading of 30.00 or below indicates an asset is oversold, while readings of 70.00 or above suggest it is overbought. As a result, ZEC’s price could retrace, especially if profit-taking appears.

If this happens, the value could fall to $32.96. However, if buying pressure stays strong, the token’s price might approach $40.

Helium (HNT) Enters the Fold for the Second Consecutive Week

Last week, HNT was one of the biggest altcoin gainers. This week, it is part of the group again, thanks to a 15.60% increase. The token, which is ranked as the 74th most valuable cryptocurrency and trades at $5.88, operates as a Decentralized Physical Infrastructure Network (DePIN) on Solana.

Helium’s upswing last week was followed by a steep decline, but the token quickly recovered, forming a V-shaped pattern that indicates a strong rebound.

Currently, the token trades at $5.90. However, the On Balance Volume (OBV) suggests that the value could be higher. OBV measures whether the volume flowing in and out of a cryptocurrency is positive or negative.

An increase in OBV signals strong buying pressure, while a decrease suggests sellers are in control. For HNT, the rising OBV indicates that buyers are currently driving the market direction.

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If buying pressure continues, HNT may attempt to retest $6.50. However, if selling pressure outweighs buying volume, the token’s price could decrease to $5.73.