The Hong Kong Securities and Futures Commission’s (SFC) decision to allow individual investors to trade in certain cryptocurrencies from June 1 triggered a significant increase in cryptocurrency adoption among market participants. Investors have shown great interest in China-based cryptocurrency projects (Chinese altcoins) before and after this development, hoping that these projects will make significant value increases in the short term. In this context, we have compiled 3 Chinese altcoins whose price charts point to a rise.
Conflux (CFX) Price Analysis: A Retracement Opportunity
On May 29, Conflux broke downward from the flag formation’s resistance trend line, triggering a drop in the CFX price chart and placing the altcoin at risk of deeper correction.
Currently trading at $0.2, CFX could lose about 30% in value with a potential decline to the lower trend line and joint support of $0.175. Famous for triggering significant price rallies upon breaking the resistance trend line (upper trend line), the falling channel formation could propel Conflux’s price to the level of $0.487, if a potential breakout from this formation’s upper trend line occurs.
Neo (NEO) Price Analysis: Breakout Looms
In the past month, NEO has gained 23% value thanks to a V-shaped recovery from the channel formation’s lower trend line. With upcoming buying pressure, the altcoin’s price could rise 8-10% to surpass the $11.37 resistance and break the overall trend line upwards.
This indicates that as long as the price remains above the formation’s lower trend line, NEO will stay in its short-term correction phase. Therefore, investors looking to buy an altcoin can wait for a breakout above the resistance trend line. With a daily candle close above this line, investors could find reliable support for a rally towards the $15.8 peak.
Filecoin (FIL) Price Analysis: Accumulation Before the Big Rally
Filecoin has formed a symmetrical triangle formation due to its sideways movement in the weekly timeframe chart. This formation indicates that the FIL price will move for some time within two converging trend lines. Currently changing hands at $4.6, FIL is not reflecting a trend in either direction with its accumulation within the symmetrical triangle formation.
Investors waiting for high-momentum trading in FIL should await a breakout from the converging trend lines. An upward breakout from the resistance trend line could take the price beyond the $11.40 level, while a downward breakout from the support trend line could push the FIL price below $2.31.
