3 Altcoins Showing Signs of Accumulation This Week

With the crypto market showing strong signs of an upcoming altcoin season, investors are accumulating their chosen tokens. Data from Dropstab currently shows 59 altcoins signaling accumulation.

During the accumulation phase, trading volume surges and price maintains a specific range for an extended period. This often leads to unsuccessful attempts to break out in both directions. However, emerging signals are beginning to indicate a potential direction.

BeInCrypto has analyzed three tokens from the DropsTab chart showing strong accumulation signals this week.

Pepe (PEPE)

PEPE's price is currently at $0.00001257, holding above the critical support level of $0.00001216. This altcoin recently fell below the $0.00001389 support, erasing some of the profits achieved earlier this month. This price action suggests short-term volatility may continue with PEPE.

Over the past nine days, PEPE has been in an accumulation phase, indicating investors view it as an altcoin to buy. Although the price may fluctuate slightly, a significant decline seems unlikely.

If PEPE can bounce from $0.00001216, it could recover and aim to retest the $0.00001389 level in the near future.

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However, if PEPE falls below the current support of $0.00001216, the price could drop to $0.00001152 or lower. A move below this level could indicate continued selling pressure, invalidating the price increase prospects for the token and suggesting potential losses for investors.

Convex Finance (CVX)

CVX has shown strong momentum this week, with nearly a 21% increase in the past 24 hours. This accumulation phase indicates the altcoin is attracting market attention, showing increasing interest and potential for short-term growth.

Currently trading at $5.85, CVX is testing the resistance level of $5.88. The Parabolic SAR below the candles indicates an upward trend, which could push the price above $6.00 if the upward trend continues.

However, if CVX encounters a bearish market condition, the price could drop to $4.16, erasing recent profits. A decline below this support level would invalidate the current price increase argument, signaling potential downside risk for the altcoin.

Tezos (XTZ)

XTZ is currently trading at $0.89, maintaining a position above the critical support level of $0.87 over the past two days. This stability is attributed to an ongoing accumulation phase over the past four days, suggesting the altcoin may be preparing for the next price momentum.

The 50-day and 200-day EMAs are approaching a Golden Cross, a bullish signal that could indicate further price growth. If the 50-day EMA crosses above the 200-day EMA, it could push XTZ's price back above $0.99, potentially reaching $1.08, reinforcing the upward trend.

However, if XTZ fails to maintain the $0.87 support, the price could drop to $0.76. A decline below this level would invalidate the price increase prospects, signaling a potential further decline for this cryptocurrency.