The cryptocurrency market can be wild. Sometimes it is cruel and brings painful losses to coin holders, but the next day comes and rewards those who did not panic-sell. Many digital assets suffered from massive losses on Tuesday, but some of them managed to stage s spectacular comeback. Not only did they fully recovered, but they also gained ground in comparison to Tuesday's opening levels.
We have chosen three altcoins out of top-30 with the most spectacular reversal in the recent 48 hours to find out what is in store for them and if the technical and on-chain metrics support the further price increase.
Stellar lives up to its name
Stellar (XLM) dropped to $0.077 on Tuesday and extended the decline to $0.075 during early Asian hours. However, a strong buying interest clustered around this barrier and triggered a sharp recovery, pushing prices above $0.08. At the time of writing, XLM/USD is changing hands at $0.0805.
On the daily chart, Stellar has reversed from the lower boundary of the bear flag pattern. The next recovery target comes at $0.09, which coincides with the flag's upper boundary. A sustainable move higher will negate the bearish outlook and bring $0.10 into play.
XLM/USD daily chart, Flag formation
(Click on image to enlarge)
A break below $0.076, however, will confirm the downward trend's continuation and increase the chances for a steeper decline towards $0.071. This is the lowest price level recorded since September 4, which is reinforced by the 0.78% Fib.
NEO finds bullish inspiration after the sell-off
NEO/USD bottomed at $3.92 on March 12 at has been recovering ever since. The coin is moving within a long-term ascending channel limited by the $14.50 support on the downside and $26 resistance on the upside. At the time of writing, NEO is changing hands at $21.24. This altcoin has recovered after Tuesday's sell-off to $19.39 to trade at $21.25, at the time of writing.
Despite the recovery, this cryptocurrency is still moving within a consolidation pattern. A sustainable move above the recent high of $23 will help create bullish momentum and bring the above-mentioned channel resistance of $26 into focus.
NEO/USD daily chart, bullish channel
(Click on image to enlarge)
On the downside, the price is supported by the psychological barrier of $20, as all recent attempts to settle below this hurdle have failed. A daily close below it will likely bring more bears into the market, pushing prices to $19 or lower.
LEO is growing like there's no tomorrow
LEO is the native token of cryptocurrency exchange Bitfinex. The altcoin dropped to $1.13 on Tuesday only to recover to $1.18 by press time. The digital asset has been oscillating in a broad range of $1.12-1.29 since late May. The recent sell-off to the lower boundary of the parallel channel was followed by a sharp upswing, adding credibility to its strength.
From the technical point of view, the initial recovery target is created by the daily SMA100 at $1.23. Once it is broken, the price will proceed with the recovery until it bumps into the upper boundary of the channel at $1.29.
LEO/USD daily chart, a wide range
(Click on image to enlarge)
On the downside, $1.12 has been tested on several occasions since May, meaning that a daily close below this level will become a strong bearish signal that will open the door for a substantial increase in sell orders. If so, LEO could drop to the next supply barrier at $1.
To conclude: Stellar, NEO, and LEO recovered the losses incurred during the recent sell-off and may continue moving higher within the current ranges. The long-term picture remains uncertain as XLM is stuck in a bear flag pattern, while NEO and LEO are range-bound.
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