Skip to content

Massive altcoin breakouts with 3x gains already unfolding, says expert

Massive altcoin breakouts with 3x gains already unfolding, says expert

Michaël van de Poppe — CEO and founder of MN Trading — teaches three trading concepts that can be applied to low market-cap cryptocurrencies, as certain altcoins are showing “momentum” with “massive breakouts” on their price charts.

In a post made on September 8, the professional crypto trader explains that “small cap” coins are performing strong bullish movements, breaking out from past price resistances for pumps that are going as high as three times the price (+200%).

Interestingly, van de Poppe used the token Perpetual Protocol (PERP) as an example of a recent massive breakout leading its price from $0.40 on September 5, to as high as $1.20 on September 7. PERP is trading at $1.09, by press time.

PERP, altcoins breakouts example.
PERP 1-week price chart. Source: Finbold
PERP 1-week price chart. Source: Finbold

Perpetual’s token was also used by the trader to set three trading concepts that can be applied to other altcoins that show a similar pattern, as Michaël stressed that current prices for this specific token could have reached a local high, but “that’s something we don’t know.”

However, cryptocurrencies with a larger market cap — Bitcoin (BTC) included — are not following this huge momentum for small-cap cryptos, as in the analysis.

3 trading concepts to trade small-cap altcoins

Michaël van de Poppe explained the following three trading concepts that can be observed during these “upwards runs”. He believes they are simple concepts and trading patterns that will repeat “to more charts in the upcoming weeks”.

  1. Breakout aggressive plays, which you can find in the chart as potential opportunities to trade and take a position from. Breakouts often lead to 10-20% movements here.
  2. S/R Flips of that breakout, which are also marked with green as a potential box and can result into a 10-20% bounce play as well.
  3. Breakdown plays, which is more difficult as the trend remains to be upwards (in this case a short at $1.12 would have been hit, but most likely the TP won’t be hit as a reclaim of $1.12 is invalidation).
— Michaël van de Poppe (@CryptoMichNL)

Basically, the CEO and founder of MN Trading believes that there is an opportunity to profit between 10 to 20% when opening long positions in altcoins before they break past price resistance — which he seems to think is highly likely to happen on small-caps that have not broken out yet.

After the first concept has played out, traders should look for this older resistance to be turned into the current price support, which also creates new opportunities for 10 to 20% profits with probable bounces upwards.

In this context, the last concept to be observed talks about the breakdowns, when these new supports are not respected, but the price trend continues to point upwards. This can create opportunities for traders to open short positions, but with caution, as target prices may not be hit in the case of these being fake breakdowns.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available.

Read Next:

Weekly Finance Digest

Related posts