This weekend, three altcoins to watch today stand out in the market for presenting technical setups that could define their immediate trajectory. According to data analyzed by Aaryamann Shrivastava, the crypto ecosystem faces a divided landscape between renewed bullish momentum and capitulation at lows, forcing investors to take extreme precautions right now.
While some assets manage to decouple from general volatility, others struggle to find a solid floor after drops exceeding 40%. In this context, the divergence between relative strength indicators and price action suggests that a trend change could be brewing effectively, especially in those projects that have reached historical oversold levels.
Bullish divergences and impulsive rallies in Decred and Polygon
Decred (DCR) has surprised traders by executing a forceful bullish expansion, successfully reclaiming the critical $20.22 pivot. This move, characterized by a high-volume impulsive candle, confirms that buyers have regained control of the asset, establishing a rising low structure that points directly toward the technical resistance located at $25.94.
On the other hand, the Polygon (POL) blockchain recorded a new all-time low at $0.0839, experiencing volatility that wiped out much of its weekly value. However, the Chaikin Money Flow indicator shows a significant bullish divergence, suggesting that, despite surface weakness, there is latent demand accumulating the token at deep discount levels.
Will oversold levels stop the bleeding in Optimism?
The situation for Optimism (OP) is particularly alarming for holders, as the asset dropped to $0.1579 during Friday’s trading session. With a cumulative loss nearing 40%, investor confidence has been eroded, raising doubts about current support sustainability levels in the face of persistent and heavy institutional selling pressure.
However, the Money Flow Index (MFI) is in extreme oversold zones, which historically has served as a prelude to significant relief bounces. If demand manages to stabilize at these levels, the asset could attempt a recovery toward $0.1817, effectively invalidating the bearish scenario dominating recent sessions.
As the weekend closes, the ability of these assets to hold their pivotal levels will determine whether we are facing a buying opportunity or a bull trap. Consequently, monitoring volume indicators will be essential, as liquidity will be the determining factor to confirm whether the exhaustion of sellers is real or merely a transitory phase.
