We start with our macro analysis for the weekly time frame. This is where the key components of technical analysis and indicators find their combined path.
These will be compared with UTKs’ direct competitors, including COTI and REQ. Macro Analysis determines which asset has the best prospects for high time frames that apply to longer-term holding periods.
Starting out with UTK/USD, we can see a very steep and high rise in the chart. While everything was moving, UTK was over performing against the strong market. The retrace right now can be seen as a retrace into the previous area of resistance, and in a technical sense, would be called a support and resistance flip, which is usually a bullish sign.
In addition to this, we have the Fibonacci levels on the chart, which are showing UTKs’ daily open of this day above the 61.8% level.
Looking at the technical indicators, one can see that the MKAST Index is high at 11 /15 points and still above its ALMA. This is so far a bullish sign for a possible continuation to the upside. Yet, with the index being so high and relatively still high during the retrace, we could expect some more downside or further re-test of a breakout.
The low volume candles below the Volume MA show and confirm that the recent move on UTK is just a retrace and not a new developing downtrend.
Furthermore, UTK has touched the MKAST LenLen Ribbon with few wicks and seeing the reaction right now. Anything above the ribbon can be considered as a bullish sign.
Let's continue with COTI. When we look at the COTI/USD, we are seeing a relatively new chart but with enough retraces and key-levels to analyze it. COTI has been steadily rising since April this year, yet has not been over or outperforming the market as UTK did. Yet, it is essential to mention that COTI is increasing steadily and moving to the upside strongly while having healthy re-tests of previous breakout areas. In general, this is a healthy environment, but it is relatively slow compared to the whole market.
When we take a look on the indicators, we can see the MKAST index being significantly lower at 5/15 points. This is not confluent with the steadily rising chart, where one would be expecting the index to have a similar rise.
Nevertheless, the volume on COTI is remarkable and stronger than its moving average. This is showing a lot of people trading and with it more confluence for the moves and reactions. This could be the case because it is a relatively fresh pair, and the high volume can even become a double-edged sword if COTI does not perform well enough.
Finally, we are taking a closer look at REQ. As many already can see the apparent differences, we will elaborate on these more.
REQ is clearly below resistance, and even though almost all trading pairs in the market were able to break resistance in this overly well-performing market, REQ had some big moves, yet never broke resistance, which is quite disappointing, and this shows with the strength of the rejection. The rejection and retrace are significant and not just a simple re-test of an area of a breakout.
Continuing with the technical indicators, we can clearly see that the retrace's volume shows strong spikes inn sell-volume, which is showing a significant retrace and the investors' willingness to sell this asset.
Furthermore, the MKAST index is at 7/15 points, and only one out of the mention 3 pairs below its ALMA. This is simply showing a loss of strength and continuously down-trending indicators. The fact that REQ is even below the MKAST LenLen Ribbon is the "cherry on top." Losing key-levels, losing support, loosing on strength.
The only thing that gives a glance of hope for REQ is the 61.8% Fibonacci level and the potential of a bounce there. Should this not happen, REQ will be in huge trouble.
The comparison between the three competitors draws an obvious line.
UTK is leading the strong and developing project with a prospect and the ability to outperform the market. Obviously, it comes with volatility and retraces, just as any other coin does. This though, should not be a scare-factor for any longer-term positions.
Next in line is COTI. The relatively fresh and newly mainstream project with a slow but a very safe and healthy performance. Things are moving slow, so is COTI. When the market is performing well, it will too, but not as much as UTK. Yet when the market is retracing, the levels and support levels are obvious.
Finally, REQ. This project has failed in delivering the performance many investors were looking for and, therefore, has experienced a powerful rejection. This rejection is something to fight and to hold for. It should not crash to oblivion, but the community and investors and REQ supporters will have to show their genuine support sooner rather than later.
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