Top 3 China Coins to Watch This Week in July

Introduction

As the broader cryptocurrency market finds its footing, with Bitcoin showing strength and Ethereum maintaining key support levels, a specific narrative is capturing investor attention: China coins. The index tracking these projects has seen a notable uptick, signaling renewed interest. Among the top performers, projects like VeChain (VET), Conflux (CFX), and Qtum (QTUM) are exhibiting compelling technical setups with significant weekly gains. Here’s a detailed breakdown of their market trends as we head into the third week of July.

Key Takeaways

• VeChain (VET): A bullish RSI divergence is forming alongside a 21.5% weekly gain. The critical support level to watch is $0.023.

• Conflux (CFX): Riding a 40% surge fueled by a bullish EMA crossover, CFX is now challenging the key resistance at $0.1042.

• Qtum (QTUM): Testing a key Fibonacci resistance level at $2.341, with a potential path toward $2.513 if bullish momentum is sustained.

Qtum (QTUM)

Qtum is a pioneering hybrid blockchain with deep roots in China, uniquely combining Ethereum's smart contract capabilities with Bitcoin's secure UTXO transaction model.

Once trading at an all-time high of $106.88, QTUM now trades at approximately $2.31, reflecting a 98% decline from its peak. Nevertheless, a recent gain of 16.8% over the last week suggests that momentum is returning. The price is currently consolidating above the horizontal support at $2.279 after briefly testing and being rejected from the $2.341 resistance.

Using a trend-based Fibonacci extension tool, several upside targets have been identified. The key to unlocking them is a sustained break above the immediate resistance at $2.341. If bulls can push through this level with convincing volume, the next targets are projected at $2.436 and then $2.513.

The current bullish structure remains valid as long as QTUM holds above the minor retracement level of $2.187. A drop below this point would invalidate the breakout pattern. A more significant breakdown below $1.728, which was the starting point of the initial impulse move, would nullify the broader bullish outlook.

VeChain (VET)

VeChain, a leading blockchain platform renowned for its applications in supply chain management and enterprise solutions, is showing strong indications of a potential trend reversal.

Currently trading around $0.025, VET is still approximately 91% below its all-time high of $0.282. However, a recent surge of 21.5% over the past week suggests that buying pressure is mounting. The immediate resistance to overcome is at $0.02629. A decisive break above this level could pave the way for a test of $0.02769, a price ceiling that has capped previous rallies.

The most compelling technical signal for VET is a bullish divergence on its chart. While the price has been setting lower highs, the Relative Strength Index (RSI) is simultaneously charting higher highs. This divergence suggests that underlying momentum is shifting in favor of the bulls, even if the price has yet to fully reflect it.

The primary support level to watch is $0.02311. However, a drop below $0.02171—the base of the breakout candle that initiated this move—would invalidate the current bullish structure and could see sellers regain control. As long as VET remains above $0.023 and the RSI continues to climb, the outlook remains constructive.

Conflux (CFX)

Conflux stands out as one of China's most prominent public blockchains, engineered for high-throughput decentralized applications (dApps) while maintaining regulatory compliance.

The CFX token has enjoyed a remarkable 40.2% rally in the past week, with its price currently hovering just above $0.103. Despite this strong short-term performance, CFX is still 94% down from its peak of $1.70, indicating substantial room for potential recovery. The nearest resistance is at $0.1042. A clean breakout here could trigger a move towards $0.1233, as there is little technical resistance in between.

A significant bullish signal is the recent crossover of the 20-day Exponential Moving Average (EMA) above the 50-day EMA. While not the traditional "golden cross" (50/200 EMA), this short-term indicator points to a rapid acceleration in bullish momentum, especially as the gap between the two moving averages widens.

Key support levels are found at $0.1008, $0.0913, and $0.0827. A break below $0.0827 would represent a structural breakdown, invalidating the bullish thesis and potentially reversing the short-term trend. For now, as long as CFX holds above $0.1008 and the EMA crossover remains in effect, the bulls appear to be in control.

Conclusion

The resurgence of interest in China-linked crypto projects presents a compelling narrative for the weeks ahead. VeChain, Conflux, and Qtum are each displaying unique technical signals that warrant close attention. VET's bullish divergence suggests underlying strength, CFX's EMA crossover points to accelerating short-term momentum, and QTUM is battling a key Fibonacci level that could unlock further upside.

However, investors should remain cautious. These technical setups are heavily dependent on the overall market sentiment, which is often dictated by Bitcoin's price action. A broader market downturn could easily invalidate these bullish patterns. As always, this analysis is for informational purposes, and traders should conduct their own research and practice sound risk management.

Frequently Asked Questions

What are "China-linked" or "Chinese coins"?

These terms refer to cryptocurrency projects that either originated in China, have a significant portion of their development team based there, or have strong strategic ties and target markets within the Chinese ecosystem. Examples include NEO, VeChain, and Conflux.

Why are these coins gaining attention now?

Renewed interest often stems from a combination of factors, including positive shifts in the regulatory landscape, project-specific developments (like partnerships or tech upgrades), and narrative-driven trading where investors look for the next sector to outperform.

What is a bullish RSI divergence?

A bullish RSI divergence occurs when the price of an asset makes a new low or a lower high, while the Relative Strength Index (RSI), a momentum indicator, makes a higher low or a higher high. It suggests that bearish momentum is fading and a potential price reversal to the upside could be imminent.