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Rocky road lies ahead, but heres 5 altcoins that still look bullish

AMERICA equities markets plunged on Aug. 26 following Federal Reserve Chair Jerome Powells speech where he reiterated the central banks hawkish stance. Continuing its correlation with the equities market, Bitcoin (BTC) and the cryptocurrency markets also witnessed a sharp selloff on Aug. 26.

Bitcoin has declined about 14% this month, rendering it the worst performance for August since 2015 once the price had dropped 18.67%. Which may be bad news for investors because September includes a dubious record of a 6% average loss since 2013, in accordance with data from CoinGlass.

Crypto market data daily view. Source: Coin360

Although buying in a downtrending market isn’t an excellent strategy, traders will keep a detailed watch on cryptocurrencies which are outperforming the markets because, in the event of any turnaround, they are apt to be the initial off the block. In a bear market, traders ought to be patient because they’re highly more likely to find a lot of opportunities to get following the market stabilizes.

Do you know the critical levels to view on Bitcoin? If it stages a turnaround, do you know the cryptocurrencies that could outperform for a while? Lets study 5 cryptocurrencies trying strong on the charts.

BTC/USDT

A weak rebound off a solid support indicates that bulls are hesitant to aggressively buy at the particular level. The bulls successfully defended the support line for a number of days but cannot push the purchase price above the 20-day exponential moving average ($21,806). This shows too little demand at higher levels.

BTC/USDT daily chart. Source: TradingView

Bears pounced upon the chance and pulled the purchase price below the ascending channel on Aug. 26. The 20-day EMA is sloping down and the RSI is close to the oversold zone, indicating that bears are firmly in the drivers seat.

The BTC/USDT pair could drop to the strong support zone between $18,910 and $18,626. If the purchase price rebounds off this zone, the bulls will attempt to push the purchase price above the 50-day simple moving average ($22,340). Should they manage to do this, the pair could rise to $25,211.

Conversely, if the purchase price breaks below $18,626, the pair could retest the June 18 intraday low at $17,622. The bears will need to sink the purchase price below this level to signal the resumption of the downtrend.

BTC/USDT 4-hour chart. Source: TradingView

The downsloping moving averages on the 4-hour chart indicate that bears come in command however the positive divergence on the relative strength index (RSI) shows that the sell pressure could possibly be reducing.

The initial sign of strength is a go above the 20-EMA. If that occurs, the pair could rise to the 50-SMA. A rest above this level could signal that the correction could be over.

On the other hand, if the purchase price breaks below $19,800, the selling could grab momentum and the pair may plummet to the $18,910 to $18,626 zone.

MATIC/USDT

Polygon (MATIC) has rebounded off its strong support, which ultimately shows that bulls are defending the particular level aggressively. This escalates the probability of the range-bound action continuing for some more days. That’s among the known reasons for concentrating on this altcoin.

MATIC/USDT daily chart. Source: TradingView

The bulls are trying to push the purchase price above the moving averages. Should they can pull it off, it’ll claim that the MATIC/USDT pair could attempt a rally to the overhead resistance at $1.05. This level could attract strong selling by the bears.

Alternatively, if the purchase price turns down from the moving averages, it’ll claim that bears are available on rallies. The bears will try to sink the purchase price below the key support at $0.75. Should they succeed, the pair could decline to $0.63.

MATIC/USDT 4-hour chart. Source: TradingView

The bulls have pushed the purchase price above the moving averages, that is the initial indication that the selling pressure could be reducing. Another positive sign is that the RSI has made a confident divergence, an indicator that the bears could be losing their grip.

The buyers will attempt to push the purchase price above the overhead resistance at $0.84. Should they succeed, the pair could rally to $0.91 which might again become a solid resistance. To invalidate this positive view, the bears will need to sink the purchase price below $0.75.

ATOM/USDT

Cosmos (ATOM) has been selected since it is trading above the 50-day SMA ($10.58) and is close to the psychological support at $10.

ATOM/USDT daily chart. Source: TradingView

The bulls are anticipated to guard the zone between $10 and the 50-day SMA aggressively. If the purchase price rebounds off this zone and rises above the 20-day EMA ($11.39), it’ll indicate that the selling pressure could be reducing.

The ATOM/USDT pair could then rise to the overhead resistance at $12.50 and later to $13.45. A rest above this level could claim that the downtrend could be over.

Unlike this assumption, if the purchase price turns down and slips below the support zone, it might take up a deeper correction. The pair could then decline to $8.50.

ATOM/USDT 4-hour chart. Source: TradingView

The 20-EMA has rejected on the 4-hour chart and the RSI is in the negative territory, indicating that bears have the edge in the near term. The sellers will need to sink and sustain the purchase price below the uptrend line to challenge the psychological support at $10.

Conversely, if the purchase price rebounds off the uptrend line, it’ll claim that bulls are purchasing the dips to the level because they did on previous occasions. The buyers will need to push the purchase price above the moving averages to open the doors for a possible rally to $12.50.

Related: Bitcoin threatens 20-month low monthly close with BTC price under $20K

XMR/USDT

Monero (XMR) has managed to get to the list since it is holding above its immediate support at $142. This shows that lower levels are attracting buyers.

XMR/USDT daily chart. Source: TradingView

If bulls drive the purchase price above the 20-day EMA ($153), it’ll claim that the correction could be over. The XMR/USDT pair could grab momentum if bulls drive the purchase price above the overhead resistance at $158. If that occurs, the pair could rally to $174. The bulls will need to clear this hurdle to signal the resumption of the up-move.

This positive view could invalidate in the near term if the purchase price turns down and breaks below the strong support at $142. If that occurs, the pair could slide to $132 and later to $117. The downsloping 20-day EMA and the RSI in the negative territory indicate that bears have hook edge.

XMR/USDT 4-hour chart. Source: TradingView

The buyers are trying to push the purchase price above the 20-EMA. Should they manage to do this, the pair could rise to the 50-SMA, which might again become a stiff resistance. If bulls overcome this barrier, the pair could rise to $158. A rest and close above this resistance will suggest a big change in the short-term trend.

Conversely, if the purchase price turns down from the 20-EMA, it’ll claim that bears are available on minor rallies. The pair could then decline to the strong support at $142. If this support cracks, it’ll suggest the beginning of a deeper correction.

CHZ/USDT

Chiliz (CHZ) has found a location in this list for the 3rd consecutive week. That’s because, even with the recent correction, it remains within an uptrend.

CHZ/USDT daily chart. Source: TradingView

Buyers pushed the purchase price above the overhead resistance of $0.26 on Aug. 23 and Aug. 24 however they cannot sustain the bigger levels as seen from the long wicks on the candlesticks. This might have tempted the short-term traders to book profits. That pulled the purchase price right down to the breakout degree of $0.20, that is right above the 20-day EMA ($0.20).

The bulls purchased this drop and so are wanting to resume the up-move toward the overhead resistance at $0.26. The bulls will need to clear this hurdle to open the doors for a possible rally to $0.33.

The rising moving averages suggest advantage to buyers however the negative divergence on the RSI indicates that the bullish momentum could be weakening. If the purchase price turns down and breaks below the 20-day EMA, the benefit will submit favor of the bears. The pair could then decline to the 50-day SMA ($0.15).

CHZ/USDT 4-hour chart. Source: TradingView

The 20-EMA on the 4-hour chart is flattening out and the RSI has been oscillating close to the midpoint, indicating a balance between buyers and sellers. This may keep carefully the pair range-bound between $0.20 and $0.26 for quite a while.

Another trending move could start if bulls push and sustain the purchase price above $0.26 or below $0.20. Until then, the bulls will probably choose the dips to the support at $0.20 and sell close to the overhead resistance at $0.26. Trading in the range will probably remain volatile and random.

The views and opinions expressed listed below are solely those of the writer , nor necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you need to conduct your personal research when coming up with a choice.

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