Bitcoin breaking $26,500 may draw buyers to TON, XLM, XMR, MKR
In the ever-evolving landscape of cryptocurrency trading, Bitcoin (BTC) has maintained a steady yet narrow range throughout this week. Notably, it is poised to establish the third consecutive Doji candlestick pattern on the weekly chart. This development comes at a time when the cryptocurrency market is facing a notable lack of support from the United States equities markets, which concluded the week on a rather pessimistic note. Specifically, the S&P 500 Index saw a decline of 1.3%, while the Nasdaq experienced a more substantial drop of 1.9%.
As Bitcoin grapples with its own weaknesses, its influence has extended to other cryptocurrencies, resulting in a collective downturn. A multitude of altcoins are currently testing multi-week lows, signaling that the broader crypto market is firmly entrenched in a bearish trend. This unfavorable market environment poses challenges for short-term traders seeking bullish opportunities, as sustained rallies have become increasingly rare. However, this could be an opportune moment for long-term investors to consider constructing a diversified portfolio.
In a recent report by Amberdata, a noteworthy trend has emerged, with 24% of asset management firms appointing senior executives who are exclusively dedicated to the implementation of digital strategies. Furthermore, a substantial 13% of firms have plans to adopt digital assets strategies in the near future. This signifies a profound commitment to the execution of digital strategies within these firms, with an added vote of confidence from senior management.
The question looming in the minds of many investors is whether Bitcoin will break free from its current trading range and potentially stimulate renewed buying interest in altcoins. To gain insights into this query, let’s delve into the charts of the top five cryptocurrencies that exhibit promise in the short term.
Analysis of Bitcoin’s Price Movements
For the past few days, Bitcoin has found itself hovering near the $26,000 mark, showcasing a rather intriguing tug-of-war between bullish and bearish forces.
The picture painted by the descending moving averages seems to favor the bears, suggesting their dominance. However, there’s a glimmer of hope for the bulls in the form of positive divergence observed on the relative strength index. Yet, the overall verdict from these indicators remains inconclusive, leaving both sides in a state of uncertainty.
In such a scenario, a cautious approach seems wise. Rather than rushing into significant bets, it’s prudent to watch and wait. The key levels to monitor are clear: a decisive move above $26,500 could embolden the bulls, potentially paving the way for an ascent to the formidable overhead resistance at $28,143. Conversely, a dip below $24,800 could spell trouble, possibly setting the stage for a plunge towards the $20,000 mark.
Zooming in on the 4-hour chart, we find Bitcoin’s price meandering near the moving averages, a sign that neither the bulls nor the bears are showing much enthusiasm. This tight trading range, though, is unlikely to persist indefinitely. It could soon give way to a burst of activity, leading to a range expansion in the coming days.
Should the price manage to surge beyond $26,500, it would signal a shift in favor of the buyers. This could potentially trigger an upward momentum, targeting levels at $27,600 and, eventually, the formidable $28,143 threshold.
However, if the price takes a downturn and breaches the $25,300 mark, selling pressure may intensify, potentially leading the pair to revisit the intraday low from August 17th at $25,166.
Analysis of Toncoin’s Price Trends
Toncoin (TON) has recently experienced a retracement, finding itself nestled around the 20-day exponential moving average (EMA) at approximately $1.69. In the context of an ongoing uptrend, such a correction to the 20-day EMA often presents an enticing opportunity for those seeking low-risk entry points.
The 20-day EMA holds the potential to serve as robust support. A resurgence in price action from this level would signify a shift in sentiment towards the positive side, with traders capitalizing on buying opportunities during dips. Should this scenario materialize, the TON/USDT pair may embark on an initial ascent to approximately $1.89, with the potential for a subsequent rally towards the $2.07 mark.
Conversely, a scenario in which the price continues its descent below the 20-day EMA suggests a potential exodus of bullish positions. This, in turn, could unlock the doors to a potential drop to the $1.53 level, and even further to the 50-day simple moving average (SMA) at around $1.45.
Turning our attention to the 4-hour chart, it becomes evident that bears are actively attempting to breach the immediate support line at $1.72. However, the bulls have thus far managed to hold their ground, creating a somewhat contentious standoff. Notably, the downsloping 20-EMA and the RSI residing in negative territory heighten the risk of a possible downside breakdown.
In the event that the support at $1.72 crumbles, the pair may experience a descent to $1.66, followed by a potential nosedive to the robust support at $1.53. Conversely, if the bulls manage to drive the price above the moving averages, it would signal the initiation of a more robust recovery, potentially targeting levels at $1.90 and, eventually, $2.
Analyzing the Price Trends of Stellar (XLM)
In recent days, Stellar (XLM) has staged an impressive recovery, signaling a determined effort by buyers to reclaim lost ground.
Breaking free from the grip of the 20-day Exponential Moving Average (EMA) at $0.12 on September 4th, the bulls have successfully defended their territory against bearish onslaughts on both September 5th and 6th. This tenacity suggests a clear intent by the bulls to transform the 20-day EMA into a reliable support level.
Currently, the price has reached the 50-day Simple Moving Average (SMA) at $0.13, which is acting as a formidable barrier. However, it’s worth noting that the buyers haven’t conceded much ground, indicating a lack of haste in exiting their positions. If the price manages to surge above the 50-day SMA, it could open the door to further gains, potentially targeting levels at $0.15 and eventually $0.17.
It’s important to recognize that this optimistic scenario could be in jeopardy if the price takes a downturn and falls below the 20-day EMA.
While the bears are striving to curtail the recovery at the overhead resistance of $0.13, the bulls have proven resilient. The rebound from the 20-EMA underscores that lower levels are still alluring to buyers. If the price manages to maintain its position above the overhead resistance, it could set the stage for an upward trajectory towards $0.15.
To thwart such an upswing, the bears must act swiftly to drag the price below the 20-EMA, potentially instigating a more pronounced selling pressure and steering the price towards the 50-SMA.
Examining Monero’s (XMR) Price Trends
In recent days, Monero (XMR) has managed to maintain its grip on the uptrend line support, demonstrating a clear appetite for buying at lower price levels. Currently resting at the crucial juncture of the 20-day Exponential Moving Average (EMA) at $143, all eyes are on this pivotal level.
Should the bulls succeed in propelling the price above the 20-day EMA, it would serve as a signal for a potential sustained recovery. In such a scenario, the XMR/USDT pair could aim for a climb to the 50-day Simple Moving Average (SMA) at $151. However, it’s worth noting that the bears might staunchly defend this battleground. If the bulls prevail, though, the pair could see a surge towards $160.
On the flip side, the bears have their own playbook. Their strategy involves safeguarding the 20-day EMA and orchestrating a retreat below the uptrend line. If they manage to execute this maneuver, it could trigger a cascade of stop losses, potentially leading the pair to the $130 mark.
Turning our attention to the 4-hour chart, we witness the formation of a symmetrical triangle pattern. The horizontal moving averages and the Relative Strength Index (RSI) hovering near the midpoint suggest a lack of a clear advantage for either the bulls or the bears at this juncture.
If the price slips beneath the 50-SMA, it would embolden the bears, potentially guiding the pair towards the support line of the triangle. Conversely, if the price ascends above the 20-EMA, the pair might reach the resistance line. The eventual break above or below the confines of this triangle could serve as a critical signal for the initiation of a discernible trending move.
Analyzing the Price Trends of Maker (MKR)
Maker (MKR) finds itself in a state of uncertainty, firmly wedged between the moving averages, reflecting a conspicuous absence of conviction among both the bullish and bearish camps. However, it’s worth noting a slight glimmer of optimism for the bulls, as the price has managed to maintain its position above the downtrend line.
The 20-day Exponential Moving Average (EMA), currently at $1,119, is on a gradual ascent. Nevertheless, the Relative Strength Index (RSI) loiters near the midpoint, indicative of a dearth in bullish momentum. For a more resolute bullish signal, buyers must propel the price above the 50-day Simple Moving Average (SMA) at $1,157. Such a move could pave the way for an upward trajectory targeting the $1,227 mark.
It’s essential to bear in mind that this bullish outlook could be at risk if the price retreats back into the clutches of the downtrend line. In such an event, the MKR/USDT pair may face a descent towards robust support at $980, a level likely to witness robust buying activity from the bulls.
Taking a closer look at the 4-hour chart, we observe a rather consistent oscillation within the range of $1,083 to $1,170. The relatively flat moving averages and the RSI hovering in the negative territory tilt the scales slightly in favor of the sellers.
On the downside, it’s crucial to monitor key support levels at $1,102 and subsequently $1,083. Conversely, should the price stage a resurgence from its current position and breach the moving averages, it would hint at a potential comeback by the bulls, potentially setting the stage for a rally towards $1,170.
Please be advised that this article does not offer investment advice or recommendations. Engaging in any investment or trading activity carries inherent risks, and readers are encouraged to conduct their independent research when making financial decisions.
