Although Bitcoin is struggling to form a bottom, altcoins are on a roll and the current price action could b
Although Bitcoin is struggling to form a bottom, altcoins are on a roll and the current price action could benefit UNI, XLM, THETA and HNT.
The United States equities markets witnessed a sharp comeback last week, led by the Nasdaq Composite which gained 7.5%. The S&P was up about 6.5% for the week while the Dow Jones Industrial Average managed a gain of 5.4%.
Continuing its tight correlation with the equities market, the crypto markets are also attempting a relief rally. Bitcoin (BTC) has seen a modest recovery but some altcoins have risen sharply in the past week. This suggests that investors are taking advantage of the sharp fall in the price to accumulate altcoins at lower levels.
Smaller-sized investors have been using the decline in Bitcoin to build their position to at least one Bitcoin. Glassnode data shows that the number of Bitcoin wallet addresses having more than one Bitcoin rose by 873 between June 15 to June 25.
Could the recovery in Bitcoin and altcoins pick up momentum? Let’s study the charts of the top-5 cryptocurrencies that could charge higher in the short term.
BTC/USDT
Bitcoin’s relief rally is facing stiff resistance near $22,000 as seen from the long wick on the June 26 candlestick. This indicates that the bears are not willing to give up their advantage and are selling on rallies.
The sellers will try to pull the price toward the vital support of $20,000. This is an important level to watch out for because a bounce off it will suggest that bulls are attempting to form a higher low.
That could enhance the prospects of a break above the 20-day exponential moving average ($23,155). If that happens, the BTC/USDT pair could indicate a potential trend change. The bulls will then try to drive the price toward the 50-day simple moving average ($27,424).
On the contrary, if the price turns down and plummets below $20,000, it will suggest that bears remain in control. The sellers will then try to sink the BTC/USDT pair to the crucial level of $17,622.
The failure of the bulls to push the price to the 38.2% Fibonacci retracement level of $23,024 suggests a lack of demand at higher levels. The moving averages have flattened out and the relative strength index (RSI) is just above the midpoint, suggesting a range-bound action in the near term.
If the price slips below the moving averages, the pair could drop to $20,000. A break below this support could signal weakness.
Alternatively, if the price rebounds off the moving averages, it will suggest that bulls are buying on dips. The bulls will then attempt to push the price toward $23,024. If this level is crossed, the next stop could be the 50% retracement level of $24,693.
UNI/USDT
Uniswap (UNI) rebounded sharply from $3.33 on June 18 and has reached the stiff overhead resistance at $6.08. The bears are defending the level aggressively but a minor positive is that the bulls have not given up much ground.
The moving averages are close to completing a bullish crossover and the RSI is in the positive zone, indicating that the path of least resistance is to the upside.
If buyers drive the price above $6.08, the bullish momentum could pick up and the UNI/USDT pair could rally to $8. This level could again act as a stiff hurdle but if bulls overcome it, the next stop could be $10.
On the contrary, if the price turns down from the current level and breaks below the 20-day EMA ($4.90), it will suggest that the trend remains negative and traders are selling near resistance levels. The pair could then decline toward $4.
The bears are attempting to stall the recovery near the overhead resistance at $6.08 but the rising moving averages on the 4-hour chart suggest that bulls have the upper hand in the near term.
If the rebound off the 20-EMA sustains, it could increase the possibility of a break above $6.08. If that happens, the pair could pick up momentum and rally to $6.66 and then to $7.34.
Another possibility is that the pair turns down and breaks below the 20-EMA. In that case, the pair could slide to the 50-SMA. A break below this support could invalidate the bullish view.
XLM/USDT
Stellar (XLM) has been in a strong downtrend but the bulls are attempting to form a bottom near $0.10. The buyers pushed the price above the 20-day EMA ($0.12) on June 24 but could not clear the hurdle at the 50-day SMA ($0.13).
A minor positive is that bulls have not allowed the price to slip back below the 20-day EMA ($0.12). The flattening 20-day EMA and the RSI near the midpoint suggest that bulls are attempting a comeback.
If buyers drive the price above the 50-day SMA, the XLM/USDT pair could attempt a rally to the overhead resistance at $0.15. If this level is cleared, it may…
cointelegraph.com