Bitcoin (BTC) made a strong comeback in July, as we reported on Kriptokoin.com. Also, the sharp recovery in several altcoin projects pushed the Fear and Greed Index to its highest level since April 6th. Senior strategist Mike McGlone emphasized that it could lay the groundwork for Bitcoin to outperform most assets. If Bitcoin can prolong its rally in the short term, could this trigger buying in certain altcoin projects? We examine the charts of the top 4 cryptocurrencies that will outperform in the near term.
The first altcoin on the list: Binance Coin (BNB)
Binance Coin (BNB) pointed to a potential trend change. The up move faces resistance near the psychological level of $300. Besides, it is at the ascending 20-day EMA ($263). The RSI in the positive region shows the path of least resistance to the upside. If buyers push the price above $300, BNB will resume its trend of overhead resistance at $350. Alternatively, if the price drops below $285, the pair will drop to the downtrend line. This level becomes an important support to consider. If the bears sink the price below the 20-day EMA, the pair will drop to the 50-day SMA ($239).
The pair bounced back from the overhead resistance at $300, but the bulls are trying to defend the 20-EMA. This indicates buying at the bottoms. The bulls will again try to push the price above $300. If they succeed, the uptrend continues. This positive view will be invalidated in the short term if the price declines and falls below the 20-EMA. If this happens, the pair will slide to the 50-SMA. Because a break and close below this will open the doors for a drop to $239.
Uniswap (UNI)
Uniswap (UNI) pointed to strong buying on the declines. The up move reached near the psychological resistance of $10 on July 28, when the bears set up a strong defense. Rising moving averages and RSI index in positive territory give buyers an advantage. If the price recovers from $8.11, it will indicate that buyers are trying to turn this level into support. Thus, a strong recovery from $8.11 will open the doors for a retest of $10. The bulls will have to clear this overall hurdle to signal the start of the next leg of the $12 rally. Conversely, if the price drops and breaks below $8.11, the altcoin could drop to the 20-day EMA ($7.48). A break and close below this level will indicate weakening of the bullish momentum.
The 4-hour chart shows the bulls trying to defend the 20-EMA. If the price rises from the current level and rises above $9.18, the pair will challenge the overhead resistance zone between $9.83 and $10. However, if the price drops below the 20-EMA, it will indicate that supply has outstripped demand. The pair will then fall into the zone between $8.11 and the 50-SMA. This is an important zone for the bulls to defend because if they fail to do so, the short-term momentum could turn in the bears’ favour.
Filecoin (FIL)
Filecoin (FIL) broke out sharply, signaling a potential trend change. The RSI indicator has risen to the overbought zone. This is another sign that the downtrend may be coming to an end. The up move will face resistance at the overhead resistance at $9.50. However, if the bulls do not yield more ground above this level, the probability of a breakout increases. However, the altcoin begins its march towards $16. It also acts as a strong resistance again. If the price drops from the current level, it will indicate that the bears are active at higher levels.
The pair gained momentum after climbing above $6.40. The bears tried to stop the upside at $8.89, but the bulls had other plans. They aggressively bought the dip and pushed the price near the stiff overhead resistance at $9.50. If the price drops from the current level, the bulls will attempt to stop the pullback at the 38.2 percent Fibonacci retracement level of $8.04. A strong bounce from this level will increase the likelihood of a break above $9.50. If this happens, the pair could rally to $10.82. This bullish view could be invalidated below $7.70.
Last altcoin on the list: Theta Network (THETA)
Theta Network (THETA) consolidates between $1 and $1.55. If the price rebounds above the moving averages, the bulls will make another attempt to clear the overhead barrier at $1.55. If successful, the altcoin could start a new uptrend. The rally may reach the $2.10 formation target first, and if this level is exceeded, the rally can extend to $2.60. Contrary to this assumption, if the price drops below the moving averages, the bears will try to push the pair to $1. Such a move could indicate that interval-bound action could continue for a few more days.
The 4-hour chart shows that the pair has bounced back from $1.50 and is attempting to recover from the 20-EMA. This indicates that traders can book profits on every small increase. If the price stays below the 20-EMA, the pair will drop to the 50-SMA. This is an important level for the bulls to defend, as a break below it will drop the pair to $1.15. However, if the price bounces back strongly from the moving averages, it will indicate that lower levels are attracting buyers. If the bulls push the price above $1.42, a retest of the $1.50 to $1.55 resistance area is possible.
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