For the week ending August 7, total crypto market cap is on target for the fifth consecutive weekly increase. The current rally has seen the crypto market end a three-month losing streak in July. Meanwhile, analyst Bob Mason announced 4 altcoin projects to watch out for this week. Here are the details…
What happened in the Bitcoin and altcoin market last week?
The bearish sentiment earlier in the week saw its market cap drop to $1,017 billion. Investor fears of the US recession weighed on riskier assets ahead of key US statistics for the week. Fed’s “pigeon” mood in the second quarter was supported by the 75 basis point rate hike and the contraction in the US economy. However, expectations for a recession in the US led to a six-day streak of losses.
Impressive US nonfarm payrolls figures changed the mood as we entered the weekend. In July, non-farm employment increased by 528 thousand, exceeding the forecast of 250 thousand. Recent crypto network news updates have brought several coins back into the spotlight. Ethereum (ETH) Merge updates remain the main focus. On the other hand, other updates highlighted an increase in activity in the digital asset space. Chiliz (CHZ), Flow (FLOW), Optimism (OP) and Yearn Finance (YFI) are among the cryptocurrencies currently trending and enjoying positive price action.
The first altcoin on the analyst’s list: Chiliz (CHZ)
This week, from Monday to Sunday morning, Chiliz (CHZ) is up 18.00 percent to $0.1442. High start to the week. It rallied to $0.1631 on Monday before pulling back. Network news updates delivered the breakout session Monday. The news that Socios.com had invested $100 million to support Barcelona FC’s Web3 goals was key. Scoville testnet launch for Chiliz Chain 2.0 added more support. Investor interest in CHZ may increase in the coming weeks as the European football season continues, according to the analyst.
Looking at the trends, a move to this week’s high at $0.1631 could support a run to the May high at $0.1974. From there, CHZ will have a free run at the March high of $0.3312 to make $0.40 visible. A break below $0.1250 will give the bears a look below $0.10 and the current-year low of $0.0798. Looking at the EMAs and the 4-hour candlestick chart (below), this was a bullish signal. CHZ is currently sitting above the 50-day EMA at $0.1377.
Withdrawn from the 50-day 100-day EMA, the 100-day EMA moved away from the 200-day EMA. Both are seen as bullish CHZ price signals. Avoiding a bearish break at the 50-day EMA will continue to support the uptrend formed after testing the support at the 50-days EMA on July 27. However, a drop in the 50-day EMA could activate the 100-day EMA, currently at $0.1288, and the current week’s low ($0.1214).
Next up for Flow (FLOW)
This week Flow (FLOW) is up 32.12 percent to $2.55. Starting the week on a low, FLOW dropped to $1.81, the lowest level of the week on Tuesday. However, network updates pushed FLOW to Thursday’s high of $3.77 before pulling back. Announcing the introduction of digital collections to showcase NFTs on Instagram, Meta provided support. At the time of writing, FLOW is down 0.78 percent to $2,5500.
Looking at the trends, a move towards this week’s high of $3.77 could support a run to the May high of $5.21. From $5.21, FLOW must hit the April high of $8.17 to bring in $10.00, last visited in December 2021. A drop below $2 will set the July low of $1.37 and the June 18 low of $1.16 into view.
Looking at the EMAs and the 4-hour candlestick chart (below), there was a bullish signal on Sunday. FLOW sits above the 50-day EMA, currently at $2.2599. The 50-days moved away from the 100-days EMA, the 100-days EMA moved away from the 200-days EMA, both are bullish FLOW price signals. Avoiding a drop in the 50-day EMA will continue to support the uptrend formed after the breakout from the 50-day EMA on August 4. However, a drop in the 50-day EMA could raise the 100-day EMA, which is currently below $2.0585 and $2.00. An extended sell would target the 200-day EMA, currently at $1.9, and the current August low at $1.81.
Levels set for optimism
This week, Optimism (OP) is up 22.47 percent to $1.94. A bearish start to the week saw the OP drop to Tuesday’s low of $1.3 before hitting Thursday’s high of $2,238. News from Aave (AAVE) about the launch of the OptimismFND Liquidity Mining Program provided OP price support. The latest network update followed and supported the news of Curve Finance, which has presented a governance proposal for Optimism for 100 million OP tokens to be distributed in the Curve Pool. Last week, the platform also launched Drippie, a new trading system that adds more support.
Looking at the trends, a return to $2.00 could support a break from the weekly high of $2,238 to the $3.00 target. However, market sentiment in the broader crypto market will need to remain bullish for the OP to break the resistance at $2.50. A break below $1.70 will give the bears a peek below $1.50 and the August low of $1,362.
Levels to watch for Yearn Finance
This week, annual finance (YFI) rose 5.51 percent to $11,472. YFI rose 68 percent in the last week of July. A mixed start to the week saw YFI abandon Monday’s gains and drop to Wednesday’s low of $10,382. Supported by the broader crypto market and US economic indicators, YFI hit Friday’s high of $12,323 before easing. He also supported YFI’s planned August launch.
Looking at the trends, an exit from the July high of $14,239 could entitle YFI to freelance at the May high of $18,565. However, YFI needs to return $20,000 to the transaction to avoid a rollback. A pullback below $10,000 will see YFI face heavy selling pressure. Looking at the 4-hour chart and the EMAs, the signal was bullish. YFI has moved away from the 50-day EMA, currently at $10,786.
The 50-day EMA split from the 100-day EMA and the 100-day EMA split from the 200-day EMA, both seen as positive YFI indicators. Further expansion of the 50-day EMA from the 100-day EMA would support a breakout from July’s high of $14,239 to target May’s high of $18,565. However, a drop in the 50-day EMA would reveal the 100-day EMA below $10,000 and currently at $9,692.
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