As we reported on cryptokoin.com, Bitcoin (BTC) rebounded from $18,910 last week, indicating that investors can return to risky assets. However, analysts are divided in their views on the recovery in Bitcoin. While some believe the relief rally is a bull trap, others expect the upside to retest the critical resistance at the 200-week moving average ($22,626). Could the recovery in BTC price trigger rallies by affecting altcoin prices this week? We examine potential breakout forecasts and charts for 4 altcoins to watch this week.
The first altcoin on the list: Ethereum (ETH)
Ethereum (ETH) has completed an ascending triangle formation as bulls pushed the price above $1,280 on July 16. The bears are currently trying to push the price below the breakout level and trap the aggressive bulls. The critical level to watch on the downside is $1,280. If the price bounces back from this level, it will suggest that the bulls have turned the $1,280 support. This may increase the chances of a resumption of the upward move. The ETH/USDT pair could then rally to $1,700, where the bears could pose a strong challenge again.
Conversely, if the price drops and breaks below the 20-day EMA ($1,206), it will indicate that the bears are selling in rallies. This could sink the pair towards the support line of the triangle. On the 4-hour chart, the 20-EMA is sloping upwards and the RSI index is close to the overbought zone, suggesting that the bulls have an advantage. If the price rises and rises above $1,423, the pair could gain momentum and rally to $1,550 and then $1,700. Conversely, if the price drops from the current level, the bulls will try to stop the decline at the 20-EMA. This is an important level to watch out for, as a break and close below could sink the pair to the 50-SMA.
Polygon (MATIC)
Polygon (MATIC) completed an ascending triangle pattern when the price broke above the overhead resistance at $0.63 on July 13. This was the first indication of the start of a new uptrend. The moving averages have completed a bullish crossover, indicating that the buyers have the upper hand. However, the price action of the last few days has brought the RSI closer to the overbought zone, suggesting that a minor pullback or consolidation is likely in the near term. The critical level to watch on the downside is $0.63. If the price rebounds from this support, it will indicate that the lower levels have been bought by the bulls. This could increase the likelihood of a resumption of the uptrend.
The MATIC/USDT pair could then rise to the $0.95 pattern target. This positive view could be invalidated if the price declines and falls below the 50-day SMA ($0.54). The recovery broke above the overhead resistance at $0.75 but this pushed the RSI into the overbought zone. This indicates a minor correction or consolidation in the near term. The bears will try to push the price below the 20-EMA. If this happens, the pair could drop to the 50-SMA. Alternatively, if the price bounces back from $0.75 or the 20-EMA, it will indicate that the bulls are in control. This will increase the likelihood of a resumption of the uptrend.
FTX Token (FTT)
The price action of FTX Token (FTT) over the past few days has resulted in the formation of a symmetrical triangle. The moving averages are on the verge of a bullish crossover and the RSI has rallied into the positive territory, suggesting that the buyers have a slight edge. A break of the resistance line of the triangle will indicate that the uncertainty has been resolved in favor of the buyers. This could mark the start of a new uptrend that could rally to $32 and then to the $36.50 formation target. Contrary to this assumption, if the price turns down from the resistance line, the FTT/USDT pair could extend its stay inside the triangle for a few more days.
The 4-hour chart shows that the price has reached the resistance line of the triangle, where the bears are expected to make a strong defense. If the price drops from the current level but bounces back from the 20-EMA, it will indicate that traders are buying on the dips. This can increase the likelihood of a breakout above the triangle. This positive outlook could be invalidated in the short term if the price continues to decline and dips below the 20-EMA. This could push the pair to the 50-SMA and signal that range-bound action could continue for a few more days.
Last altcoin on the list: Ethereum Classic (ETC)
Ethereum Classic (ETC) has emerged from the $12.50 to $18 range where it has been stuck for the past few days. This shows that the bulls are trying to create a double bottom pattern. The 20-day EMA ($15.87) started to rise and the RSI rose close to the overbought zone, showing that the bulls have the upper hand. On the downside, the critical level to watch is $18. If the bulls sustain the price above this support, the ETM/USDT pair could start a walk north towards $23.50 and then towards $25. Contrary to this assumption, if the price drops and falls below 18, the pair could drop to the moving averages. A break below the 20-day EMA could indicate that the bears remain active at higher levels.
The sharp upward move above $18 has pushed the RSI into the overbought zone. This indicates a minor pullback or consolidation in the near term. The bears will try to push the price back below the breakout level, while the bulls will try to defend it. If the price rebounds from $18, it will suggest that the bulls have turned the level to support. This may increase the likelihood of a resumption of the upward move. Alternatively, a break below $18 might strengthen the bears who will try to drag the pair down to $16.
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