While Bitcoin (BTC) is struggling to make a bottom, some altcoin projects are seeking to exit by challenging the bearish momentum in the cryptocurrency markets.
Some altcoin projects have risen sharply as BTC rebounds slightly
As we have reported as Kriptokoin.com, crypto markets, which maintain their tight correlation with the stock market, are also attempting a relief rally. Bitcoin (BTC) has seen a modest recovery, but some altcoin projects have risen sharply over the past week. This shows that investors are taking advantage of the sharp drop in price to accumulate altcoin projects at lower levels. Smaller scale investors are using the drop in Bitcoin to make at least one Bitcoin investment. Glassnode data shows that the number of Bitcoin wallet addresses with multiple Bitcoins increased by 873 between June 15 and June 25.
Bitcoin’s relief rally is facing stiff resistance near $22,000 as seen from the long wick on the June 26 candlestick. This shows that the bears are not willing to give up their advantage and sell in the rallies. Sellers will try to push the price towards the critical support of $20,000. This is an important level to watch out for, as a bounce will indicate that the bulls are attempting to form a higher low. Can the recovery in bitcoin and altcoin projects gain momentum?
Here are the 4 altcoins to watch this week:
Uniswap (UNI)
The first altcoin on the list is Uniswap (UNI). The moving averages are close to completing a bullish crossover and the RSI is in the positive territory, suggesting that the path of least resistance is to the upside. If buyers push the price above $6.08, the bullish momentum could increase and the UNI/USDT pair could rally to $8. This level could act as a tough hurdle again, but if the bulls overcome it, the next stop could be $10. Conversely, if the price drops from the current level and dips below the 20-day EMA ($4.90), it will indicate that the trend remains negative and traders are selling close to the resistance levels. The pair could decline towards $4 later.
The bears are attempting to stop a recovery near the overhead resistance at $6.08, but the ascending moving averages on the 4-hour chart suggest that the bulls have the upper hand in the near term. If the recovery at the 20-EMA continues, a break above $6.08 may increase the chances. If this happens, the pair could gain momentum and rally to $6.66 and then $7.34. Another possibility is for the pair to turn down and fall below the 20-EMA. In this case, the pair may slide to the 50-SMA. A break below this support could invalidate the bullish outlook.
Stellar (XLM)
The positive point for Stellar (XLM) is that the bulls do not allow the price to drop below the 20-day EMA ($0.12). The flattening 20-day EMA and the RSI near the midpoint indicate that the bulls are attempting a reversal. If buyers push the price above the 50-day SMA, the XLM/USDT pair could attempt a rally to the overhead resistance of $0.15. If this level clears, it could signal the start of a new uptrend. This positive view may be invalidated in the short term if the price continues to decline and falls below the 20-day EMA. The pair could decline to $0.11 later.
The moving averages on the 4-hour chart are sloping upwards and the RSI is in the positive zone, giving buyers an advantage. Buyers will have to push the price above $0.13 to open the doors for a possible rally, followed by $0.14 and then $0.15. Contrary to this assumption, if the price breaks below the 20-EMA, the pair could drop to the uptrend line. A break below this support could reverse the advantage in favor of the bears. The pair could decline to $0.11 later.
Theta Network (THETA)
Theta Network (THETA) has been consolidating in a tight range of $1 to $1.55 for the past few days. The longer the time spent in an interval, the stronger the break from it will be. Both moving averages are on the verge of completing a bullish crossover and the RSI is in the positive territory. If buyers push the price above $1.55, it will suggest the start of a new upward move. THETA/USDT pair could then rally to the $2.10 formation target. Contrary to this assumption, if the price drops from $1.55, it will suggest that the bears continue to defend the resistance aggressively. This could keep the pair stuck in range for a few more days.
The 4-hour chart shows the price turning down from the overhead resistance at $1.55, but a positive sign is that the bulls are trying to defend the 20-EMA. This indicates that sentiment has turned positive and investors are buying the dips. If the price bounces back from the current level, the bulls will again try to clear the overhead $1.55 hurdle. If they can achieve this, they could suggest the start of a new uptrend. Conversely, if the price breaks below the 20-EMA, the pair could drop to the 50-SMA.
The last altcoin on the list:
Helium (HNT)
Helium (HNT) has formed a symmetrical triangle pattern showing indecision between bulls and bears. The price has been stuck between the resistance line of the triangle and the 20-day EMA ($10.50) for the past few days. This is a positive sign as it shows a change in sentiment from selling on rallies to buying on dips. If buyers push the price above the resistance line of the channel, it will indicate a potential change in trend. The HNT/USDT pair could then rally to $16.50 and then to the $18.50 pattern target. This positive view may be invalidated in the short term if the price declines and falls below the 20-day EMA. This could open the doors for a possible drop to the support line of the triangle.
The bulls struggle to hold the price above $12, which suggests the bears are fiercely defending the $12.50 to $13.50 overhead zone. If the price breaks below the uptrend line, it could turn the short-term advantage in favor of the sellers. Alternatively, if the price bounces back from the 20-EMA, it will indicate that the bulls are buying on the dips. The bulls will then make another attempt to clear the overhead area. If they are successful, it will suggest the beginning of a new ascent.
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