US jobs data on August 5 came in above market expectations, showing that inflation has not cooled off. The tight correlation between stock markets and cryptocurrency markets is expected to continue. If it continues, there will be some more room for the recovery in the crypto markets to continue. As we reported on cryptocoin.com, on-chain tracking resource Material Indicators said in a Twitter update on Aug. 5 that if Bitcoin (BTC) rises above $25,000, there is no major resistance until the $26,000 to $28,000 range. If Bitcoin can climb above the overhead resistance, could it prolong its recovery by pushing certain altcoin projects higher? According to analysts, the 4 altcoins on the list will perform well this week. Here are the 4 altcoins on the Analyst’s list…
The first altcoin on the list: Flow (FLOW)
The bears are trying to stop the rally around $3 but the bulls are not giving up much from the ground. This shows that investors are in no rush to make a profit after the last rally. The 20-day EMA ($2.07) has started to rise. The RSI is close to the overbought zone, which indicates that the bulls have prevailed. FLOW/USDT pair gains momentum if buyers push the price above the $3 to $3.30 resistance zone. Thus, the altcoin price will rise towards $ 4.60.
The altcoin has bounced back from overhead resistance around $3 but is finding support at the 20-EMA on the 4-hours chart. If the bulls push the price above $2.80, the pair will retest the overhead resistance at $2.99. A break above this level will signal a resumption of the uptrend. However, if the price dips below the 20-EMA, the pair slides down to the 50 percent Fibonacci retracement level at $2.41 and then the 61.8 percent retracement level at $2.27. Thus, a break below this level could turn the advantage in favor of the bears and bring the pair down to $2.
Theta Network (THETA)
Theta Network (THETA) broke above firm general resistance on Aug. The bears tried to push the price below the breakout level on August 6, but the bulls held their ground. The 20-day EMA ($1.39) has started to rise. The RSI is in the positive territory, which gives buyers an advantage. If the bulls hold the price above $1.65, THETA/USDT could start a new uptrend towards the $2.10 pattern target. However, if the bulls break through this general hurdle, the pair will extend its rally to $2.60. To invalidate this positive view, the bears will need to push and sustain the price below $1.55. Thus, aggressive bulls will fall into the trap and the pair will slide to the moving averages.
The 4-hour chart shows the bulls buying the dip to the 20-EMA. Both moving averages on the 4-hour chart are rising. The RSI is close to the overbought zone, which indicates the path of least resistance to the upside. The upward move will continue if the bulls hold the price above $1.65. The first sign of weakness will be a break and close below the 20-EMA. Thus, the pair will drop to the 50-SMA. The bears will have to push the price below this level to signal that the uptrend may have ended in the near term.
Quant (QNT)
Quant (QNT) has rebounded strongly from its intraday low of $40 on June 13. The bears tried to stop the rise at $115. However, the bulls aggressively bought the dip below the 20-day EMA ($103) on July 26. Thus, it pushed the price above the overhead resistance at $115 on August 6. This indicated the resumption of the uptrend. Alternatively, if the price declines from the current level, the bulls will attempt to turn the $115 level to support. If this happens, the pair will resume its uptrend. The bears will have to break and sustain the price below the 20-day EMA to gain the upper hand.
The altcoin is in an uptrend but the 4-hour chart RSI has jumped into the overbought zone. This indicates the possibility of a short-term correction. The bulls are expected to buy the dips at the 20-EMA. Thus, it will be seen that the mood remains positive and investors are buying on the declines. This will increase the likelihood of a resumption of the uptrend. On the contrary, if the price drops from the current level and breaks below the 20-EMA, the pair will slide to the 50-SMA. This is an important level to consider. Because a break below this will result in a drop to $100.
Last Altcoin Maker (MKR) on the list
Maker (MKR) is facing stiff resistance near $1,100. The moving averages are rising and the RSI is in the positive territory, indicating that the buyers have the upper hand. Thus, the altcoin will rally to $1,400 and then to its target of $1,570. Such a move suggests that the pair may have bottomed out. Contrary to this assumption, if the price drops from overhead resistance and breaks below the 20-day EMA, the altcoin could slide to the trendline. A break and close below this level will invalidate the bullish setup.
The pair formed a symmetrical triangle on the 4-hour chart. The 20-EMA is gradually rising and the RSI is in the positive territory. This indicates a slight advantage for the bulls. If the buyers move the price above the resistance line, the pair will rise towards the overhead resistance at $1,188. Conversely, a break below the support line of the triangle favors the sellers. The altcoin will then be able to drop to the psychological level of $1,000.
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