Bitcoin price is set to start a new week from older support levels. Meanwhile, 4 medium-volume altcoins are giving green signals for bullishness.
These 4 altcoins winked at the bulls as BTC price stabilized
Bitcoin (BTC) price recently followed a downward move to the $26,114 level. It was down an alarming 11% on a weekly basis. While it seems like a positive development for Bitcoin to find support around $25,000, some analysts are considering a pullback scenario towards the critical $20,000 level.
The drop in Bitcoin marks a broad-based sell-off, pushing the prices of several altcoins down. However, there are a few altcoins that stand out by bouncing off strong support levels and continuing their upward move. Let’s examine the charts for the top 5 altcoins that could break the negative trend and stay positive for the next few days. Technical analyst Rakesh Upadhyay identifies critical levels to watch…
Hedera (HBAR)
HBAR price declined from the overhead resistance at $0.078 on August 15. This indicates that the bears are active at higher levels. However, a small advantage altcoin bulls favor is that buyers are buying the $500,054 drop.
On the technical side, both moving averages are rising and the RSI is in the positive territory. This shows that buyers have the upper hand. The bulls will attempt to push HBAR price back towards the overhead resistance of $0.078. If this resistance is overcome, the altcoin price will head towards $0.093 and eventually $0.099.
Instead, if the price drops and dips below the 20-EMA, it will indicate that the bears are continuing to sell in the rallies. The altcoin could then retest the support on the uptrend line. A break below this level opens the doors for a decline to $0.045 and then to $0.040.
The altcoin is showing signs of recovery but is facing resistance near $0.070. This indicates that the bears are still present and the selling pressure continues on the uptrends. The price is now back to the moving averages.
If the price moves higher from this level, it indicates that the bulls are attempting to use the moving averages as support. Buyers could then make an effort to surpass the $0.070 resistance. If they succeed, the rally will continue up to $0.075. However, if it breaks below the moving averages, it is possible for the altcoin to fall towards the uptrend line. Therefore, it is very important to closely monitor the price movement and these levels in the near term.
Optimism (OP)
OP price dropped below the moving averages but found support at the uptrend line. This indicates that demand is at lower levels.
The altcoin jumped from the uptrend line but faced resistance around $1.51. If the price does not break below the uptrend line, a bullish break above the 20-day EMA will increase the probability. In this case, there is a rally towards the altcoin’s overhead resistance level of $1.88.
But in the opposite scenario, if the price turns down and breaks below the uptrend line, it will show that the bears have gained dominance. Therefore, a drop to $1.21 then $1.09 is in question for the OP.
The 4-hour chart analysis shows that the bears are trying to stop the recovery at the 50-SMA. If the price closes below the 20-EMA, the next possible stop will be the bullish line. If this support level breaks down, it will mark the beginning of a more serious decline.
Contrary to this scenario, however, if the price makes an upward move from the current level and rises above the 50-SMA, it will indicate the start of a relief rally near $1.61. If this level is exceeded, the altcoin price has the potential to rise as high as $1.71.
Injective (INJ)
Injective’s price action over the past few days has formed an ascending ascending triangle pattern that shows buyers have a slight advantage.
The altcoin pulled the price below the bullish triangle on August 17. However, the long tail on the candlestick showed solid buying activity at lower levels. On August 18, the bulls took the price above $7.73. This indicates that the bulls are making an effort to support the 20-day EMA.
If the price rises above $8.16, the bulls will regain control. This clears the hurdles for a potential rally. It even beats the $10 expectations. However, if the price breaks below the uptrend line, a drop to $5.40 is in question.
The altcoin is showing a strong bounce off the uptrend line on the 4-hour chart. This shows that the bulls are firmly defending this level. The recovery will likely face the overhead resistance at $8.33.
If the price retraces from the current level or overhead resistance, it will indicate that the bulls are continuing to buy at the lower levels. This increases the chances of a break above the $8.33 level. If this resistance level is surpassed, the altcoin could rally towards $8.83 and then towards $9.50. If the 50-SMA is broken to the downside, this time the bears will put pressure on $6.50.
THORChain (RUNE)
While most altcoins are stunned under the pressure, THORChain has been in an uptrend for the past few days.
The altcoin displayed an upward movement with the long wick observed on the August 19 candlestick. However, this move faced selling pressure at the overhead resistance level of $2. The rapid rally in the last few days has also pushed the RSI level into the overbought zone. This indicates the possibility of a small consolidation or correction.
A break above the $2 level will increase the likelihood if the bulls do not decline further from the current level. If this happens, the altcoin price could decline towards $2.30 and then $2.60. Conversely, if the price breaks below $1.41, it will signal the start of a deeper correction to $1.33.
Both moving averages on the 4-hour chart are rising and the RSI is in the overbought zone. If the price stays above $1.80, the pair will retest the critical $2 resistance. Conversely, if the price dips below $1.80, a drop to the 20-EMA is in question. A strong bounce from this level will indicate that sentiment is still positive. This increases the $2 rally opportunity. On the other hand, in an oversold situation, a drop to $1.38 is likely on the table. Therefore, it is very important to monitor the altcoin price and follow the levels.
These coins are losing momentum: They’ve reached historic lows
While the Bitcoin price stabilizes, the entire altcoin industry is not having its good days. As reported by Kriptokoin.com, 7 altcoins, including APE and ALGO, saw historical bottoms this week.
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