Despite the long weekend, #bitcoin (BTC) has remained relatively stagnant, with its price hovering around $28,350 and trading within a narrow range. This marks the third consecutive week that Bitcoin has formed a Doji candlestick pattern, indicating uncertainty regarding the next directional move for both the bulls and the bears.
Bitcoin is not alone in its stagnant state, as the S&P 500 Index has also been trading within a range for the past nine months, prompting Jurrien Timmer, director of global macro at asset manager Fidelity Investments, to tweet that a breakout is likely on the horizon.
Several #altcoins are seeing profit-booking as Bitcoin struggles to break above the $30,000 level. However, some have experienced only minor pullbacks, suggesting traders are optimistic for upward momentum.
To identify which altcoins may be poised for an uptrend, let's examine their charts and the key resistance levels that indicate bullishness. What are the price points at which these five #Cryptocurrencies may turn #Bullish if Bitcoin breaks out to the upside?
Bitcoin (BTC) Price Analysis
For the past two days, Bitcoin has traded within a tight range, reflecting uncertainty among both bullish and bearish traders. This typically precedes an increase in volatility.
The 20-day exponential moving average is leveling off at $27,500, while the relative strength index has slowly trended towards the center, suggesting balance between supply and demand.
If the price drops below the 20-day EMA, it could trigger several short-term stop losses, causing the BTC/USDT pair to fall to $25,250.
However, if the price rebounds from the 20-day EMA with strength, it would indicate positive sentiment and traders buying dips. A rally above $29,200 may lead to a rally up to $30,000 and eventually $32,500.
On the 4-hour chart, the 20-EMA is also leveling off, and the RSI hovers below the midpoint. This offers no clear advantage for either bulls or bears, and uncertainty is unlikely to last long before a directional move begins. However, it's challenging to predict which direction the breakout will occur.
As such, it's better to wait for the breakout to happen before making directional bets. The key levels to watch are $29,200 on the upside and $26,500 on the downside, as breaking either of these levels may start a short-term trending move.
Cardano (ADA) Price Analysis
Cardano (ADA) has managed to hold above the 20-day EMA ($0.37), indicating strong demand at lower levels.
The RSI in the positive zone and the upward-sloping 20-day EMA both suggest that ADA/USDT is likely to continue moving upwards. The pair may first test the neckline of the inverse head and shoulders (H&S) pattern, and if it breaks above this level, it could rally towards the pattern target of $0.60.
To prevent the upward momentum, bears will need to push the price below the 20-day EMA. If this happens, the pair may drop towards the 200-day simple moving average ($0.35) and then to $0.30.
On the 4-hour chart, ADA/USDT has broken above the 20-EMA and could test the downtrend line. If it breaks through this resistance, it may indicate that the pullback is over and the pair could move towards the neckline. However, if the price is rejected at the downtrend line, it could signal bearish activity at higher levels, potentially leading to a drop below $0.37 towards the 200-SMA.
Stellar (XLM) Price Analysis
Stellar (XLM) has dropped from the overhead resistance of $0.12 and is now approaching the 20-day EMA ($0.10). The bulls are expected to buy the dips to the 20-day EMA.
If the price bounces back from the 20-day EMA, the bulls will try again to clear the overhead resistance. If successful, the XLM/USDT pair could complete a bullish rounding bottom pattern, indicating a new up-move. The pair may rally to $0.15 and then to the pattern target of $0.17.
However, if the price turns down and falls below the 20-day EMA, it will indicate weakening of the bullish trend. The pair may drop to the 200-day SMA ($0.09). This level is crucial for the bulls because if it fails to hold, the pair could drop to $0.07.
On the 4-hour chart, the pair is correcting within a falling wedge pattern. The price has bounced off the support line, and the bulls will aim to push the pair above the wedge. If they succeed, the pair may rally to $0.11 and then to $0.12.
On the other hand, if the price falls below the support line, it will indicate increased selling pressure. The price has a small support at $0.10, but if it fails, the decline may extend to the 200-SMA.
Aave (AAVE) Price Analysis
Aave (AAVE) has faced strong resistance at $82 and has fallen below the immediate support level of the 20-day EMA ($75). This indicates bearish pressure on the asset.
The AAVE/USDT pair may slide towards the 200-day SMA ($73), which is also close to the uptrend line. Buyers are expected to defend this level vigorously. If the price bounces off the uptrend line and breaks above the 20-day EMA, the pair could rise towards $82.
If the bulls manage to overcome this resistance level, the pair will complete an ascending triangle pattern with a target objective of $100. However, if the price falls below the uptrend line, the bullish view will be invalidated, and the pair may slide towards $68 and later $64.
On the 4-hour chart, the price has fallen to the 200-SMA, and the 20-EMA has started to turn down. The RSI is also in negative territory, indicating that bears have the upper hand.
If the 200-SMA breaks, the pair may decline towards the uptrend line, which is a critical level for the bulls to defend. A break below this level would further strengthen the bears. Conversely, a break above the 20-EMA would indicate a potential bullish comeback, with the pair rising towards the resistance level of $82.
CFX (Conflux) Price Analysis
For the past few days, Conflux (CFX) has been in a corrective phase, but there is a small positive that the bulls are attempting to defend the 20-day EMA ($0.36).
Should the price rebound from its current level, the CFX/USDT pair could aim for the downtrend line. This level is crucial for the bears to protect as a breakout may pave the way for a rally towards $0.44 and subsequently $0.49.
Alternatively, if the price plunges and remains below the 20-day EMA, it could suggest that the bulls are exiting, leading to further selling. This could push the price towards the next support at $0.30, where buyers are likely to emerge.
On the 4-hour chart, the bears seem to be keeping the price below the 20-EMA, which may result in the pair dropping towards the 200-SMA, an essential support level.
If the price bounces off this support, the bulls may try to push the price towards the downtrend line. A break above it may indicate that the bulls are gaining momentum.
However, if the price breaks and closes below the $0.30 support, it may prompt more selling, pushing the price down to $0.25.
This news is republished from https://coinaquarium.io/
