Optimism (OP), Chainlink (LINK), and Maker (MKR) could see significant volatility over the next seven days as traders look to profit from the current high volatility in the market. Meanwhile, the total cryptocurrency market capitalization has recovered 0.32% over the past 24 hours, reaching a total market capitalization of approximately $1.17 trillion at press time.
Bitcoin’s (BTC) market dominance has slightly declined over the past day of trading. Although its dominance has only dropped by 0.05%, altcoin traders may still try to find trading opportunities in smaller cryptocurrencies in the week ahead.
ON
According to data from the CoinMarketCap website, OP’s price has slightly dropped by 0.15% over the past 24 hours of trading, with the cryptocurrency valued at around $1.47 at press time. The price drop has also impacted its weekly performance, which has fallen further to -1.50%.
A symmetrical triangle has emerged on OP’s daily chart, which suggests that the altcoin’s price could breakout in the coming week. Furthermore, technical indicators suggest that this potential breakout could be to the downside. First, the MACD indicator is about to trigger a bearish technical signal as the MACD line is attempting to cross below the MACD signal line. In addition to this, OP’s price has fallen below its 9-day moving average in the past 48 hours. Earlier today, it also fell below its 20-day moving average but has since recovered above the technical indicators.
If OP closes below the 20-day EMA at $1.437 today, the altcoin’s price could be at risk of testing the critical support at $1.320. A break below this level could even lead OP to $1.015 in the next few days.
On the other hand, a close above the 9-day EMA at $1.486 today could lead the OP to flip the $1.690 resistance level into support. Sustained buying pressure could also push the cryptocurrency’s price to the next critical resistance level at $2.050.
LINK
LINK has also seen a drop in price over the past 24 hours, down 0.90% to trade at $7.44 at press time. However, despite the recent slide, LINK has remained positive over the past seven days, with growth of over 7% over the past week.
Furthermore, the altcoin’s 24-hour trading volume has surged by 9% over the past day to $236,412,647. Meanwhile, LINK’s market cap is $4,004,142,227, which means LINK is ranked as the 20th-largest cryptocurrency by market cap.
LINK’s price recently re-entered the positive price channel that has formed on the daily chart over the past few weeks, following a bearish start to its price movement in the past few days. The price decline also pushed the altcoin below the 9-day EMA, where the currency continues to trade at press time.
If LINK closes today’s daily candle below the next major support at $7.205, it could fall below the aforementioned price channel to test the next support at $6.650 in the coming week. On the other hand, a rebound from the $7.205 support in the next 24-48 hours could result in a move above $7.725.
Sustained buying pressure could also push the altcoin’s price to $8,420 in the coming week. One technical indicator to keep an eye on is the daily RSI. The indicator shows LINK in neutral territory, suggesting that LINK still has room to rise before being considered overbought.
Apart from this, the daily RSI line is trading below the RSI SMA line at press time. However, the two lines are looking to cross over. If such a crossover occurs, it could indicate that buyers have enough strength to carry the price to $8.420 in the next few days.
MSEK
Compared to OP and LINK, MKR has seen a price increase of over 5% over the past day of trading, with the cryptocurrency valued at $1,152.31 at press time. This 24-hour success also translates into a notable 12.08% increase in MKR’s weekly performance.
In addition, MKR also gained 4.61% and 4.71% against Bitcoin (BTC) and Ethereum (ETH), respectively. Meanwhile, the altcoin’s 24-hour trading volume was $125,770,610, up 44.04% from the previous trading day.
MKR closed above the $1,118 resistance level in the past 48 hours, eventually turning the level into support. However, at press time, the altcoin’s price was dangerously close to the upper limit of the Bollinger Bands indicator. This could cause MKR’s price to drop in the next 24-48 hours.
If this bearish thesis is validated, then MKR could fall below the recently flipped $1,118 level and could drop to the 9-day EMA of $1,072 in the coming days. If the price of the cryptocurrency loses the support of the 9-day EMA, then it will be at risk of falling to $1,000 next week.
However, if MKR can close above $1,118 within the next 48 hours, it could break out of the upper Bollinger Band. This could lead to an attempt to challenge the next major resistance at $1,305 during the week.