The consolidation of Bitcoin in its present range may provide trading chances for ADA, SOL, MATIC, and KLAY in the next days.
The core personal consumption expenditure (PCE) price index in the United States climbed 0.5 percent in May, falling short of market expectations of 0.6 percent. However, when compared year on year, the PCE index increased by 3.4 percent, the most since 1991.
While the U.S. Federal Reserve expects inflation to be transitory, analysts at BofA differ in their estimation. The bank anticipates U.S. inflation to remain high, in the 2% to 4% range, for the next two to four years and believes the Fed will hike rates in the next six months, barring a financial market crash.
If inflation stays high, investors will likely turn to Bitcoin (BTC) to hedge their portfolios. According to a CoinShares study released on June 21, inflation in the next five years is unknown, but “adding Bitcoin and other real assets as a prudent measure to protect portfolios from the tail-risk of out-of-control inflation.”
Although near-term risk persists, many cryptocurrencies may provide traders with short-term trading possibilities. During a bad market, traders may choose to book profits at regular intervals rather than wait for windfall rebounds. Let’s have a look at the charts of the top five cryptocurrencies to see if they will become short-term positive in the next days.
Bitcoin fell below the $28,000 to $31,000 support zone on June 26, but the bulls purchased this fall again, which is a good indication. This indicates that purchasers are stockpiling at lower levels.
The bulls will now attempt to drive the stock over the 20-day exponential moving average ($35,148). If they are successful in doing so, it suggests that the selling pressure may be easing. The bullish divergence on the relative strength indicator (RSI) also indicates the possibility of a relief rally.
A break over the 20-day moving average (EMA) might pave the way for a move to the tough overhead resistance zone of $40,000 to $42,451.67. The 200-day simple moving average ($43,505) is just above this zone, therefore the bulls may struggle to break through.
This suggests that the next four days might see a consolidation between $28,000 and $42,451.67. The longer the price remains in this range, the greater the next breakout from it will be. If the price can go below $28,000 and stay there, the trend will favour the bears.
According to the 4-hour chart, the bulls are aiming to establish a higher bottom at $30,000. The 20-EMA has flattened out, and the RSI is around the midway, indicating that the sellers’ hold is slipping.
If the bulls can keep the price above the 20-EMA, the BTC/USDT pair may reach the 200-SMA. A break through this barrier might entice more purchasing, pushing the price up to $40,527. This optimistic outlook will be rendered null and void if the price falls below $30,000.
Cardano (ADA) rebounded off the $1 support on June 22, indicating strong accumulation near this level. However, the bulls could not push the price above the 20-day EMA ($1.39) on June 24 and 25, suggesting that bears are defending the resistance.
The gradually descending 20-day EMA and the RSI in the negative zone indicate that bears are in control. If the bears sink and keep the price below $1, the ADA/USDT pair may see a protracted liquidation. This may cause the price to fall to $0.68, then to $0.40.
If the bulls can push the price over the 20-day EMA, it will indicate that the short-term trend has shifted in their favour. The pair may then climb to $1.60 before hitting the severe overhead resistance at $1.94.
The 4-hour chart’s moving averages have flattened down, and the RSI is nearing the middle, indicating that selling pressure is easing. If the bulls push the price over $1.40, it might suggest the creation of a short-term bottom. The pair may next try to rise to $1.60, then $1.88.
In contrast to this notion, if the price falls from its present level of $1.40 and falls below $1.20, it indicates a shortage of buyers at higher levels. The pair may then fall below the key support level of $1.
The long tail on Solana’s (SOL) June 22 candlestick shows that traders are aggressively defending the 200-day SMA ($20). However, the relief rally could not scale above the 20-day EMA ($33), indicating that bears are selling on rallies.
Buyers are presently seeking to establish a higher bottom around $26.65. If they can push the price over the 20-day EMA and keep it there, the SOL/USDT pair may gain momentum and go up to the downtrend line, then to $44.
The downsloping 20-day EMA and the RSI in negative territory, on the other hand, imply that bears have other ideas. They will attempt to defend the 20-day EMA and bring the price down below $26.65. If this support breaks, the pair could fall to $21.10.
A big comeback from this level will indicate that bulls are accumulating on dips. For the next several days, the pair might stabilise between $21.10 and $44.
The 4-hour chart’s 20-EMA has flattened out, and the RSI is close to the middle, indicating a balance between buyers and sellers. This balance may shift in favour of the bulls if the price is pushed and maintained over $33.
A rise like this may pave the way for a move to the downtrend line and ultimately to $42. If the price falls from the present level of $33, the bears will attempt to break the support of $26.65. If this occurs, the edge may shift to the bears.
Polygon (MATIC) has been trading below the 20-day EMA ($1.29) for the past few days but the positive sign is that the bulls have not allowed the price to dip to the May 23 low at $0.74. This suggests a lack of sellers at current levels.
If the bulls re-establish themselves and push the price above the downtrend line, the correction may be ended. The MATIC/USDT pair may then advance to $1.71 before reaching the psychological barrier level of $2.
The bears, on the other hand, may have different intentions. The 20-day EMA is trending downward, and the RSI is in the negative zone, indicating that sellers have the upper hand. If they lower the price below $0.92, the pair might fall to the $0.74 to $0.68 support zone.
This zone is expected to be strongly defended by the bulls. A significant bounce indicates accumulation at lower levels, and bulls may then attempt to drive the price above the downtrend line.
The bears are fiercely defending the downtrend line on the 4-hour chart. The bears have an edge due to the downsloping 20-EMA and the RSI in the negative zone. If they lower the price below $1, the pair may fall below $0.92.
If the price recovers from $1, the bulls will make one more try to push the price over the downtrend line. If they are successful, it will indicate that bulls are attempting to make a comeback. On a breakthrough, the pair may gain momentum and close over $1.25.
Klaytn (KLAY) has been trading below the 20-day EMA ($1.02) for the past many days but the RSI is showing a positive divergence. This indicates that the sellers may be losing their grip.
If the bulls push the price above the 20-day EMA and keep it there, it will be an indicator that a trend shift is probable. The bears, on the other hand, are unlikely to give up lightly. They will attempt to halt the rebound in the $1.24 to $1.29 range.
If the price falls from the above zone but does not fall below the 20-day EMA, it indicates that the bulls are attempting a comeback. A break through the resistance zone might entice buyers, who could next test the 200-day SMA ($1.51).
A break and closure above the 200-day SMA will suggest that the downtrend is likely to stop in the near future. This optimistic viewpoint will be rendered null and void if the price falls below $0.72.
The KLAY/USDT pair is trading within a falling channel on the 4-hour chart. The bulls were able to drive the price above the channel and the 200-SMA, but they were unable to maintain the higher levels.
If the bulls can drive the price above the 20-EMA and keep it there, the pair may try to break through the channel and the 200-SMA once more. If this occurs, the pair may begin a new upswing that may take it to $1.62.
In contrast to this premise, if the pair falls below $0.86, the decrease may reach $0.72.