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Bitcoin remains trapped in a predictable range below Binance Coin, while Cardano, Litecoin, and Chainlink have developed bullish patterns, implying further upside.
Several traders purchased Dogecoin (DOGE) in the week leading up to Elon Musk’s Saturday Night Live appearance, expecting a pump. However, Musk’s mention of Dogecoin during his monologue did not result in the rally that traders were hoping for, and experienced traders may have dumped their bets on inexperienced traders hoping for a breakout.
Dogecoin dumped to an intraday low at $0.41 today, losing over 34% from the previous day’s close. Since then, the meme coin has been trying to stage a recovery and has risen to $0.54. The sharp fall in Dogecoin price shows that buying the hype, without any major fundamental reason, could result in stomach-churning volatility.
On the other hand, Ether (ETH) stretched its uptrend even more, tumbling only below $4,000, while Bitcoin (BTC) plummeted short of the $60,000 threshold once more, signalling heavy selling on any small rally. A few days of range-bound activity in Bitcoin is a good sign because it might pave the way for the next step of the uptrend.
With Ether leading the altcoin attack, here are the top five cryptocurrencies that could outperform in the short term.
Bitcoin broke through the downtrend line on May 8, but the bulls are struggling to clear the $58,966.53 barrier. The moving averages have immediate relief on the downside. If the stock bounces off the 20-day exponential moving average ($56,387), the bulls will try to drive the price beyond $58,966.53.
If they are successful, the BTC/USDT pair could begin its journey towards the ascending channel’s resistance line at $67,000. Since the price has already turned down from the resistance line, the bears will attempt to protect this amount once more. After investors drive the price above the channel, the momentum will pick up.
The flattish moving averages and the relative strength index near to the midpoint, on the other hand, indicate a lack of bullish traction. If the price falls below the 20-day EMA, the pair could reach $52,323.21.
A quick bounce from this stage suggests buying at lower prices, which may result in a few days of range-bound trading between $52,323.21 and $58,966.53.
On the other hand, a split below $52,323.21 may pave the way for a drop to the ascending channel’s support line and then to $46,985, where buyers may move in to halt the decline.
The bears are defending the $58,966.53 overhead resistance on the 4-hour map. If they can get the price to fall below the 50-simple moving average, the pair will fall to $55,000 and then to $52,323.21.
The flattish moving averages and the RSI near the midpoint indicate a supply-demand equilibrium. If the price bounces off the current level and rises above $58,966.53, the pair may gain momentum and rally towards the target goal of $65,012.18.
Binance Coin (BNB) is in a deep uptrend, and the moving averages suggest that the direction of least resistance is up. While the RSI’s negative divergence is a warning sign, the setup would not be enabled before the price retreats and reveals weakness.
If the bulls push the price beyond $680, the BNB/USDT pair could enter the next leg of the uptrend, which could take it all the way to $808.57. This bullish outlook would be made null and void if the pair falls below the 20-day moving average ($592).
If this occurs, short-term traders will liquidate their positions, resulting in a drop to the 50-day SMA ($466). Since the price has not closed below the 50-day SMA since December 13, 2020, this is a valuable help to keep an eye on. A break below $428 may indicate that a top has formed.
The pair is trading between $600 and $680 on the 4-hour chart. The 20-EMA has begun to rise, and the RSI is in optimistic territory, signalling that the bulls are in charge. If the bulls would drive the market beyond $680 and hold it there, the pair could rally to $760.
If the price falls from its current level and falls below the moving averages, the pair can correct to $600. A bounce off this stage might keep the consolidation going for a few days longer.
Cardano (ADA) had been stuck between the $1 to $1.48 range for the past many weeks, before breaking out on May 6. This suggests the equilibrium between the bulls and the bears resolved in favor of the buyers.
That is not to say the bears have given up. On May 7 and today, they attempted to lower the price below $1.48. The long tail on the day’s candlestick, on the other hand, shows that the bulls have successfully flipped $1.48 into support.
If buyers keep the price above $1.74, the ADA/USDT pair can rise to $2 and then $2.25. This bullish outlook would be made null and void if the price falls below the 20-day EMA ($1.42). A change like this could suffocate the violent bulls, resulting in a decline to $1. A bounce off this stage could keep the pair range-bound for a few days longer.
The 4-hour chart’s moving averages are sloping up, and the RSI is in positive territory, signalling that the bulls are in charge. The momentum can build up if buyers keep the price above $1.75.
If the price falls from its current level, it will fall to the 20-EMA and then to the $1.48 support. If the price bounces off this help, it could trade in a narrow range between $1.48 and $1.75. Short-term bullish optimism can be nullified if the market falls below the 50-SMA.
Litecoin (LTC) has been trading inside an ascending broadening wedge pattern. Although the bears have been defending the resistance line of the wedge for the past few days, the positive sign is that the bulls have not given up much ground.
If the bulls can keep the price above $372.53, the LTC/USDT pair will enter the next leg of the uptrend, which will take it to $400 and then $463.31. The rising moving averages and an overbought RSI indicate that the direction of least resistance is to the upside.
In contrast to this assumption, short-term traders can exit their positions if the bulls struggle to keep the price above the resistance level. This may lead to a decline to the 20-day EMA ($298). A break below this level might set the stage for a drop to the 50-day simple moving average ($247).
The pair is consolidating between $330.50 and $372.50 on the 4-hour map. The bears have effectively defended the overhead resistance and are attempting to drag the price down towards the 20-EMA. If the market bounces off this help, the bulls will try again to restart the uptrend.
A split below the 20-EMA, on the other hand, could drive the price down to $330.50. A bounce off this support level could keep the pair inside the range for a few more days. A break and close below $330.50, on the other hand, might mark the start of a deeper correction. The 50-SMA is the first level of funding, followed by $290.
Chainlink (LINK) is in an uptrend and it had hit a new all-time high at $51.96 on May 7. During a strong uptrend, corrections are shallow and the price tends to consolidate in a tight range before resuming the up-move.
The long wick on the May 7 candlestick indicated higher-level selling, which was accompanied by an inside-day candlestick trend on May 8, signalling indecision among the bulls and bears. The upsloping 20-day EMA ($42) and the RSI in the overbought region, on the other hand, say that bulls have the upper hand.
If bulls can keep the price above $51.96, the LINK/USDT pair can restart its upward trend. On the upside, the next goal is $66.74.
On the other hand, if the price falls from its current level and violates the $46 support, the pair might fall to the 20-day EMA. A big rebound off this support indicates that morale is still optimistic. A break below the 20-day EMA, on the other hand, indicates that the short-term traction has diminished, and a decline to the 50-day SMA ($35) is possible.
The price has broken out of the $46 to $50 band, according to the 4-hour map. This signals the start of the next leg of the uptrend, with a high of $54 as an immediate target. The 20-EMA has begun to rise, and the RSI is above 67, signalling that the bulls are in command.
However, if the price falls below $50, it indicates that the markets have refused the higher prices. This could lead to more trading, bringing the price down to the 50-SMA. A split below this degree indicates that the bears have the upper hand.