234 Interactions, 10 today
Bitcoin remains under threat, but some altcoins such as XRP, DOT, XLM, and SOL are showing signs of resuming their uptrend.
Bitcoin (BTC) has been failing to break through the $50,000 barrier, which may lead to traders liquidating their Bitcoin shares in order to invest in altcoins. According to Glassnode info, the number of whale addresses with more than 1,000 BTC has dropped from around 2,500 in February to around 2,100 now.
If major investors continue to sell, Bitcoin will experience a steep drop before institutional investors move in and buy at a lower price. Though MicroStrategy announced the acquisition of 271 Bitcoin on May 13, it appears that some current institutional investors are taking a wait-and-see approach.
In an interview with Financial NewsSquare, Square chief financial officer Amrita Ahuja said that the company has no intentions to add Bitcoin to its current haul of approximately 8,027 Bitcoin acquired in October 2020 and February of this year.
If other institutions refrain from purchasing at current prices, Bitcoin’s price is expected to fall even lower. Fundstrat Global Advisors managing director Tom Lee, on the other hand, claims Bitcoin’s surge has wings. Lee has raised his year-end Bitcoin goal to $125,000 from $100,000.
With the focus shifting to coins, let’s take a look at the top five cryptocurrencies that might lead the charge in the coming days.
The bulls bought the dip to the neckline of the head and shoulders trend again today, but the candlestick’s long wick signals profit-taking at higher prices. Bitcoin’s mood seems to have shifted from one of buy on dips to one of sell on rallies.
The H&S trend would be completed if the bears dive and keep the price below the neckline. The target goal for this setup is $31,653.73. The bears are in charge, as shown by the downsloping 20-day exponential moving average ($53,297) and the relative strength index (RSI) below 36.
The bulls, on the other hand, are unlikely to give up quickly. They will attempt to halt the downturn in the $43,000 to $40,000 help range, but if they fail, the decline may be precipitous.
In contrast to this expectation, if the price rises above $51,550 from its current level, the BTC/USDT pair can rally to the 20-day EMA. A break and close above the $60,000 resistance level would indicate that the bulls have re-entered the game.
The recovery from $46,435.02 stalled at the 20-EMA. This indicates that traders are selling on rallies to the 20-EMA, indicating that sentiment is negative. If the bears push the price below the neckline, the selling could get more intense.
If the bulls protect the neckline again, the pair will attempt to break above the 20-EMA. If this occurs, the rally could continue to $51,538.22, where the bulls are likely to face strong resistance.
If the price falls through this resistance, the pair can consolidate for a few days between $46,000 and $51,500.
Currently, XRP is trading inside a symmetrical triangle, which is a continuation trend. If the bulls will push the price beyond the triangle’s support line, the altcoin could retest its 52-week high of $1.96.
A break and close over $1.96 could signal the start of the next leg of the uptrend, which could hit $2.68. The RSI has risen into positive territory, but the 20-day EMA ($1.43) has yet to climb, implying that bears will protect the resistance line vigorously.
If the price falls below the resistance line, the XRP/USDT pair could remain inside the range for a few more days. If the bears dive and keep the price below the triangle, the pair could turn negative. A change like this could push the price down to $0.88.
On the 4-hour map, the price has dropped to the moving averages. If the pair recovers from its current lows with momentum, it would be a good time to buy on dips. After that, the bulls will attempt to drive the market over the triangle.
Alternatively, if the bears dive and keep the price below the moving averages, the pair might fall to $1.35 and then to the triangle’s support line. A fall below this support level could give the bears an advantage.
On May 14, Polkadot (DOT) broke out and closed over the overhead resistance at $44. The bulls maintained their momentum, pushing the market to a new all-time high of $49.78 on May 15, but they were unable to maintain the higher levels. Profit-taking has sent the market down below the breakthrough mark of $44 per share.
If the bulls do not give up any ground from where they are now, it suggests buying on dips. The DOT/USDT pair may then make another attempt to break through the psychological stage of $50.
If this occurs, the pair may begin the next leg of the uptrend, which will take it to $63.68. The slightly upward-sloping 20-day EMA ($39.54) and an RSI in positive territory indicate that the direction of least resistance is to the upside.
In contrast to this assumption, if the price continues to fall below $44, the pair will fall to the moving averages. If the price falls below this level, it could reach $32.50.
On the 4-hour map, the bears have dragged the price below the 20-EMA, but the bulls are attempting to regain the help. To reclaim the edge, sellers will have to raise the price above $47. If they excel, a $50 retest is possible.
If, on the other hand, the price does not rise above the 20-EMA, it indicates a lack of purchasing support. This has the potential to drive the price down to the 50-simple moving average. The 20-EMA is flattening, and the RSI is above 50, indicating a supply-demand equilibrium.
Stellar Lumens (XLM) is attempting to resume its upward trend. On May 13, bulls bought the fall to the 20-day EMA ($0.61) and lifted the market to a fresh 52-week high of $0.79 today. The long wick on the day’s candlestick, on the other hand, shows profit-booking at higher speeds.
If buyers can keep the price above $0.73, the XLM/USDT pair can rise to $0.85 and then to $1. The upward sloping moving averages and an RSI above 63 show that bulls are in charge.
In contrast to this prediction, if the price continues to fall below $0.73, the pair might reach the 20-day EMA. A quick bounce from this level would indicate that mood is still optimistic. The bulls will then try to restart the uptrend once more.
This bullish outlook would be made null and void if the price falls below the 20-day EMA. Such a move would imply that traders are closing their positions quickly and are not purchasing the dips. This could lead to a decline to the 50-day simple moving average ($0.53).
An inverse head and shoulders trend is forming on the 4-hour chart. The goal price for this bullish setup is $0.90. The upward sloping 20-EMA and the RSI in positive territory indicate that bulls are in charge.
Corrections are likely to be superficial during heavy uptrends. As a result, the current decline could find support at $0.72. A strong bounce off this stage may increase the likelihood of the uptrend resuming.
This bullish outlook would be made null and void if the stock falls and closes below the neckline. A step like this could catch the bulls, resulting in a lengthy liquidation. The pair could then fall to $0.55.
For the last few days, Solana (SOL) has been stuck between $40 and $49.99. A close consolidation near the maximum is a good sign because it indicates that traders are not in a rush to book earnings.
The 20-day EMA ($42.86) is sloping up, and the RSI has risen past 65, meaning that the direction of least resistance is up.
The SOL/USDT pair can restart its uptrend if the bulls can keep the price above the psychological level of $50. On the upside, the next goal is $60, followed by $69.
If the price fails to hold above $50, the pair will re-enter the range and continue to consolidate for a few more days. If the pair falls below $40, this bullish opinion will be made null and void.
The 4-hour chart reveals that the bulls drove the market to a new all-time high of $52.60 today, but the candlestick’s long wick signals profit-taking at higher prices. The price has fallen below $50 once more, but it could find firm support at $46.
A quick bounce from this stage indicates that traders are buying on declines. The bulls will then attempt to re-establish the uptrend. The rising 20-EMA and the RSI close the overbought zone point to a bullish advantage.
In contrast to this assumption, if the bears drive the market below $46, the pair might reach the 20-EMA. Such a move would imply aggressive selling above $50, which might hold the pair range-bound for a few days longer.