Altcoin prices have crumbled since BTC’s sharp pullback, but BNB, ADA, XMR and TON could be the first to bottom.
Price Analysis
Bitcoin (BTC) is on target to finish the week with a sharp fall of around 9%. This suggests that some traders may be booking profits in fear of a resumption of the downtrend. Analysts expect Bitcoin to reach the $26,600 to $25,000 zone where buying interest may pick up.
When an asset emerges from a bear market, it tries to form higher lows on the way up. These levels act as strong supports during subsequent corrections. The current pullback could end up forming a higher floor for Bitcoin, which may act as a launch pad for the next rally.
If long-term investors believe that a bottom has been made, then panicking and selling on every corrective phase is not a good strategy. Rather, every dip could be an opportunity to build a portfolio.
The correction in Bitcoin has pulled several altcoins lower. Only a handful of major cryptocurrencies are holding out and looking strong on the charts. Let’s study the charts of five cryptocurrencies that may outperform on the way up.
Bitcoin price analysis
Buyers are trying to arrest Bitcoin’s correction at the 50-day simple moving average ($26,983) but the shallow bounce suggests that the bears are not willing to give up.
The 20-day exponential moving average ($28,606) has started to turn down and the relative strength index (RSI) is in the negative zone signaling that bears have a slight edge. The selling could pick up further if the 50-day SMA cracks.
The BTC/USDT pair could then tumble to the breakout level of $25,250. This is an important level to keep an eye on because if this support crumbles, the pair may plunge to $20,000.
Buyers will have to push and sustain the price above the 20-day EMA to signal a comeback. That could attract buying and push the price toward the $31,000 to $32,500 resistance zone.
The pair bounced off $27,125 and reached the 20-EMA. This is the first hurdle that the bulls need to cross to start a strong recovery. The pair may then reach the 50-SMA where the bears will again try to mount a strong defense.
If the price turns down from the current level and slides below $27,125, it will suggest that the sentiment remains negative and traders are selling on every minor rally. That will increase the likelihood of a fall to $26,500 and eventually to $25,250.
BNB price analysis
BNB (BNB) is witnessing a tough battle between the bulls and the bears. Sellers are active above $338 while the bulls are fiercely defending the 50-day SMA ($316).
The BNB/USDT pair rebounded off the 50-day SMA on April 21 and the bulls are attempting to clear the hurdle at $338. If they succeed, it will enhance the prospects of a rally above $346. The pair may then soar toward $400. The gradually upsloping 20-day EMA ($325) and the RSI in the positive territory indicate that bulls have a slight edge.
If bears want to prevent the up-move, they will have to yank the price back below the 50-day SMA. That could accelerate selling and sink the pair to $300 and thereafter toward $280.
The 4-hour chart shows that the price rebounded off the support near $316 and has reached the 50-SMA. If bulls overcome this obstacle, the pair will try to rise to $338 and subsequently to $346. A break above this level could witness a pick-up in bullish momentum.
The first support to watch on the downside is the 20-EMA. If this support gives way, it will suggest that the pair may consolidate between $315 and $335 for some time. The advantage will tilt in favor of the bears if the $315 support gives way.
Cardano price analysis
Cardano (ADA) turned down and plunged back below the neckline of the inverse H&S pattern on April 20. This indicates that the bears are trying to trap the aggressive bulls. A minor positive in favor of the buyers is that they are trying to guard the 50-day SMA ($0.37).
The 20-day EMA ($0.40) has turned down and the RSI is just below the midpoint, indicating that sellers are trying to seize control. If the price plummets below the 50-day SMA, it will suggest that the bears are in the driver’s seat. The ADA/USDT pair could then collapse to $0.30.
Conversely, if buyers want to retain their supremacy, they will have to quickly thrust the price back above the neckline. If they manage to do that, the pair could witness solid buying. The pair may then surge to $0.46.
The 4-hour chart shows that the bears pulled the price below the uptrend line and are trying to flip the level into resistance on a retest. The downsloping 20-EMA and the RSI in the negative territory indicate that bears have the upper hand. If the price slips below $0.38, the selling could intensify and the pair may plunge to $0.34.
This negative view will invalidate in the near term if buyers propel the price back above the uptrend line. Such a move will suggest that the recent breakdown may have been a bear trap. The recovery is likely to pick up momentum after buyers push the price above the 50-SMA.
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Monero price analysis
Monero (XMR) turned down from the neckline of the developing inverse H&S pattern but the sharp recovery from lower levels indicates aggressive buying on dips.
Buyers have pushed the price back above the 20-day EMA ($157) and will again try to challenge the neckline. If this level is scaled, it will complete the bullish setup, clearing the path for a potential rise to $185 and thereafter to the pattern target of $199.
If the price turns down from the current level or the neckline, it will signal that bears are selling on rallies. A break and close below $149 will signal that bears have seized control. The XMR/USDT pair may then slump to $145 and later to $140.
The pair is trading inside a descending channel pattern on the 4-hour chart. The snapback from the support line of the channel shows solid buying at lower levels. If buyers sustain the price above the 50-SMA, the pair could rally to the resistance line of the channel.
Contrarily, if the price continues lower and slides below the 20-EMA, it will suggest that the pair may remain stuck inside the channel for some more time. The bears will gain the upper hand on a break below the channel.
Toncoin price analysis
Toncoin (TON) has formed a bearish descending triangle pattern but a positive sign in favor of the buyers is that the price has been trading near the resistance line of the triangle for the past few days.
The bulls will try to drive and sustain the price above the resistance line, which will invalidate the bearish setup. A breakdown of a negative pattern usually results in an up-move because aggressive traders who may have gone short in anticipation of a decline cover their positions.
Additionally, bullish traders who have been sitting on the sidelines due to the negative setup jump in to buy. Above the resistance line, the TON/USDT pair could rally to $2.64 and thereafter to $2.90.
This positive view will invalidate in the near term if the price turns down and breaks below $2.20.
The 4-hour chart shows that the pair is rising inside an ascending channel pattern. In the near term, the bears are trying to protect the $2.33 level but the bulls continue to attack the level with vigor.
If the $2.33 level gives way, the pair may start its journey toward the resistance line of the channel near $2.45. Alternatively, if the price once again turns down from $2.33, the bears will try to sink the pair to the support line of the channel.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
