Bitcoin (BTC) is experiencing some serious competition near the $58,000 mark, but that hasn't stopped some altcoins from hitting new all-time highs. This shows that traders are paying attention to the fundamental developments of individual coins.
One of the best-performing major altcoins of late is Avalanche (AVAX), which surged more than 120% in November. AVAX caught the attention of traders before accounting firm Deloitte announced plans to build a disaster relief platform on the Avalanche blockchain.
El Salvador’s President Nayib Bukele has announced the launch of Bitcoin City, which will be powered by geothermal energy and initially funded by $1 billion worth of Bitcoin bonds.
Can Strong Buying at Lower Levels Boost Bitcoin Above $60,000, Will Altcoins Participate in the Recovery? Let’s examine the charts of the top 5 cryptocurrencies that are likely to grab the attention of traders in the short term.
BTC/USDT
Bitcoin reversed direction from $55,600 on Nov. 19, but the recovery faced resistance at the 50-day simple moving average (SMA, $60,187). The moving averages are about to cross and the relative strength index (RSI) is in negative territory, suggesting that bears are making a strong comeback.
If the price turns down from current levels, the bears will attempt to extend the correction by pulling BTC/USDT below $55,600. If that happens, the next stop could be the strong support zone of $52,500 to $50,000.
If the price bounces off this area, the bulls will attempt to push BTC/USDT above the moving averages and the downtrend line. Such a move would suggest that the corrective phase may be over. The bulls will then attempt to push the price above the all-time high of $69,000.
Alternatively, a break below the psychological support at $50,000 could intensify selling as traders rush to exit. BTC/USDT could then drop to $45,000 and then to $40,000.
The 4-hour chart shows that the bears pulled the price below the strong support at $58,000, but they were unable to take advantage of it. The bulls bought the dips and pushed the price back above the 20-day exponential moving average (EMA).
If the price sustains above $58,000, BTC/USDT could rally towards the downtrend line. A breakout and close above this resistance could indicate that the bulls have the upper hand. Then, BTC/USDT could rise to $62,000 and then to $67,000.
Conversely, if the price turns down from current levels and breaks below $55,600, it will signal the possible start of a deeper correction.
AVAX/USDT
Avalanche is in a strong uptrend and has been making new highs for the past few days. The bulls pushed the price above the 200% Fibonacci extension level at $146.18 today, but the long impact on the day’s candlesticks shows profit-taking at higher levels.
The rising 20-day EMA (96) suggests bulls are in command, but the RSI around 80 suggests that the rally may be overheating in the short term. This could lead to a minor correction or consolidation in the coming days.
If the price turns down from current levels, $110 and the subsequent 20-day EMA could act as a strong support level. A sharp rebound from these two levels would indicate that bulls are viewing these dips as buying opportunities. AVAX/USDT could then head towards the 261.8% Fibonacci extension level at $175.58.
Contrary to this assumption, if the price breaks below the 20-day EMA, it will indicate that traders are rushing out. This could pull AVAX/USDT to $81.
AVAX/USDT has turned down from $147, indicating aggressive profit-taking at higher levels. The bears will now attempt to pull the price towards the 20-day EMA, which could act as a strong support.
If the price bounces off the 20-day EMA, it will indicate strong buying at low levels. The bulls will then attempt to resume the uptrend by pushing AVAX/USDT above $147.
Contrary to this assumption, if the price breaks below the 20-day EMA, selling could accelerate and AVAX/USDT could drop to $110. Such a move would suggest that the bulls may be losing their grip. Thereafter, AVAX/USDT may drop to the 50-day SMA.
MATIC/USDT
Polygon (MATIC) has been trading within an ascending channel pattern for the past few days. On October 28 and 29, the bulls pushed the price above the resistance line of the channel but failed to sustain the breakout. That could prompt short-term traders to sell.
On November 3, the bears again successfully defended the resistance line. This started a downside journey towards the channel's trendline. The descending 20-day EMA ($1.69) and the RSI just below the midpoint point to a slight advantage for the sellers.
If the price turns down from current levels, MATIC/USDT could fall to the trendline. Bulls are expected to defend this level aggressively. If the price bounces off the trendline and rises above the 20-day EMA, it will indicate that the selling pressure may decrease. This could signal the start of an upward move towards the resistance line.
Contrary to this assumption, if the bears sink the price below the trendline, it could result in a drop to the psychological support of $1.
The 4-hour chart shows that the bulls are attempting to rebound from the strong support zone of $1.50-$1.40. The 20-day EMA has started to turn up and the RSI is around the median, suggesting that selling pressure may be easing.
If the bulls push the price above $1.70, MATIC/USDT could rise to $1.80. A breakout and close above this level will indicate strength. Then MATIC/USDT may start to rise towards $2.15. On the downside, the selling could accelerate if the bears pull the price below $1.40.
EGLD/USDT
On Nov. 16-18, the bears attempted to pull EGLD below the $303.03 breakout level, but judging by the long wicks of the candles, the bulls bought on dips. Strong buying on November 19 pushed the price above the overhead resistance at $338.70.
This resumed the uptrend and EGLD/USDT has reached its pattern target around $427. The sharp rally pushed the RSI deep into overbought territory, suggesting that a minor consolidation or correction may be in sight.
The first support on the downside is the breakout level of $338.70 and then the 20-day EMA ($325). If the price bounces off these two levels, it will indicate that traders continue to buy on dips. The bulls will then attempt to resume the uptrend with $500 as the next target.
This positive view will be invalidated if the price turns lower and falls below the breakout level of $303.
The 4-hour chart shows that the bears are trying to stall the advance at $400, but the bulls are in no mood to relax. Continued buying at highs has pushed EGLDT/USDT above the psychological barrier. The rising 20-day EMA and the RSI in the overbought zone suggest that the bulls are firmly in command.
The first important level to watch on the downside is $380. If the bears pull the price below this support, EGLDT/USDT could drop to the 20-day EMA. A strong bounce off this support can keep the uptrend intact, but a break below it would suggest that the bullish momentum may be weakening.
MANA/USDT
Decentraland (MANA) turned lower from the 78.6% Fibonacci retracement level at $4.35 on Nov. 20. This suggests that traders may sell on rallies.
MANA/USDT could now drop to the $3.50 support and if this level gives way, the correction could deepen towards the 20-day EMA ($3.11). If the price bounces off these two support levels, it will indicate that market sentiment remains positive and traders are buying on dips.
The bulls will then attempt to push the price to $4.36. A break and close above this resistance could open the doors for a move to $4.94. This positive view will be invalidated if the price continues lower and breaks below the 20-day EMA.
MANA/USDT has been rising within an ascending channel formation. The failure of the bulls to push the price above the resistance line may prompt traders to sell, pulling the price below the 20-day EMA.
Both moving averages are flattening out and the RSI is sloping near the median, suggesting that the bullish momentum may be fading. MANA/USDT may now drop down to the channel's trendline, where buying could emerge.
If the price bounces off the trendline, MANA/USDT may continue upward within the channel. Buyers will then try to push the price to the resistance line. On a breakout and close above the channel, bullish momentum could pick up.
The specific allotment will be determined by the DAO through snapshot voting, subject to approval by counting votes. The proposed plan aims to distribute ARB to protocols within a 12-week timeframe, with any remaining funds slated to be returned to the DAO.
AlexBinance introduces $XAI on Arbitrum Layer 3, revolutionizing blockchain gaming with enhanced scalability, reduced gas fees, and reliable network performance.
BrianThe Arbitrum team personally participated in the first L3 based on Arbitrum Orbit - XAI, officially declaring war on Optimism.
JinseFinanceThis article is the technical interpretation of Arbitrum One by Luo Benben, former technical ambassador of Arbitrum and former co-founder of Goplus Security, a smart contract automation audit company.
JinseFinanceGolden Finance launches "Golden Web3.0 Daily" to provide you with the latest and fastest game, DeFi, DAO, NFT and Metaverse industry news.
JinseFinanceArticles or materials related to Layer 2 in the Chinese circle lack professional interpretation of Arbitrum and even OP Rollup. This article attempts to fill the gap in this field by popularizing the operating mechanism of Arbitrum.
JinseFinanceThus far, an overwhelming number of ARB holders have backed the proposal.
ClementArbitrum has taken center stage with its announcement of the airdrop of its native governance token on 23 March. What is Arbitrum, how does it work, and what does the airdrop entail?
Catherine