Connect with us

Hi, what are you looking for?

ELEVENEWS

Bitcoin

Four Cryptocurrencies to Watch Closely This Week – BTC, ADA, XMR, and NEO

The total crypto market cap has recovered from the September 6th lows close to $314 billion, but it is having a hard time staying above the $350 billion mark, suggesting that higher levels keep attracting sellers.

Bitcoin (BTC) dominance dropped from over 68 percent in mid-May to around 56 percent in the first half of this month as DeFi tokens started a powerful bull run. Still, in the last few days, the DeFi assets have seen keen corrections, and their instability has increased. This could likely shift traders’ focus back to Bitcoin.

It is also possible that BTC’s incompetence to stay above the $11,000 line would also be negatively affecting the confidence of altcoin and DeFi token traders.

Crypto market data daily view. Source Coin360 1024x511 - Four Cryptocurrencies to Watch Closely This Week - BTC, ADA, XMR, and NEO

At the moment, most major cryptocurrencies are not respecting a general trend as the price action has been mostly coin-specific. This has brought opportunities on both the short and long side. Therefore, this list contains four currencies worth watching this week.

BTC/USD

The relief rally in Bitcoin sees stiff resistance close to the 50 percent Fibonacci retracement level of $11,147.60. This suggests that the bears have used the current relief rally to launch short positions.

If the bears are able to drop the price below the uptrend level and the $10,625 support, it will show weakness. If the BTC/USD pair remains below $10,625, it will enhance the chance of a retest of $9,835.

Still, if the pair bounces off the $10,625 support drastically, it will be the first sign that the correction might be complete. Trading momentum is probably prone to pick up after the rally gets above the downtrend line.

If the price closes above the downtrend line, the chance of a rally to $12,460 enhances, and although there is resistance at $12,000, it seems probable that it will be crossed.

BTC USD daily chart. Source TradingView 1024x515 - Four Cryptocurrencies to Watch Closely This Week - BTC, ADA, XMR, and NEO

The pair is now trying to rebound off the uptrend level, which implies that the bulls bought the dip to this support. The purchasers will now try one more time to push the price above the $11,147.60 resistance.

If the rebound is not successful and the bears sink the pair below the uptrend line, a decrease towards $10,626 could happen. This is an important support for the bulls since selling is likely to strengthen if this level crashes. Also, if BTC/USD rebounds off $10,625, a few days of rangebound action is predictable – flattening moving average on the 4-hour chart implies an adjustment between supply and demand.

NEO/USD

NEO is now seeing steady resistance at $25.23, which shows that the bears are powerfully defending this resistance. Still, as the token is in an uptrend, traders are likely to consider the dips as a buying chance.

The immediate support on the downside is at $23 and below that at the 10-day simple moving average, which is $22.26. If the pair rebounds off both support lines, it will suggest that the bulls are not waiting for a more dramatic fall to purchase, which is a good sign.

If the bulls can lead the price above the $25.23 and $25.78 resistance zone, the uptrend is prone to resume. A break below the 10-day SMA will be the first sign that the momentum is getting weaker, and a drop below $20.96 will suggest a possible change in trend.

XMR/USD

The Monero rehabilitation from the September 5th low of $74.1012 has been dynamic, and the bulls have led the price back above the moving averages, which enhances the likelihood of the correction being over.

Still, the bears will probably not give up without a strong fight at the $97.46 resistance, and if the pair turns down drastically from the current levels and breaks below $84, a decrease to $74.1012 is feasible.

XMR USD daily chart. Source TradingView 1024x515 - Four Cryptocurrencies to Watch Closely This Week - BTC, ADA, XMR, and NEO

On the other hand, if the bulls can hold the next drop at the 20-day exponential moving average, which is $89, it will enhance the probability of a breakout of $97.4615. Above this resistance line, a move to $105.91 or even $107.37 is possible. 

ADA/USD

The relief rally in Cardano (ADA) from the dips of $0.0855982 on September 6th encountered a steady resistance at $0.0997444 on September 13th. The moving averages are dropping, which implies that the bears are in command.

In a downtrend, the bears appear short on pullbacks to resistance lines as that enhances the danger to reward ratio of the trade. At the moment, if bears can dip the ADA/USD pair below the $0.0855982 support level, the decline might recommence.

Traders can take into consideration positions on the short side with a proper stop-loss to take advantage of the likely down move. The next support on the downside is at $0.074, but if this support line cannot hold, the price decrease can go all the way to $0.05.

The bearish perspective will be annulled if the pair rebounds off $0.0855982, and the bulls lead the price above $0.10 – this type of move will show that the downtrend might be over.

News Source

Advertisement

Copyright © 2020 Elevenews