Crypto analyst Scott Melker is tracking the key levels to watch for a group of the top altcoins by market cap.
Melker says that Cardano’s current price action is displaying directional uncertainty, but that the key level to watch is the $1.50 mark.
“ADA/USD – really really gross chart, really weird to look at. Not gross because it’s bad just a ton of sideways chop. Big move up, huge move down. All kinds of indecision, wicks all over the place – just a very hard chart to read. Still clear that the $1.50ish [level] is an important level.”
Concerning Ethereum, Melker says that the second-largest crypto asset by market cap has formed a complex inverse head and shoulders pattern and needs to surmount the resistance level just below $3,000 to ignite a fresh rally.
“We need to see a break of this resistance right here to start to feel bullish on Ethereum.
…You can see that based on the depth of this pattern this would ultimately be the target up here, around $4,133.”
In the case of Binance Coin (BNB), Melker says it is also forming a “complex inverse head and shoulders” pattern. The analyst predicts that the asset, which is currently trading at around $380, will face resistance at above $420.
“BNB/USD looks exactly like that ETH/USD chart that I showed before. Sort of a complex inverse head and shoulders. If it breaks out it would give us a target up in these areas somewhere right here and you can see that $423 will probably be a key resistance as well as this whole area around $500 up to like maybe $510, $520… something like that.”
As for Ripple’s native asset XRP, the analyst says he is bullish on the cryptocurrency as long as it can continue to trade above $0.79.
Turning to Dogecoin (DOGE), Melker says the meme coin’s recent recovery from slightly below $0.30 on Monday to above $0.40 is an indication of an upcoming breakout.
“This does look like a breakout and re-test. The problem is, yet again, no volume. But from a technical perspective one, two, three, four touches as resistance and then two touches now as support – that should theoretically head up all depending on what Bitcoin does.”
“UNI on the USD pair also bounced right into key support. It’s very hard to tell but looks like these are very bullish SFPs right here – three wicks that went below found liquidity and price moved up.”