LTC, XMR, AAVE, and MKR bullish as Bitcoin stalls below $31K.

Bitcoin (BTC) has been trading within a narrow range for the past few days, but that does not diminish the impressive 84% rally it has experienced in 2023. The strong recovery in Bitcoin’s price has also led to increased buying in several alternative coins, which have risen significantly from their lows this year.

As the second half of the year begins, the central question on every investor’s mind is: Will the rally continue? Data from CoinGlass shows that July has only seen three negative monthly closes since 2013, with the largest decline being 9.69% in 2014. This suggests that the bulls have a slight advantage.

A significant part of the recent rally in Bitcoin and alternative coins has been fueled by hopes that the United States Securities and Exchange Commission will approve one or more applications for a spot Bitcoin exchange-traded fund. Any negative news on this front could turn sentiment bearish and result in a sharp sell-off.

However, for now, Bitcoin and select alternative coins are showing strength. Let’s analyze the charts of the top five cryptocurrencies that may continue their upward movement over the next few days.

Bitcoin price analysis

Bitcoin (BTC) continues to trade near the strong overhead resistance at $31,000. This suggests that the bulls are not in a hurry to take profits, as they expect another upward movement.

Typically, a tight consolidation near a crucial overhead resistance resolves to the upside. The rising 20-day exponential moving average (EMA) ($29,278) and the positive relative strength index (RSI) indicate that the path of least resistance is to the upside.

If the bulls push and sustain the price above $31,000, the BTC/USDT pair is likely to start the next leg of the uptrend. The bullish momentum could propel the price above the immediate resistance at $32,400. If that happens, the pair may continue its upward movement towards $40,000.

If the bears want to make a comeback, they will need to push and sustain the price below the 20-day EMA. In that case, the pair could slide towards the 50-day simple moving average (SMA) ($27,622).

Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. The price has been stuck between $31,431 and $29,500 for some time.

Buyers will need to drive and sustain the price above the $31,431 hurdle to signal the resumption of the upward movement. Alternatively, a break and close below the $29,500 support could initiate a deeper correction towards $27,500.

Litecoin price analysis

Litecoin (LTC) skyrocketed above the descending channel and the overhead resistance at $106 on June 30, indicating a resumption of the upward trend.

The bears pulled the price back below the breakout level of $106 on July 1, but the bulls bought the dip. If buyers can sustain the price above $106, it increases the likelihood of continued rally. The LTC/USDT pair could then surge towards the overhead resistance zone between $134 and $144.

On the other hand, if the price slips and sustains below $106, it would signal that bears are selling at higher levels. This could push the price down to the psychological level of $100 and then to the breakout level from the channel.

The four-hour chart shows that bears are trying hard to defend the $112 level, but they are struggling to keep the price below $106. This suggests that the bulls are buying at lower levels. The rising 20-EMA and the RSI in the overbought territory indicate that buyers have the advantage.

If the price stays above $112, the pair may begin the next leg of the uptrend towards $126. The first support on the downside is at the 20-EMA and then at $98.

Monero price analysis

Monero (XMR) rose and closed above the downtrend line on June 23, invalidating the developing descending triangle pattern.

The failure of a bearish pattern is typically a positive sign, as it traps several aggressive bears, resulting in a short squeeze. That could be seen in the XMR/USDT pair, which surged from $150 on June 23 to $171 on June 27.

Following the sharp rally, the price has been oscillating between $171 and $160 for the past few days. The consolidation is a positive sign, as it shows that the bulls are holding on to their positions as they anticipate another leg higher.

If buyers push the price above $171, the pair may start the next leg of the up-move. The pair may then skyrocket to $187. The bears will have to sink the price back below the 50-day SMA ($149) to seize control.

The four-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation pattern. If buyers push and sustain the price above the triangle, it will suggest that the uncertainty between the bulls and the bears has resolved in favor of the buyers. That could signal the resumption of the up-move. The pattern target of this setup is $182.

This positive view will be invalidated in the near term if the price turns down and plummets below the triangle. The pair could then plunge to $148.

Related: Why is Litecoin price up today?

Aave price analysis

Aave (AAVE) has been trading inside a descending channel pattern for the past several weeks. The price turned down from the resistance line of the channel on June 25, but the bulls arrested the correction at the 20-day EMA ($61.69).

This suggests a change in sentiment from selling on rallies to buying on dips. The price has again reached the resistance line. The repeated retest of a resistance level within a short interval tends to weaken it.

The rising 20-day EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers propel and sustain the price above the channel, the AAVE/USDT pair could start a new up-move toward $84.

The 20-day EMA remains the important support to watch on the downside. A break and close below this level will suggest that the pair may spend some more time inside the channel.

Both moving averages are sloping up on the four-hour chart and the RSI is in the positive territory, indicating that buyers are in control. If bulls flip the downtrend line into support, the pair may rise to $76.

Alternatively, if the price sinks and sustains below the downtrend line, it will signal that bears remain active at higher levels. The pair may then slump to the moving averages. A break below the 50-SMA may open the doors for a possible drop to $62 and then to $58.

Maker price analysis

Maker’s MKR (MKR) is attempting to start an up-move. The bulls purchased the dip to the moving averages between June 24 and 28, indicating demand at lower levels.

The 20-day EMA ($725) has turned up and the RSI is in the overbought territory, indicating that bulls have the upper hand. Buyers pushed the price above the downtrend line on July 2 but the long wick on the candlestick shows strong selling at higher levels.

A minor positive in favor of the buyers is that they have held their ground. This enhances the prospects of a rally above the downtrend line. If that happens, the MKR/USDT pair may soar toward $979. The first sign of weakness will be a drop below $772. That could start a deeper correction toward the 20-day EMA.

The pair closed above the downtrend line, but the rally is facing selling at higher levels. The bears are trying to trap the aggressive bulls by pulling the price back below the downtrend line. If they do that, the pair could descend to the 20-EMA. This remains the key level to watch out for because a break below it will tilt the advantage in favor of the bears.

Contrarily, if the price turns up from the current level and breaks above $900, it will suggest that bulls have flipped the downtrend line into support. That could start a rally to $941.

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