Crypto prices reach new heights as Bitcoin cracks $30K, possibly setting the stage for SOL, LINK, AAVE and STX.
Bitcoin price cracks $30K, possibly clearing a path for SOL, LINK, AAVE and STX

Bitcoin (BTC) had an excellent week, with prices rising by around 10% to reach the psychologically significant level of $30,000. After the rally, the question on investors’ minds is whether the uptrend will continue or if a reversal is due.

The trading team Stockmoney Lizards recently stated that Bitcoin may soon break above its overhead resistance and start a sharp rally. They believe that the approval of the exchange-traded fund will drive mass adoption and trigger the rally before the halving due in April 2024.

A positive development this week was that Bitcoin’s strength rubbed off on several altcoins, which surged above their respective overhead resistance levels. This suggests that the sentiment is gradually becoming more positive and that it may be time to consider buying selectively.

Typically, the coins that lead the markets higher are the ones that tend to do well. Laggards are generally the last to perform, so they could be avoided initially.

Let’s look at the charts of the top-5 cryptocurrencies that may outperform in the near term, such as Chainlink crypto today.

Bitcoin price analysis

The bulls and the bears are locked in a battle near the $30,000 mark in the crypto market, but the buyers have not ceded much ground.

The consolidation at this level suggests that the bulls are not in a rush to take profits as they are expecting another surge. This could take the price to the resistance zone between $31,000 and $32,400.

However, if the price turns down from $31,000, the BTC/USDT pair could drop to the 20-day exponential moving average ($28,160). If the price recovers from this level, the bulls will try to break the overhead resistance again.

The positive sentiment will be quashed if the price falls below the 20-day EMA. This could keep the chainlink crypto today pair stuck in the range of $31,000 to $24,800 for some more time.

The pair is in an uptrend as seen on the 4-hour chart. Usually, during an uptrend, traders buy the dip to the 20-EMA. If this happens, it will show that the sentiment is still bullish and every minor dip is being bought. The pair may then continue its journey towards $32,400.

On the contrary, if the price slips below the 20-EMA, it will show that the traders may be closing their positions quickly. This could lead to a further decline to the important support at $28,143.

Solana price analysis

On Oct. 19, Solana (SOL) broke out of the neckline, completing a bullish inverse head and shoulders pattern that has a target objective of $32.81.

The RSI is overbought, so a correction is possible. The key support to watch is $27.12. A strong bounce off this level will show that the bulls have flipped it into support, which will increase the chances of the uptrend continuing. If the SOL/USDT pair rises above $32.81, it could hit $39.

The bears are running out of time to stop the up-move. If they want to do so, they must drag the price back below $27.12. This is the main level to keep an eye on, as a drop below it would indicate that the break above $27.12 may have been a fake-out.

The 4-hour chart shows that the bulls are facing strong resistance near $30. This could trigger a pullback to the breakout level of $27.12. Buyers are expected to defend this level. If it rebounds, the up-move could resume.

Alternatively, if the price turns down and breaks below $27.12, it will show that the bears are selling heavily at higher levels. The pair may then plunge to the neckline near $24.50, which could cause the crypto of the week to rally.

Chainlink price analysis

Since May 2022, Chainlink (LINK) has been trading in a tight range between $5.50 and $9.50, indicating an equilibrium between supply and demand.

On Oct. 22, the bulls attempted to break out of the range to the upside, but the long wick on the candlestick shows that the bears are not willing to give up. If the bulls can hold their ground, it could lead to a rally above $9.50 and possibly reach the pattern target of $13.50.

The LINK/USDT pair could surge as high as $15 and even $18. The first support on the downside is at $8.50. If the price dips below this level, it may suggest that the range-bound crypto action would persist.

The pair experienced a rapid surge from $7.50, pushing the RSI deep into the overbought zone on the 4-hour chart. This suggests that the rally is overextended in the short-term and could result in a pullback or consolidation.

The solid support on the downside is $8.75 and then $8.50. If the price bounces off this zone, it will suggest that sentiment remains positive and traders are buying on dips, increasing the chances of a retest of $9.75.

Conversely, a break below the 20-EMA will signal that the bears are back in the crypto game and the pair may drop to $7.

Aave price analysis

On Oct. 21, Aave (AAVE) invalidated the bearish descending triangle setup by rising above the downtrend line, which usually signals a bullish move. The 50-day simple moving average ($62) and the other moving averages have started to turn up while the RSI is in the overbought territory, suggesting that the bulls are in control. If the price holds above the downtrend line, the AAVE/USDT pair could surge to $88 and then to $95.

The bears will need to act quickly in order to prevent this up-move and drag the price back below the downtrend line. That could trap some aggressive bulls and start a correction to the moving averages.

The 4-hour chart shows that the bears attempted to stop the relief rally at the downtrend line but the bulls didn’t give up much ground. The momentum picked up and the pair is now heading higher towards $88. Although the RSI is in the overbought region, a minor pullback or consolidation is possible.

In case of a dip, the first support is at $72. The bears will have to push the price below the downtrend line to take back the crypto game from the bulls.

Stacks price analysis

Stacks (STX) has seen a notable rise in the past few days, suggesting that the bulls are attempting to initiate a new uptrend.

The bullish crossover on the moving averages indicates that the bulls have the edge. In the short term, the overbought levels on the RSI suggest that a minor correction or consolidation is possible. The first support on the downside is the 20-day EMA ($0.54).

If the crypto rebounds off this level, it will signify a shift in sentiment from selling on rallies to buying on dips. This will increase the probability of the up-move continuing. The STX/USDT pair could then first rise to $0.80 and subsequently to $0.90.

This positive outlook will be invalidated in the near term if the price turns down and plummets below the 20-day EMA.

The crypto has been consolidating in a tight range between $0.61 and $0.65 as seen on the 4-hour chart. This is a positive sign as it shows the bulls are not rushing to the exit as they anticipate another leg higher. If buyers drive the price above $0.65, the pair will try to rally to $0.68 and then to $0.75.

Contrary to this assumption, if the crypto turns down and breaks below the 20-EMA, it will signify profit-booking by short-term traders. The pair may then plunge to the 50-SMA.

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