LTC, XMR, AAVE, and MKR turn bullish as Bitcoin stalls under $31K

The recent trading of Bitcoin (BTC) in a limited range has not affected its remarkable 84% surge in 2023. This strong resurgence in Bitcoin’s value has caused a surge in purchasing of multiple altcoins, which have increased significantly from their yearly lows.

As the latter part of the year kicks off, the primary concern for all investors is whether the rally will persist? Data from CoinGlass reveals that since 2013, July has only had three negative monthly finishes with the biggest decrease being 9.69% in 2014. This implies that the bulls are likely to have a slight advantage.

A major impetus behind the most recent surge in Bitcoin and altcoin prices was the optimism that the U.S. Securities and Exchange Commission would grant approval to one or more applications for a Bitcoin exchange-traded fund. If there is any unfavorable news in this regard, sentiment could quickly become bearish, leading to a steep sell-off.

Nevertheless, Bitcoin and some altcoins are currently demonstrating strength. Let us examine the graphs of the top 5 cryptos that may keep appreciating over the upcoming days.

Bitcoin price analysis

Bitcoin trading remains close to the strong resistance at $31,000, indicating that the buyers are not in a rush to take profits as they expect the value to rise further.

Usually, when there is a tight consolidation near a critical overhead resistance, the outcome is a move to the upside. The 20-day exponential moving average ($29,278) increasing and the relative strength index (RSI) being in the positive range suggest that the path of least resistance is up.

Should bulls drive and maintain the price higher than $31,000, the BTC/USDT pair could initiate the next uptrend. The bullish energy could possibly push the price above the close resistance at $32,400. If this occurs, the pair may proceed its upward journey towards $40,000.

If bears are hoping for a resurgence, they must ensure that the price stays below the 20-day exponential moving average. This could lead to a drop to the 50-day simple moving average ($27,622).

The two moving averages appear to have leveled off and the RSI is close to the midpoint, demonstrating an equilibrium between buyers and sellers. The cost has been in a range between $31,431 and $29,500 for a while now.

Buyers must propel the price above the $31,431 barrier to demonstrate the revival of the upward trend. On the other hand, a breach and closure below the $29,500 backing could initiate a more severe correction towards $27,500.

Litecoin price analysis

Litecoin (LTC) experienced a dramatic surge above the descending channel and the $106 resistance level on June 30, signifying the revival of the uptrend.

The bears pulled the price back beneath the $106 threshold on July 1, but the bulls took advantage of the dip. If buyers can keep the price above $106, there is a greater chance of the rally continuing. If that happens, the LTC/USDT pair could rise to the resistance zone between $134 and $144.

Contrary to this belief, if the price drops and remains below $106, it will indicate that bears are selling at higher prices. This could cause the price to fall to the psychological threshold of $100 and then to the level where it broke out of the channel.

The 4-hour chart indicates that the bears are attempting to keep the $112 price level intact but are having difficulty keeping the price below $106, indicating that the bulls are buying at lower levels. The 20-EMA is increasing and the RSI is in the overbought range, suggesting that the buyers are in control.

Should the price remain above $112, the pair could begin the next stage of the uptrend towards $126. The initial support on the downside is at the 20-EMA and then at $98.

Monero price analysis

On June 23, Monero (XMR) experienced an increase in value that resulted in it closing above the downtrend line, thus eliminating the forming descending triangle pattern.

The unsuccessful formation of a bearish pattern is usually a good indication, as it ensnares numerous forceful bears, leading to a short squeeze. This could be observed in the XMR/USDT pair, which rose from $150 on June 23 to $171 on June 27.

Following the strong surge, the cost has fluctuated between $171 and $160 over the last few days. The consolidation is a good indication as it suggests that the bulls are maintaining their positions in expectation of another rise.

Should purchasers drive the cost higher than $171, the pair may initiate the next stage of the upward trend. This could result in the pair skyrocketing to $187. The bears would need to reduce the price below the 50-day simple moving average ($149) to take control.

The 4-hour chart displays the formation of a symmetrical triangle, usually seen as a continuation pattern. If buyers can propel and maintain the price above the triangle, it implies that the stalemate between the bulls and the bears has been broken in favor of the buyers, which could be interpreted as the start of an upward trend. The pattern target of this setup is estimated at $182.

This optimistic outlook may be rendered invalid in the near future if the price drops significantly below the triangle. The pair could then drop to $148.

What is causing the increase in Litecoin’s price today?

Aave price analysis

For the past several weeks, Aave (AAVE) has been trading within a descending channel pattern. On June 25, the price declined from the channel’s resistance level, however, the bulls managed to stop the correction at the 20-day EMA ($61.69).

This indicates a shift in sentiment from taking advantage of price increases to taking advantage of declines. The price has once more reached the resistance line. The recurring testing of a resistance level in a short time span tends to weaken it.

The 20-day EMA and the RSI being in positive territory suggest that the most likely direction is upwards. If buyers can push and maintain the price above the channel, it is likely that the AAVE/USDT pair will initiate an upward move towards $84.

The 20-day EMA is still an important support level to observe. If the pair breaks and closes below this level, it could indicate that it will stay in the channel for a longer period.

The 4-hour chart shows both moving averages sloping upwards and the RSI in the positive range, suggesting that buyers are in the driver’s seat. Should bulls be able to transform the downtrend line into a support line, the pair could potentially increase to $76.

Alternatively, if the cost persists below the descending trend line, it will suggest that bears are still in control at higher levels. The pair could then decrease to the moving averages. If it drops beneath the 50-SMA, it could lead to a potential decline to $62 and then $58.

Maker price analysis

MKR is attempting to initiate an upward trend. During the period between June 24 and 28, buyers bought the dip to the moving averages, indicating an interest in buying at lower prices.

The 20-day exponential moving average ($725) has reversed its direction upwards and the relative strength index is in the overbought range, suggesting that bulls are in control. On July 2, buyers managed to drive the price beyond the downtrend line; however, the long wick on the candlestick displays notable selling at higher prices.

The buyers have remained firm, which is a slight advantage for them. If this continues, the MKR/USDT pair could jump to $979 above the downtrend line. If it drops below $772, it could signal the beginning of a larger decline towards the 20-day EMA.

The pair rose above the downtrend line, but the rally is facing resistance at higher levels. The bears are attempting to ensnare the bullish traders by pushing the price back below the downtrend line. If successful, the pair could drop to the 20-EMA. This is the key level to observe as a break below it will give the bears the upper hand.

On the other hand, if the price increases from its current level and surpasses $900, it would indicate that the bears have changed the downtrend line into a support. This could potentially initiate a surge to $941.

Categorized in:

Tagged in: