Toncoin

Watch these 5 cryptocurrencies for a potential price rebound next week

Bitcoin is trying to sustain above $20,000 and if it succeeds, ETH, MATIC, TON and OKB may witness a strong recovery.

Traders dumped risky assets following the crisis and failure of Silicon Valley Bank. The S&P 500 Index plunged 4.55% while Bitcoin (BTC) is down about 9% this week.

The collapse of SVB led to a crisis in the crypto space, with USD Coin (USDC) losing its peg to the U.S. dollar on reports that $3.3 billion of Circle’s $40 billion of USDC reserves were held with SVB. After trading near $0.87 on March 11, USDC has climbed up above $0.96 at the time of publication.

SVB’s failure has increased uncertainty in the short term, with investors closely watching for any signs of the contagion spreading to other regional banks across the United States.

*Crypto market data daily view. Source:* *Coin360*

During times of uncertainty, it is best to stay on the sidelines. However, if there is no domino effect following SVB’s debacle, select cryptocurrencies may start their recovery. The cryptocurrencies selected in the article are all trading above the 200-day simple moving average, a key level watched by long-term investors to determine whether the asset is in a bull or bear phase.

Let’s study the charts of Bitcoin and the four altcoins that may outperform if the sector witnesses a recovery over the next few days.

BTC price

Bitcoin has corrected back to the 200-day SMA ($20,389). Buyers are expected to defend the level with all their might because a break below it could intensify selling.

*BTC/USDT daily chart. Source: TradingView*

On the way up, the 20-day exponential moving average ($22,042) is likely to act as a major hurdle. If the price turns down sharply from the 20-day EMA, the BTC/USDT pair may retest the support at the 200-day SMA. If this level cracks, the pair may slide to $18,400 and then to $16,300.

If bulls want to prevent the decline, they will have to drive the price above the 20-day EMA. If they manage to do that, the pair may pick up momentum and soar toward the overhead resistance at $25,250.

*BTC/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bulls are attempting to start a recovery from $19,550 but the bears are aggressively defending the 20-EMA. If the price turns down from the current level, the bears will again try to sink the pair below $19,950. If they succeed, the pair could fall to $18,400.

Contrarily, if the price turns up and breaks above the 20-EMA, it will suggest that the short-term selling pressure may be reducing. That may start a recovery to $21,480 where the bears will again pose a strong challenge. If this level is scaled, the pair may reach $22,800.

ETH/USDT

Ether (ETH) dipped below the 200-day SMA ($1,421) on March 10 but the long tail on the day’s candlestick shows solid buying at lower levels.

The recovery is facing resistance near $1,461. If the price turns down from the current level and reaches the 200-day SMA, it will signal that bears are selling on a shallow bounce. That will increase the likelihood of a drop below $1,352. The ETH/USDT pair could then slide to $1,100.

If bulls want to prevent the decline, they will have to thrust the price above the 20-day EMA ($1,548). If they do that, the pair could rise to $1,743 where the bears may again erect a strong barrier. A break above this level will open the doors for a possible rise to $2,000.

*ETH/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair is attempting a rebound. The 20-EMA is flattening out and the relative strength index (RSI) is just below the midpoint, indicating a balance between supply and demand.

This balance will tilt in favor of the buyers if they push and sustain the price above $1,500. If they do that, the relief rally may reach $1,600. On the other hand, if the price turns down and breaks below the uptrend line, the advantage may tilt in favor of the bears. The pair may then retest the strong support at $1,352.

MATIC/USDT

Polygon (MATIC) corrected sharply from $1.56 on Feb. 18 and reached the 200-day SMA ($0.94) on March 10. The long tail on the day’s candlestick shows that the bulls are fiercely defending the level.

The bulls will try to push the price to the 20-day EMA ($1.15) where the bears are likely to mount a strong defense. If the price turns down from this level, it will suggest that the sentiment remains negative and traders are selling on rallies.

That could increase the prospects of a drop below the 200-day SMA. If that happens, the MATIC/USDT pair might slump to $0.69.

Conversely, if buyers propel the price above the 20-day EMA, it will suggest that the bulls are back in the driver’s seat. The pair could then rise to the overhead resistance at $1.30.

*MATIC/USDT 4-hour chart. Source: TradingView*

The recovery from $0.94 has reached the 20-EMA. This is an important level to keep an eye on because if the price sustains above it, the pair may rally to $1.15.

This level may again act as a strong resistance but if bulls arrest the next decline above $1.05, it will suggest that the downtrend could be over. That may open the gates for a possible rise to $1.30.

This positive view will invalidate in the near term if the price turns down and breaks below the $0.94 support.

TON/USDT

While most major cryptocurrencies have fallen to or below their 200-day SMA, Toncoin (TON) is still way above the level. This suggests that traders are not rushing to the exit.

The TON/USDT pair has formed a symmetrical triangle pattern near the local high. The price action inside the triangle is random and volatile.

Typically, the triangle acts as a continuation pattern. That means the trend that was in force before the formation of the setup resumes. In this case, if buyers kick the price above the resistance line of the triangle, the pair may start a move toward $2.90.

Conversely, if the price continues lower and plummets below the triangle and the 200-day SMA ($1.90), it will suggest that bears are in command. That may pull the price toward $1.30. Such a move will indicate that the triangle behaved as a reversal setup.

*TON/USDT 4-hour chart. Source: TradingView*

The downsloping 20-EMA and the RSI in the negative territory on the four-hour chart show that bears have the upper hand. If the price turns down from the current level and breaks below $2.18, the drop is likely to extend to $2.

Contrarily, if bulls drive and sustain the price above the 20-EMA, it will suggest that bulls are attempting a comeback. The pair may then rise to $2.45 where the bears may mount a strong defense. If this level is crossed, the bulls try to pierce the triangle near $2.50.

OKB/USDT

OKB (OKB) is in a corrective phase but a minor positive in favor of the bulls is that it is way above its 200-day SMA ($26).

The next support on the downside is the 50% Fibonacci retracement level of $36.13 and then the 61.8% retracement level of $30.76. The bulls are likely to protect this zone with all their might.

If the price turns up from this zone, the OKB/USDT pair may rise to the 20-day EMA ($45.48). This is an important level to keep an eye on because a break and close above it will signal that the corrective phase may be over.

On the other hand, if the price slips below $30.76, it will suggest that traders are rushing to the exit. The pair may then plunge to the 200-day SMA.

*OKB/USDT 4-hour chart. Source: TradingView*

The downsloping 20-EMA and the RSI in the negative territory on the four-hour chart suggest that bears have the upper hand. There is minor support near $37.50 but if it gives way, the pair may reach $36.13.

On the contrary, if the price turns up and breaks above the 20-EMA, it will suggest that bulls are trying to regain control. The pair may then rise to $44.35. This is an important resistance for the bears to guard because if it gets taken out, the price could reach $50.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin and these 4 altcoins are showing bullish signs

Bitcoin’s volatility could soon pick up and that may boost buying interest in ETH, TON, XMR and OKB.

Cryptocurrency markets lack any signs of volatility going into the year-end holiday season. This suggests that both the bulls and the bears are playing it safe and are not waging large bets due to the uncertainty regarding the next directional move. This indecisive phase is unlikely to continue for long because periods of low volatility are generally followed by an increase in volatility.

Willy Woo, creator of on-chain analytics resource Woobull, anticipates that the duration of the current bear market may “be longer than 2018 but shorter than 2015.”

The crypto winter has resulted in a loss of more than $116 billion to the personal equity of 17 investors and founders in the cryptocurrency space, according to estimates by Forbes. The carnage has been so severe that the names of 10 investors were removed from the crypto billionaire list.

Could the bear market deepen further or is it showing signs of starting a relief rally? Let’s look at the charts of Bitcoin (BTC) and select altcoins to find out.

BTC/USDT

Bitcoin has been trading in a tight range near the 20-day exponential moving average (EMA) of $16,929 for the past few days. This indicates that the bears are defending the level, but the bulls have not given up yet.

This period of calm is unlikely to continue for long and the BTC/Tether (USDT) pair may soon witness a range expansion. Generally, it is difficult to predict the direction of the breakout, hence it is better to wait for the pair to make a decisive move before initiating directional bets.

If the price breaks above the moving averages, the likelihood of a rally to the overhead resistance at $18,388 increases. This level may again act as a major roadblock, but if the bulls force their way through, the momentum could pick up and the pair could rally to $20,000.

On the way down, a break below $16,256 could signal that bears are in control. The sellers will then attempt to sink the pair to the vital support at $15,476.

Both moving averages on the 4-hour chart have flattened out and the relative strength index (RSI) is just below the center. This suggests a range-bound action in the near term. The boundaries of the range could be $17,061 on the upside and $16,256 on the downside.

A break above $17,061 will indicate that the bulls have come out on top and that could start a short-term up-move. On the other hand, a slump below $16,256 will suggest that the bears have strengthened their hold.

ETH/USDT

Ether (ETH) has been clinging to the 20-day EMA of $1,228 for the past few days. This suggests that traders expect a break above this overhead resistance.

The 20-day EMA is flattening out and the RSI is just below the midpoint, suggesting equilibrium between buyers and sellers. If the bulls thrust the price above the moving averages, the ETH/USDT pair could attract further buying. The pair could then rally to $1,352 and later to the downtrend line. This level could again act as a formidable resistance.

On the contrary, if the price fails to break above the moving averages, several short-term traders may sell aggressively. That could pull the price to the strong support at $1,150. If this level gives way, a head-and-shoulders pattern may be complete. That could clear the path for a potential drop to $1,075 and then $948.

The 4-hour chart shows that the recovery is facing resistance in the zone between the 38.2% Fibonacci retracement level of $1,227 and the 50% retracement level of $1,251. If the price turns down and breaks below $1,180, the pair could retest the important support at $1,150.

Conversely, if the price turns up and breaks above $1,251, the rally could reach the 61.8% retracement level of $1,275. If the bulls manage to clear this obstacle, the pair may complete a 100% retracement and soar to $1,352.

TON/USDT

Toncoin (TON) has been consolidating in an uptrend for the past few days. Although the bears have stalled the up-move at $2.90, a minor positive is that the bulls have not given up much ground. This suggests buying on dips.

The rising 20-day EMA of $2.25 and the RSI in the positive territory indicate that th bulls have the upper hand. If buyers push the price above $2.50, the TON/USDT pair could rise to $2.65 and then retest at $2.90.

The bears are likely to have other plans as they will try to yank the price below the 20-day EMA and strengthen their position. There is minor support at $2.15 but if that fails to hold, the pair may plummet to the 50-day simple moving average (SMA) of $1.91.

The pair has formed a symmetrical triangle on the 4-hour chart. This indicates indecision between the bulls and the bears. The flattish moving averages and the RSI near the midpoint also do not give a clear advantage to anyone.

The first sign of strength will be a break and close above the resistance line of the triangle. That could start a rally to $2.90. If this level is scaled, the up-move could reach the pattern target of $3.24.

If the price turns down from the 50-SMA or the resistance line of the triangle, it will suggest that the pair may extend its stay inside the triangle. A break below the support line could indicate that the bears are back in control.

XMR/USDT

Monero (XMR) has failed to rise above the resistance line of the falling wedge pattern in the past few days, but a positive sign is that the bulls are trying to hold the price above the 50-day SMA of $140.

The moving averages have flattened out and the RSI is near the center. This indicates a balance between supply and demand. If the price breaks above the 20-day EMA of $144, buyers will try to gain the upper hand by pushing the XMR/USDT pair above the wedge. If that happens, the pair could rally to $174. A break above this level could signal a potential trend change.

On the other hand, if the price slumps below $138, the advantage could tilt in favor of the bears. The pair could then plummet to $125.

*XMR/USDT 4-hour chart. Source: TradingView*

The pair rebounded off the strong support at $138.50 and the bulls are trying to push the price above the moving averages. If they succeed, the pair could rise to the downtrend line, where the bears may again mount a strong defense.

If the price turns lower from the downtrend line, the bears will try to pull the pair to $138.50. This is an important level to keep an eye on in the near term because a break below it could complete a descending triangle pattern. The pair could then tumble to $132 and thereafter to the pattern target of $124.

On the upside, a break above the downtrend line could invalidate the bearish setup and clear the path for a possible rally to $153.

OKB/USDT

Centralized Cryptocurrency exchanges have been in the eye of the storm since the collapse of FTX but OKB (OKB) is close to completing a bullish reversal pattern. That is the reason for its selection to the list.

The OKB/USDT pair has formed a large inverse head-and-shoulders pattern, which will complete on a break and close above $23.22. Both moving averages are sloping up and the RSI is in the positive territory, indicating the path of least resistance is to the upside.

If the price rises above the psychological level of $25, the pair could start a new up-move to $28 and then $31. The pattern target of the reversal formation is $36. This positive view could invalidate if the price turns down from the current level and plummets below the moving averages. The pair could then drop to $17.

The pair has formed an ascending triangle pattern on the 4-hour chart. This bullish setup will complete on a break and close above $24.15. If that happens, the pair could start a new up-move toward the pattern target of $31.

Alternatively, if the price turns down and breaks below the triangle, it will invalidate the bullish setup. That could trigger stops of aggressive buyers who may have taken long positions in anticipation of a breakout. The pair could then slide to $20.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

5 cryptocurrencies to keep an eye on in 2023

Analysts expect the bear market to loosen its grip in 2023. Here are five cryptocurrencies to keep an eye on.

It has been a tumultuous year for the crypto investors who have witnessed the total crypto market capitalization tumble from about $2.2 trillion at the beginning of 2022 to about $850 billion in December. The sharp erosion in valuation was caused due to several high-profile bankruptcies in 2022.

The entire Terra ecosystem imploded with the collapse of its LUNA token and TerraUSD (UST) stablecoin. The failure of Three Arrows Capital followed this black swan event, and the final blow came as FTX underwent a bank run and imploded. These back-to-back events triggered a liquidity and credit crunch and appear to have caused the most damage to the crypto industry.

A prolonged bear market tends to test investors’ patience, but it offers one of the best opportunities to buy fundamentally sound cryptocurrencies at lower levels. Smart investors who can go against the herd and invest during periods of panic tend to benefit the most when the trend eventually turns.

While a bear market is a great time to build a portfolio, traders tend to make the mistake of buying the coins that have fallen the most in the hope that they will recover to their previous glory. Most times that does not happen because every bull market has a new set of leaders. Generally, the ones that are resilient during the fall or recover quickly from the bottom tend to lead on the way up.

Let’s look at five cryptocurrencies that are showing promise for 2023.

BTC/USDT

The broader cryptocurrency market is unlikely to start a new bull phase until Bitcoin (BTC) stages a turnaround. Although Bitcoin has been in a strong downtrend for the past several months, the relative strength index (RSI) is forming a positive divergence, indicating that the bearish momentum may be weakening.

However, a positive divergence must have favorable price action to confirm a trend change.

The first sign of strength will be a break and close above the 20-week exponential moving average (EMA) of $19,870. The BTC/USDT pair could rally to $25,211, where the bears may mount a strong defense again.

If the price turns down from this level, then rebounds off the 20-week EMA, it will signal a change in sentiment from selling on rallies to buying on dips. That could increase the possibility of a break above $25,211.

The pair could then rise to the 50-week simple moving average (SMA) of $28,156. This remains the key level for the bears to defend because a break above it could suggest the start of a new uptrend. Bears may face a minor hurdle near $32,400, but that is likely to be crossed, and the pair could rise to $50,000.

However, the downtrend could resume if the price turns down from the current level or the 20-week EMA and breaks below $15,476. The next major support on the downside is $12,500 and $10,000.

The pair has been trading below the breakdown level of $17,622 for several days, but bears have failed to take advantage and resume the downtrend. This suggests that selling dries up at lower levels.

The 20-day EMA ($17,021) has flattened out and the RSI is near the midpoint, indicating that the bears may be losing their grip.

If buyers thrust the price above the overhead resistance, it will signal a potential trend change. A confirmation will happen after bulls flip the $17,622 level into support. That could lay the groundwork for a rally to $25,211.

ETH/USDT

Ether (ETH) has been in a strong downtrend, but a minor positive is that it is finding support near the psychological level of $1,000. The repeated rallies to the 20-week EMA ($1,428) also indicate sporadic buying by the bulls.

Although three rallies in the past few weeks have faced rejection at the 20-week EMA, the bears have failed to pull the ETH/USDT pair to the June low of $881, suggesting traders are buying the dips.

If bulls push and sustain the price above the 20-week EMA, several bears may cover their short positions. That could result in a rally to the overhead resistance at $2,030. The 50-week SMA ($1,977) is nearby; hence, this level may be a major obstacle for the bulls.

If buyers propel the price above $2,030, the pair will complete a double bottom pattern. This reversal setup has a target objective of $3,200, but the rally could extend to $3,600. The zone between $3,600 and $4,000 could prove to be a major barrier for the bulls.

If bears want to invalidate this bullish view, they will have to sink and sustain the price below $881.

The pair has been trading inside a descending channel pattern, but with the 20-day EMA ($1,255) flattening out, the RSI is near the midpoint. This suggests that the buyers are attempting a comeback.

If bulls push the price above the 50-day SMA ($1,326), the pair could rise to the resistance line of the channel. This is the key level to watch out for because a break above it will suggest that the downtrend could be ending. The pair could then rise to $1,800 and thereafter to $2,030.

On the contrary, if the price turns down from the current level or the overhead resistance, the bears will try to pull the pair to the channel’s support line.

MATIC/USDT

Several major cryptocurrencies are trading or have been threatening to break below their June low, but Polygon (MATIC) has been an outperformer as it is trying to form a base well above its yearly low.

The MATIC/USDT pair nudged above the 50-week SMA ($1.05) a few weeks ago, but the bulls could not sustain the breakout. This suggests that bears are active at higher levels. An encouraging sign is that the bulls did not allow the price to break below the crucial support at $0.69.

The 20-week EMA ($0.88) has flattened out and the RSI is near the center, indicating a balance between supply and demand. The first sign of strength will be a break above $1.05. That could increase the likelihood of a retest of $1.30. This is an important level for the bears to defend because a break above it could signal the start of a new uptrend.

The pair could rally to $1.75, where the bears may pose a strong challenge again. If this resistance is crossed, the pair could pick up momentum and soar to $2.92. The bears will gain the upper hand if they sink the price below $0.69. That could clear the path for a drop to $0.31.

The pair has been stuck between $1.05 and $0.69 for several days. The breakout above $1.05 on Nov. 4 proved to be a trap as the bears pulled the price back below $1.05 on Nov. 8. Since then, the pair has continued its range-bound action.

The longer the price stays stuck inside the range, the stronger its breakout. The next break above $1.05 could enhance the prospects of a rally above $1.30. If that happens, the bullish momentum could pick up and the pair may climb to the psychological level of $2.

Alternatively, a break below $0.69 could tilt the advantage in favor of the bears. The pair could first drop to $0.40 and then retest the vital support of $0.31.

TON/USDT

Toncoin (TON) has been gradually pulling higher since the June low of $0.74. Traders put in a higher low at $1.18 in October, which is a sign of strength.

The up-move in the TON/USDT pair has reached the overhead resistance zone between $2.15 and $2.50. The bears will strive to stop the march by the bulls in this zone. If they do that, the pair could drop to the 20-week EMA ($1.61) and then to $1.18. If this support gives way, the pair could retest its June low of $0.74.

If bulls want to maintain their advantage, they will have to bulldoze their way through the overhead zone. The pair could attract huge buying if it sustains above $2.50 as it has no major overhead resistance above this level. The next stop on the upside could be $4.26.

The bulls tried to push the price above $2.15 on Dec. 11 but the bears held their ground as seen from the long wick on the day’s candlestick. However, the bulls did not give up ground and are again trying to break above the overhead resistance on Dec. 12.

The upsloping moving averages and the RSI in the overbought zone indicate that the path of least resistance is to the upside. Above $2.15, the pair could rally to $2.50.

This level may act as resistance on the way down. But if bulls flip the $2.15 level into support, it will increase the chances of a break above $2.50.

The bears will have to pull and sustain the price below the moving averages to weaken the short-term strength. The pair could then drop to $1.50 and later to $1.20.

QNT/USDT

Quant (QNT) soared from $40 in June to $228 in October. This sharp rally in the midst of the bear phase indicates strong demand from traders. Although the price has given back a large part of its gains, buyers are trying to form a higher low near $87.

After the volatile moves of the past few weeks, the QNT/USDT pair is likely to enter a consolidation phase where the bulls and the bears battle it out for supremacy. The boundaries for the wide range may be $87 on the downside and $228 on the upside.

A well-defined range offers an opportunity for traders to buy near the support and book profits close to the resistance.

If bulls kick the price above $228, the pair could speed up and soar to $325. This level could act as a roadblock, but if cleared, the pair could retest the high at $430.

If the price turns down and breaks below $87, it will suggest that bears are in command. The pair could then plummet to $50.

*QNT/USDT daily chart. Source: TradingView*

After the sharp fall from $228 to $94, the pair may spend some time in a range. The important level to watch on the upside is $137, and $94 on the downside.

If bulls push the price above $137, the pair could rally to the 61.8% Fibonacci retracement level at $176. The bears are expected to aggressively defend this level because a break above it could complete a 100% retracement, resulting in a rally to $228.

However, if the price breaks and sustains below $94 in the near term, it could indicate a resumption of the downtrend.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin’s boring price action allows XMR, TON, TWT and AXS to gather strength

BTC’s price range is tightening in preparation for a potential range expansion. Meanwhile, XMR, TON, TWT and AXS are maintaining their bullish momentum.

The relief rally in the United States equities markets took a breather this week as all major averages closed in the red. Traders seem to have booked profits before the busy economic calendar next week.

The S&P 500 index dropped 3.37%, but a minor positive for the cryptocurrency markets is that Bitcoin (BTC) has not followed the equities markets lower. This suggests that crypto traders are not panicking and dumping their positions with every downtick in equities.

The range-bound action in Bitcoin suggests that traders are avoiding large bets before the Federal Reserve’s rate hike decision on Dec. 14. However, that has not stopped the action in select altcoins, which are showing promise in the near term.

Let’s look at the charts of Bitcoin and select altcoins and spot the critical levels to watch out for in the short term.

BTC/USDT

Bitcoin has been hovering around its 20-day exponential moving average (EMA) of $17,031 for the past few days. The flat 20-day EMA and the relative strength index (RSI) near 50 do not give a clear advantage either to the bulls or the bears.

The critical level to watch on the upside is $17,622. If buyers kick the price above this level, the BTC/USDT pair could start a stronger recovery that could carry it to the downtrend line. The bears are expected to defend this level aggressively.

If the price reverses direction from the downtrend line but does not fall below $17,622, it will suggest that the bulls are attempting to flip the level into support. That could enhance the prospects of a break above the downtrend line. The pair could then rally to $21,500.

On the downside, the bears may gain strength if the price breaks below $16,678. The pair could then drop to $15,995.

*BTC/USDT four-hour chart. Source: TradingView*

The pair has been trading inside an ascending channel on the four-hour chart. The bears have kept the price in the lower half of the channel, indicating selling on rallies. A break below the moving averages could pull the price to the support line of the channel. If this level fails to hold, the pair could start a down move to $16,678 in the near term.

If the price turns up from the current level or the support line of the channel, it will indicate that bulls continue to buy on dips. The pair could then attempt a rally to the overhead resistance at $17,622. If this level gets taken out, the pair could climb to the resistance line of the channel.

XMR/USDT

Monero (XMR) has been trading inside a falling wedge pattern for the past several days. The upsloping 20-day EMA ($143) and the RSI in the positive zone indicate that bulls have an edge.

The XMR/USDT pair could rise to the resistance line of the wedge, where the bulls are likely to encounter strong selling by the bears. If the price turns down from the resistance line and breaks below the moving averages, it will suggest that the pair may extend its stay inside the wedge.

Instead, if bulls drive the price above the resistance line, it will suggest a change in the short-term trend. The pair could then attempt a rally to $174 which could act as a roadblock. A break above this level could signal that the downtrend could be over.

*XMR/USDT four-hour chart. Source: TradingView*

The pair has been rising inside an ascending channel pattern on the four-hour chart. This shows that the short-term sentiment remains positive and traders are buying the dips. The pair could continue its up-move and reach the resistance line near $156. If this level is scaled, the rally may touch $162.

The first sign of weakness will be a break and close below the moving averages. The pair could then decline to the support line of the channel. A break below the channel could start a downward move to $133.

TON/USDT

The bulls pushed Toncoin (TON) above the resistance of the symmetrical triangle on Dec. 11, indicating that the uncertainty has resolved in favor of the buyers. The symmetrical triangle usually acts as a continuation pattern, which increases the likelihood of the resumption of the uptrend.

If buyers sustain the price above the triangle, the TON/USDT pair could attempt a break above the overhead resistance zone between $2 and $2.15. If they manage to do that, the pair could pick up momentum and soar to the pattern target of $2.87.

Contrarily, if the price fails to sustain above the triangle, it will suggest that bears continue to sell on rallies. A break below the 50-day simple moving average (SMA) of $1.70 could trap the aggressive bulls, pulling the pair to the support line of the triangle.

*TON/USDT four-hour chart. Source: TradingView*

The moving averages on the four-hour chart are sloping up and the RSI is in the overbought zone, indicating that bulls are in command. The up-move may face hindrance near $2 but if bulls sustain the price above this level, the rally could pick up speed.

If the price turns down from the current level and breaks below the 50-SMA, the selling could accelerate and the pair may slump to $1.70. This is an important level to keep an eye on because a break below it could signal that bears are back in charge.

TWT/USDT

Trust Wallet Token (TWT) has continued its northward march, suggesting that traders are buying at higher levels and not booking profits in a hurry. That increases the possibility of the extension of the uptrend.

The bulls will attempt to drive the price above the overhead resistance at $2.73. If they succeed, the TWT/USDT pair could rally to the psychological level of $3 where the bears may try to stall the up-move.

If buyers bulldoze their way through this obstacle, the uptrend could reach the pattern target of $3.51.

The bears are likely to have other plans as they will try to defend overhead resistance at $2.73. They will have to pull the price below the 20-day EMA ($2.30) to gain the upper hand.

*TWT/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that bulls have been buying the dips to the moving averages. Although the moving averages are sloping up, the RSI is showing a negative divergence, indicating that the bullish momentum may be weakening. This may change if bulls thrust the price above $2.73 as that could attract further buying.

The moving averages are the critical support to watch on the downside. If the 50-SMA support collapses, several short-term traders may book profits and that could pull the pair down to $2.25 and thereafter to $2.

AXS/USDT

Axie Infinity (AXS) has been in a strong downtrend but it is showing the first signs of a potential trend change. Buyers pushed the price above the downtrend line on Dec. 5 but could not sustain the higher levels, as seen from the long wick on the day’s candlestick.

A minor positive is that the bulls have not allowed the price to break below the moving averages. This shows that buyers are trying to flip the moving averages into support.

The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, indicating that the momentum may be shifting in favor of the bulls. If the price breaks and sustains above the downtrend line, a rally to $11.85 is likely. This level is expected to act as a major hurdle on the upside.

The bullish view could invalidate in the near term if the price turns down and breaks below the moving averages. The AXS/USDT pair could then slide to $6.57.

*AXS/USDT four-hour chart. Source: TradingView*

The four-hour chart shows that bears are vigorously defending the downtrend line and the bulls are buying the dips to the 50-SMA. The 20-EMA has flattened out and the RSI is near 47, indicating a balance between supply and demand.

A break and close above $8.70 could shift the advantage in favor of the bulls. The pair could then rally to $9.28 and later to $10. Alternatively, a break below $7.86 could suggest that bears are back in the driver’s seat. The pair could then slide to $6.87.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price consolidation could give way to gains in TON, APE, TWT and AAVE

If Bitcoin rises through resistance at $17,622, TON, APE, TWT and AAVE could begin to tack on outsized gains.

The United States equities markets shrugged off the hotter-than-expected labor data on Dec. 2 and recovered sharply from their intraday low. This suggests that market observers believe the Federal Reserve may not change its stance of slowing the pace of rate hikes because of the latest jobs data.

Although the FTX crisis broke the positive correlation between the U.S. equities markets and Bitcoin (BTC), the recent strength in equities shows a risk-on sentiment. This could be favorable for the cryptocurrency space and may attract dip buyers.

The broader crypto recovery may pick up steam after more clarity emerges on the extent of damage caused by FTX’s collapse. Until then, bullish price action may be limited to select cryptocurrencies.

Let’s look at the charts of Bitcoin and select altcoins that may be getting ready to start an up-move in the near term.

BTC/USDT

Bitcoin has been trading near its 20-day exponential moving average, or EMA, of $16,963 for the past three days. This suggests a tough battle between the bulls and the bears to gain supremacy.

The major roadblock for the buyers on the upside is $17,622. If bulls catapult the price above this level, it will suggest that the downtrend could be over. The BTC/USDT pair could then race to the psychological level of $20,000. This level may again act as a resistance, but if crossed, the pair could rally to $21,500.

Conversely, if the price turns down from $17,622 and breaks below the 20-day EMA, it will suggest that the bears have not yet given up. The pair could thereafter consolidate in a large range between $15,476 and $17,622.

Buyers are defending the 20-day EMA on the four-hour chart, but the failure to achieve a strong bounce indicates that demand dries up at higher levels. The bears may try to make the most of this opportunity and pull the price below the moving averages. If they manage to do that, the pair could drop to $16,000 and then to $15,476.

On the other hand, if the price turns up and breaks above $17,250, the likelihood of a rally to $17,622 increases. This level may again act as a significant resistance, but if bulls drive the price above it, the pair could rally to $18,200.

TON/USDT

Toncoin (TON) nudged above the symmetrical triangle pattern on Nov. 30, but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. However, the bulls defended the 20-day EMA ($1.73) on the downside, indicating buying on dips.

The upsloping moving averages and the relative strength index (RSI) in the positive zone indicate advantage to buyers. This improves the prospects of a break above the resistance line of the triangle. If that happens, buying could accelerate and the TON/USDT pair could soar to $2.15 and then march toward the pattern target of $2.87.

This positive view could negate in the near term if the price once again turns down from the resistance line and plummets below the 20-day EMA. That could increase the selling pressure and pull the pair to the 50-day simple moving average ($1.62) and later to the support line.

The bears are trying to defend the overhead resistance at $1.84 while the bulls are buying the dips to the 20-day EMA. The price is getting squeezed between the two levels and may be ripe for a range breakout.

If the price rises above the overhead zone between $1.84 and the downtrend line, it may attract further buying by the bulls. That could start a new up-move to $2. The important level to watch on the downside is $1.68 because a break below it could expedite the drop to the support line.

APE/USDT

ApeCoin (APE) turned down from the downtrend line on Nov. 30, but the bulls have not allowed the price to break below the 20-day EMA ($3.73). This is a positive sign as it signals demand at lower levels.

The 20-day EMA is gradually turning up and the RSI has jumped into the positive territory, indicating that bulls are attempting a comeback. The APE/USDT pair could pick up momentum on a break above the downtrend line. This could open the doors for a possible rally to $5 and thereafter to $6.

Instead, if the price turns down and breaks below the 20-day EMA, it will suggest that bears are active at higher levels. The pair could then drop to $3, which is likely to act as a strong support.

*APE/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the four-hour chart has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. This uncertainty could shift in favor of the bulls if they push the price above $4.05. The pair could then rally to the downtrend line.

If bears want to gain the upper hand, they will have to sink the pair below $3.77. If they manage to do that, the decline could extend to $3.50.

TWT/USDT

Trust Wallet Token (TWT) rebounded sharply off the 20-day EMA ($2.07) on Nov. 27 and broke above the resistance at $2.45 on Dec. 2. This suggests that the trend remains bullish and traders are viewing the dips as a buying opportunity.

The bears may again pose a strong challenge at $2.73 but if bulls overcome this barrier, the TWT/USDT pair could resume the uptrend. The next stop on the upside could be $3, and if this level is also taken out, the pair could soar to the pattern target of $3.51.

Contrarily, if the price turns down and breaks below $2.25, the pair could drop to the 20-day EMA. This remains the key level to watch on the downside because a break below it could pull the pair toward $1.81. A bounce off this level could suggest that the pair may consolidate between $1.81 and $2.54 for a few days.

The 20-EMA on the four-hour chart has turned up and the RSI is in the positive zone, indicating that buyers have an edge. The bulls will attempt to drive the price above the overhead resistance zone between $2.54 and $2.73. If they succeed, the pair could start the next leg of the uptrend.

Contrary to this assumption, if the price turns down and breaks below the 20-EMA, the bullish momentum may weaken and the pair could slide to the 50-day simple moving average (SMA). The pair could then remain range-bound for some time before starting the next trending move.

AAVE/USDT

Aave (AAVE) recovered sharply from the psychological support at $50 and broke above the 20-day EMA ($63). Buyers are currently striving to strengthen their position by flipping the 20-day EMA into support.

The bears are trying to defend the 32.8% Fibonacci retracement level of $68, but a minor positive is that the bulls have not given up much ground. This indicates that buyers anticipate a move higher.

The 20-day EMA has flattened out and the RSI is near the midpoint, indicating that the bears may be losing their grip. If buyers thrust the price above $68, the AAVE/USDT pair could rally to the 50-day SMA ($71) and thereafter to the 61.8% retracement level at $80.

On the contrary, if the price turns down and breaks below the 20-day EMA, the pair could drop to the support line of the channel.

*AAVE/USDT 4-hour chart. Source: TradingView*

The pair is facing resistance near $66 and the RSI has formed a negative divergence on the four-hour chart, suggesting that the bullish momentum could be weakening in the near term. A break below the 50-SMA could pull the price to the $56 to $58 support zone.

Alternatively, if the price turns up from the current level and breaks above $66, the pair could rally to $71. This level may again act as a resistance, but if bulls push the price above it, the rally could extend to $80.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

TON, TWT, CHZ and QNT breakout amid traders’ crypto contagion fears

Bitcoin price is stuck in a tight range, but TON, CHZ, QNT and TWT caught a bid in the past week.

The FTX collapse continues to stoke fears of a contagion in the cryptocurrency space as investors wait to hear about businesses that may face the heat. One of the marquee names to come under the circle of suspicion is the Grayscale Bitcoin Trust (GBTC), which has seen its discount to Bitcoin’s (BTC) price reach record levels of about 50%.

Traders hate uncertainty and shy away from investing during these periods. That could be one of the reasons for the lack of buying interest in Bitcoin even after the sharp fall in its price. The Stock-to-Flow (S2F) model, which had seen its popularity soar during the bull phase, is coming under increasing criticism after the deviation between Bitcoin’s price and its projected price hit levels never seen before.

Does this suggest that the pessimism has reached an extreme or is it just that the S2F model is flawed?

During a bear market phase, the general trend is down, but there are always pockets of strength that may offer trading opportunities to long-only investors. However, rallies during bear markets are short-lived, hence traders may consider booking profits near strong resistance levels.

Let’s look at the charts of five cryptocurrencies that may attempt a rally in the near term.

BTC/USDT

Bitcoin continues to trade inside the tight range between $16,229 and $17,190. Generally, periods of tight consolidation are followed by an increase in volatility.

The downsloping moving averages and the relative strength index (RSI) in the negative zone indicate that the path of least resistance is to the downside. If the price breaks below $16,229, the Nov. 9 intraday low of $15,588 may be threatened. A break and close below this support could signal the resumption of the downtrend. The next support on the downside is $12,200.

If bulls want to avoid a further decline, they will have to push and sustain the price above the breakdown level of $17,622. Such a move will suggest strong demand at lower levels. The pair could then climb to the psychological level of $20,000.

The BTC/Tether (USDT) pair has been trading near the moving averages, which have flattened out. This suggests that the pair has entered a state of equilibrium as both the buyers and sellers are undecided about the next directional move.

However, this uncertainty is unlikely to continue for long. If the price plummets below $16,229, the selling pressure could pick up momentum and the pair may drop to $15,588. If this support gives way, the pair may start the next leg of the downtrend.

On the contrary, if the price rises and breaks above $17,190, it will suggest that the current tight range was used by the bulls to accumulate. The pair could then rally to $18,200 and later to $18,730.

TON/USDT

Toncoin (TON) has recovered sharply from its June low and managed to hold on to a large part of the gains. This suggests that traders are in no hurry to dump their positions at higher levels.

The TON/USDT pair has formed a symmetrical triangle, which usually acts as a continuation pattern. Both moving averages are gradually sloping up and the RSI is in the positive territory, indicating a slight advantage to the bulls.

If the price rebounds off the 20-day exponential moving average (EMA) of $1.65, the bulls will try to drive the price above the triangle. If they can pull it off, the pair could rally to $2.15 and thereafter climb toward the target objective of $2.87.

Alternatively, if the price slips below the 20-day EMA, the pair could drop to the 50-day simple moving average (SMA) of $1.50 and then to the support line.

The pair is facing stiff resistance at $1.80. Repeated failure to sustain the price above this level may have tempted short-term traders to book profits. The bears are trying to capitalize on this situation and sink the price below the 50-SMA. If this support cracks, the pair could dive to $1.55.

Conversely, if the price rebounds off the current level, the bulls will again try to scale the wall at $1.80. The repeated retest of a resistance level tends to weaken it. A close above this resistance could open the doors for a possible rally to $2.

CHZ/USDT

Chiliz (CHZ) is attempting to form an inverse head and shoulders pattern, which will complete on a break and close above the neckline. If that happens, it may signal the start of a new uptrend.

The pattern target of the reversal formation is $0.54 but the bears are unlikely to give up easily. They are aggressively defending the neckline. If the price breaks below the 50-day SMA of $0.21, the CHZ/USDT pair could decline to $0.18 and subsequently to $0.14.

Alternatively, if the price bounces off the current level, buyers will again attempt to propel the pair above the neckline and gain control.

The flattening moving averages and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. Hence, it is better to wait for the price to breakout before establishing fresh positions.

*CHZ/USDT 4-hour chart. Source: TradingView*

The pair turned down sharply from $0.27 and the bears have pulled the price below the moving averages. If the price sustains below the 50-SMA, the pair could drop to $0.20. That could put the bears in the driver’s seat.

On the other hand, if the price turns up from the current level and rises above the 20-EMA, it will suggest that traders are viewing the dips as a buying opportunity. The pair could then rise to $0.26 and later to $0.28. Buyers will have to drive the price above this level to challenge the resistance at $0.30.

QNT/USDT

Although Quant (QNT) has corrected sharply in the past few days, it is attempting to take support and bounce off the support line. This indicates demand at lower levels.

The downsloping 20-day EMA of $128 indicates an advantage to the bears but the RSI is trying to form a positive divergence. This suggests that the selling pressure could be easing.

Buyers will have to propel and sustain the price above the 20-day EMA to indicate that the corrective phase may be over. The QNT/USDT pair could then rise to the 50-day SMA of $151 and thereafter to $180.

This positive view could invalidate in the near term if the price continues lower and breaks below the uptrend line. The pair could then drop to $87 and later to $79.

*QNT/USDT 4-hour chart. Source: TradingView*

The recovery in the pair is facing selling near the downtrend line. This suggests that the bears are active at higher levels. The bears have pulled the price below the moving averages and will try to extend the decline to $105 and then to $94.

To invalidate this negative view, the bulls will have to kick and sustain the price above the downtrend line. The pair could then rise to $125 where the bears may mount a strong defense. If buyers overcome this barrier, the up-move may reach $136.

TWT/USDT

While most major cryptocurrencies extended their downtrend in the past few days, Trust Wallet Token (TWT) has moved in the opposite direction and risen sharply. This indicates outperformance in the near term.

The TWT/USDT pair soared from $1.03 on Nov. 10 to $2.73 on Nov. 14, a 165% rally within a short time. That pushed the RSI deep into the overbought territory, suggesting a minor correction or consolidation in the near term and that is what happened.

The pair is finding support near the 50% Fibonacci retracement level of $1.88 but the bulls are struggling to push the price above $2.45. This suggests the pair may consolidate between $1.81 and $2.45 for a few days.

Both moving averages are sloping up and the RSI remains in the positive territory, indicating that bulls have the advantage. If buyers drive the price above the $2.45 to $2.73 resistance zone, the pair could resume its uptrend. This positive view could invalidate on a break and close below the 20-day EMA of $1.70.

The bears pulled the price below the 50-SMA, but they are struggling to keep the pair down. This suggests strong buying at lower levels. If buyers push the price above the 20-EMA, the pair could rise to the downtrend line.

A break above this level could clear the path for a possible rally to $2.45. This remains the key hurdle for the bulls to overcome. If they succeed in breaking it, the pair may retest $2.73.

On the downside, a slide below $1.92 could result in a decline to $1.81. This is an important level to keep an eye on because a break below it could tilt the advantage in favor of the bears.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.