Market leaders Bitcoin and Ethereum are currently trading in a consolidation phase, with the latter managing to reclaim some lost ground. Meanwhile, DOT and DOT were among the few gainers in the top-ten altcoins. Also, the stablecoins USDC, USDT, and BUSD have shown some price appreciation.
The general market sentiments are positive, but a lot of bearish pressure is still looming large. The crypto sell-off seen on the 27th of August saw most of the cryptocurrencies lose a large chunk of their value. However, some coins have been recovering and currently are in a consolidation before the next move. For instance, ADA, DOGE, and Polkadot are a few of the top-ten crypto assets that have posted gains in the last 24 hours.
The market has been struggling to gain some traction ever since. However, the recent bullish price action in Bitcoin might just be what the market needs for a relief rally.
The best crypto performers of the week are Filecoin which has gained 12.25 percent followed by Axie Infinity which has gained 8.96 percent. The losers of the week are 1inch Network and Lido DAO which have declined by 5.81 and 5.31 percent respectively.
Weekly Crypto Price Analysis: A break out in sight?
Bitcoin, the world’s largest cryptocurrency by market capitalization, is currently trading hands at $19,805.02. The king coin has been consolidating in a falling wedge pattern for quite some time now and looks poised for a breakout. However, the question still remains as to which direction the breakout will occur. The short-term momentum of the currency is strongly negative, with RSI below 30.
BTC/USD price chart, Source: TradingView
On the 4-hour chart, we can see that BTC has formed a descending triangle pattern. The pattern is a bearish reversal pattern and is usually seen at the end of an uptrend. The pattern is created when the price action forms a lower high and a series of lower lows. As the name suggests, a breakout from this pattern will occur in the downward direction.
The MACD indicator is currently in the bearish territory and is decreasing. The RSI indicator, on the other hand, is close to the oversold levels and might see a reversal soon.
If the price breaks out of the descending triangle pattern to the downside, the next level of support will be found at $18,600. The breakout to the upside, on the other hand, biggest crypto might see the price rally towards the $21,000 level.
Ethereum, the second-largest crypto by market capitalization is currently trading hands at $15,548.57, a decline of 2.73 percent in the last 24 hours. The coin has been facing a lot of selling pressure and has even dipped below the $15,000 level. The short-term momentum of the coin is strongly bearish with RSI below 30.
On August 30, Ether fell below $1,500. However, the bulls were quite active in buying at lower levels, which is a positive sign. As of September 3, 2022, the buyers are attempting to restore Ether above the moving averages. Most of the technical indicators are signaling a bearish trend in the near term.
The MACD indicator is currently in the bearish territory and is decreasing. The RSI indicator, on the other hand, is close to the oversold levels and might see a reversal soon. The current resistance and support levels are $1,643.18 and $1,542.30 respectively.
ETH/USD price chart,source:TradingView
Ethereum has started to retrace again as it retests the previous swing high resistance as support. If this level holds, we could see a move towards the $1,700 level. On the other hand, a break below $1,500 might see the price decline towards the $1,400 level. We can expect Ethereum to continue its rally early next week and potentially go for a break above the current all-time high at $2,000.
Ripple’s XRP price analysis reveals that Ripple has started to recover in the last few hours as the price reached $0.3293. Some bullish momentum is starting to build up after XRP opened the weekly chart with a huge red candlestick. Besides, the coin is now trading above the 20-day and 50-day SMAs, which is a bullish sign for the crypto.
XRP/USD price chart,source:TradingView
The MACD indicator is currently in the bearish territory but is starting to flatten out. The RSI indicator, on the other hand, is close to the oversold levels and might see a reversal soon. The current resistance and support levels are $0.3360 and $0.3250 respectively.
The DOT/USD pair has been positive in the last 24 hours. In the last week, DOT has been making higher highs and higher lows. The crypto coin is currently trading at $7.24 after opening the trading session at an intraday high of $7.55. DOT witnessed some retracement over the weekend as it dipped below the $6.50 level.
At the moment of writing, Polkadot is trading sideways as it attempts to make a move above the $7.50 level. The technical indicators are signaling a bullish trend in the near term. Meanwhile, the Relative Strength Index indicator is currently flat at 52. The coin might break out in either of the directions depending on the market conditions.
DOT/USD price chart, Source:TradingView
The current resistance and support levels are $7.50 and $7.00 respectively. If the bulls can push the price above the $7.50 level, we could see the crypto move towards the $8.00 level. On the other hand, a break below $7.00 might see DOT decline towards the $6.50 level.
The VET/USD pair has formed a descending triangle pattern as it attempted to make a move above the $0.02487 level. The price has been making lower highs and higher lows in the last few days. Vechain is currently trading at $0.02416, down by 1.13 percent in the last 24 hours.
VET/USD price chart, Source:TradingView
The price is below all the moving averages which is a bearish sign. The MACD indicator is also in the bearish territory and is decreasing. The RSI line is currently close to the oversold levels but is not yet in the oversold territory. The current resistance and support levels are $0.02487 and $0.02334 respectively.
If the bulls can push the price above the $0.02487 level, we could see a move towards the $0.02600 level. On the other hand, a break below $0.02334 might see the price decline towards the $0.02250 level.
In conclusion, the top coins are expected to see some volatile price action in the near term as they attempt to make a move in either direction. The market conditions will dictate the direction of the breakout. The general market might see some consolidation in the next few days as the bulls and the bears battle for control. Nevertheless, we can expect some positive price action early next week as the buyers attempt to push the prices higher.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.