Top 5 cryptocurrencies to watch this week: BTC, ADA, AXS, LINK, FTT

Bitcoin (BTC), which is trying to make its second consecutive weekly gain, will close at the highest weekly closing prices year-to date. Glassnode’s on-chain data shows that the price rise in Bitcoin was due to demand from the spot markets. This will be a good sign for bulls, as history shows that spot market demand can lead to sustained upside.

Another positive indicator is the high demand for ProShares Bitcoin Strategy exchange traded fund (BITO), which has pushed its exposure up to a record-high. Arcane Research stated that the strong inflows “suggest that Bitcoin consumption through traditional investment vehicles has increased.”

Daily view of crypto market data. Source:Coin360

Investors are also attracted to the wider crypto space, which is in addition to Bitcoin. Fundstrat research found that venture capital investors invested $4 billion in crypto over the past three weeks.

Can buyers maintain the momentum and prolong the relief rally in Bitcoins and altcoins. Let’s look at the charts of top five cryptocurrencies that could outperform in the near term.

BTC/USDT

The March 25th candlestick for Bitcoin shows that the bears are fighting the $45,400 overhead resistance. The bulls have not lost much ground suggesting that traders aren’t closing their positions quickly.

Daily chart of BTC/USDT Source: TradingView

The relative strength index (RSI), which is located in the positive territory, has moved up in the 20-day exponential moving Average ($42,025). This indicates that bulls are in control. The resistance line in the ascending channel could be reached if buyers push the price higher than $45,400.

Although this level could be a problem again, bulls can overcome it and the pair could rally to psychological level of $50,000.

Contrary to what you might think, bears will attempt to pull the pair back to $42,594. This level is important to monitor because bulls can flip it to support and the chance of a break above $45,400 rises.

To signal that bulls are on the backfoot, the bears will need to pull the price lower than the moving averages.

BTC/USDT 4-hour chart. TradingView

The 4-hour chart shows that although the overhead resistance was lowered, the bulls prevented the pair from breaking below the 20-EMA. This indicates that traders buy on any minor dip.

Rising moving averages and a RSI close to the overbought area suggest that the path to the upside is the one of least resistance. If the price falls below the 20EMA, this positive outlook will be invalidated in the short-term. The pair could fall to $42,594.

DA/USDT

Cardano (ADA), has been sustaining above $1 for the last few days. This suggests that bulls who might have bought at lower levels aren’t booking aggressively for profits as they expect the recovery will continue.

Daily chart ADA/USDT Source: TradingView

Bulls are in control. The moving averages completed a bullish crossover, and the RSI was in the positive zone. The bullish momentum could pick up if buyers push the price higher than $1.26. This would allow the ADA/USDT pairs to rally to $1.60.

If the price falls from $1.26, but then rebounds to $1, it could indicate that the pair will remain range bound between these levels for a few days more. To invalidate the bullish view, the bears must sink below the moving averages and maintain it there.

ADA/USDT 4-hour chart. Source: TradingView

The 4-hour chart clearly shows that the bears are aggressively defending $1.20 overhead resistance. However, a minor plus is that the bulls have not allowed price to fall below the 20-EMA. The bulls will attempt to break the $1.20 hurdle and push the pair towards $1.26 if the price rises above the current level.

Alternatively, a price drop below the 20-EMA could indicate that bullish momentum is weakening. The price could then slowly decline towards the $1 support.

XS/USDT

Axie Infinity has traded between $72 to $44 over the past few trading days. Although the buyers managed to push the price higher than the overhead resistance of March 25, they were unable to sustain it. This shows that the bears are vigorously defending the level.

Daily chart of AXS/USDT Source: TradingView

The bullish crossover of the moving averages and the RSI has moved into the positive territory suggests buyers have an advantage.

The bulls will attempt to push the AXS/USDT price above $72 if the price rises from its current level or bounces off the 20-day EMA (56). If they succeed, the bulls will attempt to push the AXS/USDT pair above $72. The up-move could pick up momentum and the pair might rally to $100.

If the price falls below the 20-day EMA, this positive outlook will be invalidated. This could mean that the pair remains range bound for a few days more.

AXS/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls pushing the price higher than the overhead resistance of $72, but not able to sustain it at higher levels. The short-term traders may have profited from this and pulled the price below 20-EMA.

It will be a sign of accumulation on dips if the price rises from its current level. The buyers will attempt to overcome the $72 obstacle and begin a new up-move.

Contrary to this assumption the correction could be extended to the 50-simplemoving average if the price remains below the 20-EMA.

Related: Dogecoin signal bottoming as DOGE recovers 30% in 2 weeks — What’s next

LINK/USDT

Chainlink (LINK), has traded within a huge range between $13 to $36 over the past few months. Although bears managed to pull the price below its support, the market could not sustain it. This indicates that markets rejected lower levels.

Daily chart for USDT LINK. Source: TradingView

The bullish crossover of the moving averages and the RSI has reached the positive territory suggests that buyers are in control. Although resistance may be encountered at the downtrend line, the rally could still reach $20 if it is overcome.

The moving averages could also be supportive if the price falls below the current level. The possibility of breaking above the downtrend line may increase if the price bounces off it. If the bears push the price below the moving ranges, this positive view will be invalidated. This could lead to a drop of up to $13.

LINK/USDT 4-hour chart. Source: TradingView

Although the bears have a strong defense at $16.50, a minor plus is that buyers have not allowed price to drop below the 50 SMA. The bulls will attempt to push the pair higher than $16.50 if the price rises above the current level, or reboundes off the moving averages. The pair could rally to $17.50 if they succeed.

Contrary to popular belief, if the price falls below the 50-SMA it will indicate that short-term bulls are closing their positions. The pair may slide to $14 if it breaks below $15.

FTT/USDT

FTX Token, (FTT), broke and closed above $49. on March 24, completing an ascending triangular pattern. Although buyers drove the price higher than the psychological resistance of $50 on March 25, it was not able to sustain this level.

Daily chart of FTT/USDT Source: TradingView

This indicates that the bears are not giving up yet and continue to sell at higher prices. Now, the bears will try to pull the price below $49. The bulls who bought the breakout from the triangle could be trapped if they succeed in pulling the price down below $49. This could lead to the FTT/USDT pairing falling to the $20 EMA ($45).

If the price rebounded from this level, buyers will attempt to clear the overhead resistance zone of $49-$52 and resume the upward movement.

If the price falls below the moving averages it will indicate that the bears are trying to make a comeback. The bullish pattern will be invalidated if the price breaks below the uptrend line in the triangle. The pair could then fall to $39.

FTT/USDT 4-hour chart. Source: TradingView

The rally to $51 pushed RSI into overbought territory. These moves usually are followed by sharp corrections or consolidation. The pair could fall further to the 50 SMA if bears push the price below $49

If the price recovers from this level, buyers will attempt to push the pair higher than $52 and resume their up-move. If bears push the price below 50-SMA, selling could increase and the pair could drop to $45.

You should research all aspects of trading and investment before making any decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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