Top 5 cryptocurrencies to watch this week: BTC, AVAX, MATIC, EGLD, MANA

Bitcoin (BTC), despite a difficult tussle at the $58,000 mark, has not stopped some altcoins reaching new all-time highs. This is a sign that traders are closely monitoring the fundamental developments of individual coins.

Avalanche (AVAX) has been one of the most popular altcoins in recent months. It has seen a more than 120% increase in November. The announcement by Deloitte, an accounting firm, that it will build its disaster relief platforms using the Avalanche Blockchain caught the attention of traders.

Daily view of crypto market data. Source:Coin360

El Salvador’s President Nayib Bukele announced that Bitcoin City will be launched. This is another sign of growing crypto adoption. It will be powered with geothermal energy, and funded initially by $1 billion in Bitcoin bonds.

Are altcoins able to participate in the recovery and could strong buying at lower levels increase Bitcoin’s value above $60,000? Let’s look at the charts of five top cryptocurrencies that may be attractive to traders in the near term.

BTC/USDT

Bitcoin reversed its direction on Nov. 19, from $55,600 to $55,600, but there is resistance at the 50 day simple moving average ($60.187). The relative strength index (RSI), which is located in the negative zone, and the moving averages are at the edge of a bearish crossover, indicate that bears have made a strong comeback.

Daily chart of BTC/USDT Source: TradingView

The bears will try to prolong the correction by lowering the BTC/USDT exchange rate below $55,600 if the price falls from its current level. The next stop for bears could be the $52,500-to $50,000 strong support zone.

The bulls will push the pair higher than the moving averages or the downtrend line if the price bounces off of this zone. This will signal that the correction phase is over. The bulls will attempt to push the price higher than the $69,000 record.

A break below $50,000 psychological support could lead to increased selling by traders who rush to the exit. This could lead to a drop in the pair to $45,000, and then to $40,000.

BTC/USDT 4-hour chart. TradingView

The 4-hour chart shows that the bears drove the price below $58,000, but could not capitalize on this advantage. Bulls purchased the dip and have lifted the price above the 20-exponential moving mean.

The pair could rally to the downtrend if the price holds above $58,000. If the price breaks and closes above this resistance, it could signal that bulls are in control. The pair could rally to $62,000, and then to $67,000.

However, if the price falls below $55,600 and the current level, it could signal a deeper correction.

VAX/USDT

Avalanche is currently in an uptrend and has been consistently making new highs over the past few days. Although the bulls drove the price higher than the 200% Fibonacci extension at $146.18 today, the candlestick’s long wick shows profit-booking at higher levels.

Daily chart of AVAX/USDT Source: TradingView

While the rising 20-day EMA (96), suggests bulls are in control, the RSI close to 80 suggests that the rally could be overheated in near term. This could lead to a slight correction or consolidation over the next few days.

$110, then the 20-day EMA, may be a strong support if the price falls below the current level. If the price bounces off any level, it will indicate that bulls see dips as buying opportunities. The pair could then move towards the 261.8% Fibonacci extension at $175.58.

Contrary to popular belief, if the price falls below the 20-day EMA it will indicate that traders are rushing for the exit. This could push the AVAX/USDT exchange to $81.

AVAX/USDT 4-hour chart. Source: TradingView

The pair has declined from $147. This indicates aggressive profit-booking at higher prices. The bears are now trying to pull the price below the 20-EMA. This support is likely to be strong.

The price rebounding above the 20-EMA will signal strong buying at dips. The bulls will attempt to reestablish the uptrend by pushing it above $147.

Contrary to the assumption, if the price falls below the 20-EMA, selling could accelerate, and the pair could drop to $110. This could indicate that bulls are losing their grip. The pair could then drop to the 50 SMA.

MATIC/USDT

Polygon (MATIC), has been trading in an ascending channel pattern over the past few days. On Oct. 28 and 29, the bulls drove the price higher than the resistance line, but the breakout failed to take place. This could have led to short-term traders selling.

Daily chart MATIC/USDT Source: TradingView

On Nov. 3, the bears successfully defended their resistance line. This began the channel’s downward trajectory towards the trendline. A minor advantage for sellers is the downsloping 20 day EMA ($1.69) as well as the RSI just below its midpoint.

The MATIC/USDT currency pair could fall to the trendline if the price falls from its current level. This level is expected to be defended aggressively by the bulls. The price will rise above the 20-day EMA if it rebounds from the trendline. This could indicate that selling pressure is decreasing. This could signal the beginning of the northward march towards the resistance line.

Contrary to popular belief, bears could sink the price below the trendline and cause a decrease in the psychological support at $1.

MATIC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows bulls trying to rally from the $1.50-$1.40 support zone. The 20-EMA has begun to rise and the RSI is close to the center, indicating that selling pressure may be decreasing.

The pair could reach $1.80 if bulls push the price higher than $1.70. If the price breaks and closes above this level, it will be a sign of strength. The pair could then begin its upward move towards $2.15. The downside is that selling could accelerate if the bears lower the price to $1.40.

Similar: What is the difference between seeing red and seeing blue? FUD this! FUD this!

EGLD/USDT

Elrond (EGLD), which was trading at $303.03 on Nov. 16-18, tried to push it below that level but the bulls purchased the dips. The long tails on candlesticks show that the bulls bought them. On Nov. 19, strong buying drove the price to $338.70 overhead resistance.

Daily chart of EGLD/USDT TradingView

The uptrend was resumed and the EGLD/USDT pairing has neared its target of $427. This sharp rally has pushed RSI into the overbought area, suggesting that a correction or consolidation could be in the future.

The breakout level at $338.70 is the first support. Next, the 20-day EMA ($325) will be the second. It will indicate that traders continue to buy dips if the price bounces off either of these levels. The bulls will attempt to regain the uptrend, with the next objective at $500.

If the price falls below $303, this positive outlook will be invalidated.

EGLDT/USDT 4-hour chart. Source: TradingView

The 4-hour chart clearly shows that the bears attempted to stop the upward movement at $400, but the bulls refused to give up. The psychological barrier was broken by the continued buying at higher levels. Bulls are clearly in control of the market thanks to the rising 20-EMA and the RSI within the overbought area.

The $380 level is the first to be watched for any downside. The 20-EMA support may be breached if bears pull the price lower than this support. If the price holds strong, the support will keep the trend intact. However, a break below this support may indicate that bullish momentum is weakening.

MANA/USDT

Decentraland (MANA), which was at $4.35 on November 20, had declined from the 78.6% Fibonacci level. This suggests that traders could be selling rallies.

Daily chart MANA/USDT Source: TradingView

MANA/USDT could drop to $3.50 as immediate support. If this level is broken, the correction could reach the 20-day EMA ($3.11). It will indicate that traders are buying dips and sentiment is still positive if the price bounces off any support.

The bulls will attempt to push the price up to $4.36. If the price breaks and closes above this resistance, it could open the door to a rally up to $4.94. If the price falls further and breaks below 20-day EMA, this positive outlook will be invalidated.

MANA/USDT 4-hour chart. Source: TradingView

The pair has been rising within an ascending channel pattern. The failure by the bulls to push it above the resistance line could have prompted traders to sell, bringing the price below 20-EMA.

Both moving averages are flattened and the RSI is near the midpoint. This suggests that bullish momentum might be weakening. The trendline of the channel could see buying opportunities.

The pair could keep its upward-move within the channel if it bounces off the trendline. The buyers will attempt to push the price above the resistance line. A break above the channel could see bullish momentum pick up.

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

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

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.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami