Top 5 cryptocurrencies to watch this week: BTC, LUNA, NEAR, VET, GMT

For cryptocurrency investors and equities, April was a disappointing month. Bitcoin (BTC), which plunged 17% in April, was the worst April performance ever. The Nasdaq Composite fell 13.3% in April, marking its worst monthly performance since Oct 2008.

The good news for crypto investors is that Bitcoin remains above its previous year’s low of $33,000. The S&P 500 is only a few steps away from a new year’s low. However, the Nasdaq 100 hit a new low in 2022. This indicates that Bitcoin has remained stable and is still in demand.

Daily view of crypto market data. Source:Coin360

Ether (ETH), along with Bitcoin, has managed to maintain a high level of trading over its low year-to-date. Jarvis Labs, a cryptocurrency intelligence firm Jarvis Labs claims that both Ether whales as well as retail fish have been accumulating at lower levels.

Could Bitcoin rebound from April’s soaring price and help pull altcoins higher after it has survived the April onslaught? Let’s look at the charts of top five cryptocurrencies that could outperform in near future.

BTC/USDT

Bitcoin fell to the support channel of the ascending channel, but it rebounded today, indicating that bulls are fighting for the level.

Daily chart of BTC/USDT Source: TradingView

The downsloping 20 day exponential moving average (39,956) may suggest a benefit to sellers. However, the positive divergence in the relative strength indicator (RSI), indicates that there is potential for weakening negative momentum.

If the rebound continues, bulls will try to push the price higher than the 20-day EMA. If they succeed, it could signal accumulation close to the support line. The pair could then reach the 50-day simple moving mean ($41,954).

A weak rebound would indicate a lack in aggressive buying close to the support line. The BTC/USDT pair may drop to $34,322 if the price drops below the channel or the 20-day EMA. Later, it could retest the crucial support at $32,917.

BTC/USDT 4-hour chart. TradingView

The 4-hour chart shows that price fell within a falling wedge pattern. The RSI formed a positive divergence which indicates that bearish momentum might be weakening.

The pair could gain momentum if the price breaks through the resistance line. This could lead to a rally to $41,000 The resistance line may be reactivated, but bulls can clear it to move on to $43,000.

If the price falls below the 20-EMA, and the wedge breaks, selling could gain momentum.

LUNA/USDT

Terra’s LUNA token is in an uptrend and has been steadily consolidating for several days. Today’s strong support level of $75 saw the price rebound, suggesting that bulls are aggressively defending this level.

Daily chart of LUNA/USDT Source: TradingView

The LUNA/USDT pairing could attempt a rally to reach the $20-day EMA ($88). This level could be a barrier where bears try to stop the up-move. The chances of a break below $75 support increase if the price drops from the 20-day EMA.

The pair will form a bearish head-and-shoulders pattern if that happens, signaling potential trend changes.

If bulls push the price higher than the 20-day EMA, then the pair could rise again to the psychological resistance of $100. To indicate that the correction is over, buyers will need to overcome this barrier.

LUNA/USDT 4-hour chart. Source: TradingView

The bulls are now trying to push the pair higher than the 20-EMA. It will indicate that selling pressure may be decreasing if they succeed. If the pair breaks the 50-SMA, it could mean that they are likely to remain range bound between $100 and $75 for a while.

Contrary to the assumption, a sharp drop in the price from the current level or 20-EMA will indicate that bears are selling every minor rally. This could lead to a retest at $75 of the strong support.

NEAR/USDT

In the last few days, the price fell sharply due to the failure of bulls to push Near Protocol above $18. Although the price fell to $10 at psychological support on April 30, the strong rebound today suggests that bulls are aggressively buying.

Daily chart NEAR/USDT Source: TradingView

The 200-day SMA ($11.94) will be pushed higher by buyers, which could indicate that the $10 decline may have been a bear trap. The NEAR/USDT currency pair could rise to the 20 day EMA ($13.86), where bears might try to halt the recovery.

To signal the end of the corrective phase, bulls must clear this hurdle. This could trigger a rally towards $18 overhead resistance.

Contrary to the assumption, if the price falls below the 200-day SMA, then the probability of a break below $10 rises. The pair could then extend its correction to $9.30, and then to $8.

NEAR/USDT 4-hour chart. Source: TradingView

The bounce is now above the 20EMA, which is the first sign that the pair is strong. The pair could rally to 50-SMA if buyers can maintain the price above 20-EMA. If the price breaks or closes above this level, it could signal that the downtrend is over.

If bulls are unable to maintain the price above the 20EMA, it will be a sign that bears are selling on rallies. The bears will attempt to lower the price below $10, and then resume their decline.

Related: ApeCoin drops 40% in 3 days despite the sale of Otherside metaverse land — here’s why

VET/USDT

VeChain’s (VET), has been consolidating in a wide range between $0.043 to $0.083 over the past few days. The support level of the range was reached, which has served as a strong floor for three occasions previously.

Daily chart VET/USDT Source: TradingView

Today’s bounce from $0.043 support suggests that buyers are vigorously defending the level. The VET/USDT pair could remain in the range if the buying momentum continues and the price rises beyond the 20-day EMA ($0.055).

Alternatively, if prices fall below the current level or 20-day EMA it will mean that demand has dried up at higher levels. The bears will attempt to lower the price of the pair below this range. If they succeed, the pair could resume its downward trend and fall to $0.034.

VET/USDT 4-hour chart. Source: TradingView

The price is now at $0.043, and the bulls will try to push it above the 20-EMA. It will indicate that the bears are losing their grip if they succeed. The pair could then reach the 50-SMA. A break or close above the 50-SMA could open the way for a rally to $0.065.

If the price falls below the 20-EMA, this will indicate that bears are buying on rallies to high resistance levels. The bears will attempt to lower the price below $0.043, and prolong the decline.

GMT/USDT

The STEPN (GMT), has been in an uptrend. Positive news is the fact that bulls have not allowed price to fall below the 20-day EMA (3.13). This indicates that bulls are still buying dips and the sentiment is positive.

Daily chart GMT/USDT Source: TradingView

Buyers will now attempt to push the price above $4.17 overhead resistance. The GMT/USDT pair could resume its uptrend if buyers overcome this obstacle. The pair may then attempt to rally to the psychological level of $5.

Buyers have an advantage due to the upsloping 20 day EMA, but the RSI is forming a negative divergence which suggests that bullish momentum could be weakening.

The selling may intensify if the price falls below the 20-day EMA. The price could then fall to the 50-day SMA ($2.08).

GMT/USDT 4-hour chart. Source: TradingView

The bears attempted to keep the price below 50-SMA, but they failed. This indicates that there is strong demand at lower levels. Bulls pushing the price higher than the 20-EMA will signal that selling pressure is decreasing. The price could then test the record $4.17.

If the price drops below the 20-EMA, this will indicate that bears have been active at higher levels. The sellers will attempt to lower the price below the 50 SMA. The pair could slide to $3 if they succeed in doing so.

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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