BTC, AVAX, MATIC, EGLD, MANA

Bitcoin (BTC) is witnessing a tough dispute near the $58,000 mark, but that hasn’t stopped selected altcoins from hitting new all-time price highs. This shows that traders are looking at the fundamentals of specific currencies.

One of the best performing altcoins recently was Avalanche (AVAX), which soared more than 120% in November. The currency had already been catching the attention of traders before the announcement that accounting firm Deloitte plans to build its disaster relief platforms on the Avalanche blockchain.

Daily view of the crypto market. Source: coin360

In another step in the growth of cryptocurrency adoption, El Salvador’s President Nayib Bukele announced the launch of Bitcoin City, which will be powered by geothermal energy and initially financed by $1 billion in Bitcoin bonds.

Strong buying at lower levels could raise Bitcoin above $60,000. Will altcoins participate in the recovery? Let’s study the charts of the top 5 cryptocurrencies that can attract traders’ attention in the short term.

BTC/USDT

Bitcoin reversed direction from the $55,600 recorded on Nov. 19, but the rally is facing resistance in the 50-day simple moving average ($60,187). The moving averages are on the verge of a bearish cross and the Relative Strength Index (RSI) is in the negative area, indicating that bears are coming back with strength.

BTC/USDT daily chart. Source: TradingView

If the price drops from its current level, the bears will try to extend the correction by pulling the BTC/USDT pair below USD 55,600. If that happens, the next stop could be the strong support zone between $52,500 to $50,000.

If the price rebounds above this zone, bulls will try to push the pair above the moving averages and downtrendline. Such a move will indicate that the correction phase may be over. The bulls will then try to raise the price above the historic high of $69,000.

4-hour BTC/USDT chart. Source: TradingView

The 4-hour chart shows that bears pulled the price below the strong support of $58,000 but failed to seize the advantage. Bulls bought the fall and pushed the price back above the 20-day exponential moving average.

If the price stays above $58,000, the pair could rally towards the downtrendline. A break and a close above that resistance could indicate that bulls are at an advantage. The pair could go up to $62,000 and later to $67,000.

On the other hand, if the price drops below $55,600, it will signal the possible start of a deeper correction.

AVAX/USDT

Avalanche is in a strong uptrend and has been hitting new all-time highs in recent days. Bulls pushed the price above the 200% Fibonacci extension level at $146.18 today, but the long fuse in the day’s candlestick shows profit taking at higher levels.

AVAX/USDT daily chart. Source: TradingView

The rising 20-day Expnential Moving Average (96) indicates that bulls are in charge, but the RSI near 80 suggests the rally may be overheated in the near term. This could result in a small correction or consolidation in the coming days.

If the price drops from its current level, $110 and the 20-day EMA could act as strong support. A consistent rally will suggest that bulls are viewing declines as a buying opportunity. The pair could then march towards the 261.8% Fibonacci extension level at $175.58.

Contrary to this assumption, if the price drops below the 20-day EMA, it will suggest that traders are rushing to exit. This could push the AVAX/USDT pair to $81.

4-hour AVAX/USDT chart. Source: TradingView

The pair dropped from $147, indicating aggressive profit-taking at higher levels. Bears will now try to pull the price towards the 20-day Exponential Moving Average, which will likely act as strong support.

If the price rallyes, this will indicate a strong buy on the declines. Bulls will then try to resume the uptrend by pushing the pair above $147.

Contrary to this assumption, if the price drops below 20-EMA, the selling could accelerate and the pair could drop to $110. Such a move would suggest that bulls may be losing control. The pair could further fall to the 50-day Simple Moving Average.

MATIC/USDT

Polygon (MATIC) has been trading within an ascending channel for the past few days. Bulls pushed the price above the resistance line of the channel on October 28th and 29th, but failed to sustain the breakout. This may have prompted short-term traders to liquidate their positions.

MATIC/USDT daily chart. Source: TradingView

The bears again successfully defended the resistance line on November 3rd. This started the downward journey towards the channel’s trendline. The drop in the 20-day EMA ($1.69) and the RSI just below the midpoint indicate a small advantage for sellers.

If the price drops from the current level, the MATIC/USDT pair may drop to the trend line. Bulls are expected to aggressively defend this level. If the price leaves the trendline and rallies above the 20-day EMA, it indicates that selling pressure may be easing. This could signal the start of the journey north towards the resistance line.

Contrary to this assumption, if bears sink the price below the trendline, it could result in a dip below $1 psychological support.

4-hour MATIC/USDT chart. Source: TradingView

The 4-hour chart shows that bulls are trying to stage a rally of relief from the strong support zone between $1.50 to $1.40. The 20-EMA has started to rally and the RSI is near the center, indicating that selling pressure may be easing.

If bulls raise the price above $1.70, the pair could rise to $1.80. A pause and close above this level indicate strength. The pair could then begin its bullish move towards $2.15. On the downside, sales could accelerate if bears pull the price below $1.40.

EGLD/USDT

Bears tried to pull the Elrond (EGLD) below the breakout level at $303.03 on Nov. 16-18, but bulls bought the declines having seen the long tail on the candles. Strong buying on November 19 pushed the price above general resistance of $338.70.

EGLD/USDT Daily Chart. Source: TradingView

This rekindled the uptrend and the EGLD/USDT pair approached its default target of $427. The sharp rally pushed the RSI into the overbought zone, suggesting that a small consolidation or correction could be forthcoming.

First support on the downside is the breakout level at $338.70 and then the 20-day EMA ($325). If the price rebounds from any of these levels, it will suggest traders continue to buy declines. Bulls will then try to resume the uptrend with the next target at $500.

This positive view will be invalidated if the price falls and plummets below the $303 breakout level.

4-hour EGLDT/USDT chart. Source: TradingView

The 4-hour chart shows that bears tried to lock in the rally by $400, but bulls were unwilling to budge. Sustained buying at higher levels pushed the pair above the psychological barrier. The rise of 20-EMA and the RSI in the overbought zone indicate that bulls are firmly in charge.

The first important level to watch on the downside is $380. If bears pull the price below this support, the pair could drop towards the 20-EMA. A strong rebound from this support may keep the uptrend intact, but a dip below it will suggest that the bullish momentum may be weakening.

MANA/USDT

The Decentraland (MANA) fell from the 78.6% Fibonacci retracement level to USD 4.35 on November 20th. This indicates that traders may be selling high.

MANA/USDT Daily Chart. Source: TradingView

The MANA/USDT pair may now fall to immediate support at $3.50, and if this level gives way, the correction could deepen to the 20-day EMA ($3.11). If the price rebounds from any support, it will suggest that sentiment remains positive and traders are buying declines.

The bulls will then try to push the price to $4.36. A break and a close above that resistance could open the door to a high of $4.94. This positive view will be invalidated if the price remains low and breaks below the 20-day EMA.

4-hour MANA/USDT chart. Source: TradingView

The pair has been growing within an ascending channel pattern. The bulls’ failure to push the price above the resistance line may have led traders to liquidate positions, pulling the price below the 20-MME.

Both the moving averages have flattened out and the RSI has approached its midpoint, suggesting that the bullish momentum may be weakening. The pair may now fall to the channel’s trendline where buying could resurface.

If the price rebounds from the trendline, the pair may continue its bullish movement within the channel. Buyers will then try to push the price towards the resistance line. Bullish momentum may resume with a breakout and close above the channel.

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

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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