Bitcoin (BTC) and Ethereum’s ETH are showing signs of finding buyers at lower levels, which may be a bullish sign for other cryptocurrencies such as Monero (XMR), OKB, and RPL. The volatility of Bitcoin has decreased this week, and it is expected to form an inside-bar pattern on the weekly chart. Although the bulls have not been able to clear the overhead hurdle in the $30,000 to $31,000 zone, it is positive that they have not ceded ground to the bears. The S&P 500 Index has also been oscillating inside a range for the past few days, indicating that markets are awaiting a trigger to start the next directional move.
While the short-term price action is uncertain, analysts are getting bullish for the long term. Trader Titan of Crypto highlighted a potential signal on the Bollinger Bands monthly chart, which projects a rally to $63,500 in about a year. Although most major cryptocurrencies gave up some ground over the past week, there are still some pockets of strength. Let’s analyze the charts of five cryptocurrencies that may turn up in the short term.
Bitcoin turned down sharply from the resistance line of the symmetrical triangle pattern on May 6, indicating that the bears are not willing to let the bulls through. A minor positive is that the bulls have been buying the dips to the support line of the triangle as seen from the long tail on the day’s candlestick. The flattish 20-day exponential moving average ($28,819) and the relative strength index (RSI) near the midpoint do not signal a clear advantage either to the bulls or the bears. If the price breaks below the triangle, it will suggest that bears are trying to seize control. The BTC/USDT pair may first fall to $26,942 and then to $25,250. On the other hand, a break and close above the triangle will suggest that the bulls have absorbed the supply. That may start a rally to $32,400 where the bears are again expected to mount a strong defense.
Ether (ETH) faced a strong rejection above the psychological resistance at $2,000 on May 7. This indicates that the bears have not given up, and they continue to protect the overhead resistance levels. The 20-day EMA ($1,903) has flattened out, and the RSI is near the midpoint, indicating that the ETH/USDT pair may remain range-bound in the near term. The boundaries of the range could be between $2,000 and $1,785. A consolidation just below the local high is a positive sign. It shows that the bulls are in no hurry to book profits, increasing the possibility of a break above $2,200. On the contrary, if the price plunges below $1,785, it will suggest that bears have seized control. That could start a fall to $1,619.
Monero (XMR) is trying to stay above the moving averages, indicating that the bulls are attempting a comeback. The flattish 20-day EMA ($156) and the RSI just above the midpoint indicate a balance between supply and demand. If buyers thrust XMR price above the neckline of the inverse head and shoulders pattern, the advantage will tilt in their favor. The XMR/USDT pair may then start a new up-move. There is a minor resistance at $181, but if that is crossed, the pair may reach $187. Instead, if the price turns down from the current level or the neckline, it will suggest that the bears remain active at higher levels. The sellers will then try to yank the price below the $149-support, opening the door for a decline to $130.
OKB (OKB) is trading inside a large symmetrical triangle pattern. Generally, in this setup, traders buy near the support line and sell near the resistance. The bears are trying to maintain OKB price below the resistance line, but the bulls have been buying the dips to the support line of the triangle. The 20-day EMA ($19.99) has flattened out, and the RSI is just below the midpoint, indicating a balance between supply and demand. If the bulls can push the price above the resistance line of the triangle, the OKB/USDT pair may start a new up-move that could reach $29.30. On the other hand, if the bears sink the price below the support line, the pair may drop to $16.
Ripple (XRP) has been trading inside a descending channel for the past few weeks. The bulls are attempting to defend the support line of the channel, while the bears are selling on rallies to the resistance line. The 20-day EMA ($1.41) has flattened out, and the RSI is just below the midpoint, indicating a balance between supply and demand. If the bulls can push the price above the resistance line, the XRP/USDT pair may start a new up-move that could reach $1.96. On the other hand, if the bears sink the price below the support line, the pair may drop to $0.88.
In conclusion, the short-term price action for major cryptocurrencies is uncertain, but there are some pockets of strength that may turn up in the short term. Traders should keep a close eye on Bitcoin, Ethereum, Monero, OKB, and Ripple for potential trading opportunities.