Bitcoin price’s tight trading range suggests that a breakout is possible and ADA, XLM, AAVE, and CFX are likely to follow.
The long weekend produced no changes in Bitcoin price, the coin continued to trade in an increasingly tight range.
Bitcoin’s inability to break above $30,000 has attracted profit-taking in several altcoins, but some have posted shallow pullbacks. This shows that traders are holding their positions in anticipation of an upward move.
Then, it is basic to analyze some altcoins behavior that could rise and start an uptrend if Bitcoin price moves higher.
Bitcoin Price Analysis
Bitcoin has been trading within a narrow range for the past two days, indicating indecision between bulls and bears
If the price bounces from the 20-day EMA strongly, it will suggest that sentiment remains positive and traders are buying during dips. A rally above USD 29,200 could improve the prospects for a rise to USD 30,000 and subsequently to USD 32,500.
Cardano Price Analysis
Cardano has not fallen below the 20-day EMA (USD 0.37), indicating demand at lower levels. ADA/USDT could first rise to the neckline of the inverse head and shoulders (H&S) pattern. A break and close above this resistance would signal a possible trend reversal. After that, the pair could rally towards the pattern’s target at USD 0.60.
Conversely, if the price faces rejection of the downtrend line, it will imply that the bearish are active at higher levels. Selling could accelerate below USD 0.37 and the pair could plummet to the 200 simple moving average (SMA).
Stellar Price Analysis
Stellar broke down from USD 0.12 upper resistance level, and the price is approaching the 20-day EMA (USD 0.10). Bulls are likely to buy on dips toward the 20-day EMA.
Equally, if the price turns lower and breaks below the 20-day EMA, it will suggest that the bulls are losing their grip. Then, the pair could fall to the 200-day SMA (USD 0.09). This is a decisive level for the bulls because if it is broken, the pair may fall to USD 0.07.
Aave Price Analysis
AAVE has turned down from USD 82 upper resistance level, which indicates that the bearish are fiercely protecting this level. They have taken the price below the immediate support of the 20-day EMA (USD 75).
If the bulls break above this barrier, the pair will complete an ascending triangle pattern. This setup has a USD 100 target. This bullish view will be invalidated if the price continues to decline and breaks below the uptrend line. The pair could drop to USD 68 and subsequently to USD 64.
CFX Price analysis
Conflux (CFX) has been in a corrective phase over the past few days, but one small silver lining is that the bulls are trying to defend the 20-day EMA (USD 0.36).
If the price bounces from the current level, the CFX/USDT pair could reach the downtrend line. This is an important level for bearish traders to keep an eye on, as a break above it could open the door for a possible rebound to USD 0.44 and subsequently to USD 0.49.
On the other hand, if the price breaks down and holds below the 20-day EMA, it will suggest that bulls are rushing to exit. That could attract more selling, driving the price towards the next support at USD 0.30.
By Marina Meza
