Most Promising Cryptocurrencies to Monitor This Week
Bitcoin, which is the largest cryptocurrency in terms of market capitalization, is struggling to sustain any price level during the current pullback, indicating a lack of demand at higher levels. Does this mean that the bull trend is not over and the institutional investors are abandoning the cryptocurrency markets. No, investors are still interested in cryptocurrencies. So, let’s have a look at several cryptocurrencies that could start trending moves this week.
Bitcoin’s brief breakout couldn’t clear the hurdle at the 200-day simple moving average ($41,014) on May 26 as well as May 27. The relative strength index (RSI) near the oversold zone implies the bears are in charge. If the BTC/USD pair surpasses the $33,000 support, the next stop could be the $30,000 to $28,000 support zone. If this zone also gives away, the pair may experience panic selling as well as a drop to $20,000 is possible.
The longer the price stays below 200-day SMA, the harder it will be for the bulls to start the next leg of the uptrend. Nonetheless, if the price goes up from the current level and rises above the 200-day SMA, it will indicate strong buying at lower levels. That could clear the track for a possible rally to the 61.8% Fibonacci retracement level at $48, 231.
Cryptocurrencies and interesting details
Bitcoin is quite popular all over the world, but there are other interesting cryptocurrencies as well, and polygon (MATIC) is one of them. It bounced off the 20-day EMA ($1.58) recently, indicating that bulls are buying on dips to this support. The upsloping 20-day EMA, as well as the RSI in the positive territory, implies the path of least resistance is to the upside.
But, the MATIC/USDT pair created a symmetrical triangle pattern, indicating indecision among the bulls and the bears. If bulls help to drive the price above the resistance line of the triangle, the pair could reach $2.70 and then start its journey to the pattern target at $4.20.
Contrary to the assumption, if the price falls from the resistance line of the triangle, the pair could extend its stay inside the triangle. A break and close below the triangle will indicate weakness and could result in a fall to $0.80.
EOS also belongs to the list of promising cryptocurrencies. It attempted a recovery, which fizzled out at the 38.2% Fibonacci retracement level at $7.89 on May 27. Nevertheless, the positive sign is that the bulls have not allowed the price to decline below $5.60 support. This indicates that traders are not waiting for a deeper drop to buy.
If bulls can support and close the price above the 20-day EMA ($6.95) it will imply that supply exceeds demand. That factor could open the doors for a rally to the 50% retracement level at $9.23 and then to the retracement level at $10.57.
The bullish view will negate if the bears stall the next pullback attempt at the 20-day EMA or at $8.79. Such a move will increase the chance of a break below $5.60. If that occurs, the EOS/USDT pair could fall to the 200-day SMA ($4.52) then to $3.57.
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