Ana Sayfa English Top 5 cryptocurrencies to watch this week: BTC, XLM, CRO, BNB, LTC

Top 5 cryptocurrencies to watch this week: BTC, XLM, CRO, BNB, LTC

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Data from Skew shows Bitcoin’s (BTC) spot volume on LMAX Digital, an exchange that mainly caters to institutions, has overtaken retail-oriented exchanges. This signals that institutional investors could be building up positions as they expect the price to move higher in the future.

Along with spot purchases, institutional investors’ participation in the derivatives market has also increased. Data from Arcane Research shows that a record number of investors are taking delivery of Bitcoin from the Bakkt Bitcoin exchange.

Another metric that can be useful for traders is volatility. Bitcoin options data shows that the implied volatility of at the money options has dropped to a 16-month low. This suggests that traders do not expect a large down move in the near future, hence, they are not willing to pay a greater amount to hedge their positions.

Although data suggests that institutional investors are positioned for an upside move, retail traders should keep a close watch on the price action and take large bets only after a trending move starts.

Let’s study the charts of the top-5 cryptocurrencies that could start a trending move next week.

BTC/USD

Bitcoin (BTC) has been holding above the 20-day exponential moving average ($11,137) for the past few days. The buyers purchased the dip to the $11,165 support on Oct. 20, which suggests accumulation at lower levels.

If the bulls can push the price above the downtrend line, the BTC/USD pair could retest the $11,719 resistance. A breakout of this level may resume the up-move with the first target at $12,000 and then $12,460.

Both the short-term and the long-term moving averages are sloping up and the relative strength index is above 61. This suggests that the bulls are in control.

This positive view will be invalidated if the pair turns down from the downtrend line and plummets below the 20-day EMA. Such a move could pull the price down to the next support at $10,500.

The 4-hour chart has formed a bearish descending triangle pattern that will complete on a breakdown and close (UTC time) below $11,165. This bearish setup has a pattern target of $10,611.

However, if the bulls can propel the price above the downtrend line, the bearish pattern will be invalidated. Such a move could attract short covering by the bears, resulting in a rally to $12,000.

The gradually upsloping 20-EMA and the RSI in the positive territory suggests a minor advantage to the bulls.

XLM/USD

Stellar Lumens (XLM) broke below the 200-day simple moving average ($0.077) on Sep. 21 but the bears could not capitalize on this move and sink the price below $0.066841. This shows buying by the bulls at lower levels.

The XLM/USD pair has formed an ascending channel and the bulls are attempting to push the price above the overhead resistance at $0.084584. Although the bears defended the overhead resistance on Oct. 17, the bulls have not given up much ground.

If the pair stays above the moving averages, the buyers will make one more attempt to drive the price above $0.084584. If they succeed, the pair could start a new uptrend that may rally to $0.10.

The gradually upsloping moving averages and the RSI in the positive zone suggest that the bulls have the upper hand.

The pair had broken above the channel but the bulls could not clear the hurdle at $0.084584. However, on the downside, the bears have not been able to drag the price below the 38.2% Fibonacci retracement level of $0.079239.

This suggests that the bulls will again try to thrust the price above the overhead resistance. If they succeed, a rally to $0.091042 will be on the cards.

Contrary to this assumption, if the bears sink the price below the 20-EMA, a drop to $0.076546 is possible. A break below this level could result in a decline to the support line of the channel.

CRO/USD

The descending triangle completed on Oct. 14 when Crypto.com Coin (CRO) plummeted and closed (UTC time) below the $0.144743 support. This bearish setup has a target objective of $0.10607.

However, the bulls might attempt to defend the 200-day SMA at $0.121. A bounce off this level could retest the breakdown level at $0.144743. In a downtrend, traders sell on rallies to the 20-day EMA ($0.144) as the path of least resistance is to the downside.

Hence, if the CRO/USD pair turns down from the 20-day EMA, it will suggest that the sentiment is bearish. The sellers will then again try to sink the price below the 200-day SMA. If they succeed, the decline could extend to $0.10607.

The 20-day EMA is sloping down and the RSI has plummeted deep into the oversold territory, which suggests that the advantage is with the bears. However, a relief rally cannot be ruled out in the short-term.

The RSI on the 4-hour chart has also plunged deep into the oversold territory. This suggests panic selling and usually, after such a round of such intense selling, a minor pullback occurs.

Any relief rally is likely to face selling at the 20-EMA as bears will try to consolidate their advantage.

This bearish view will be invalidated if the pair rises and sustains above the breakdown level of $0.144743. Until then, every rally is likely to be viewed as a selling opportunity.

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