One of the main challenges for crypto investors at the end of a downtrend is finding the best cryptocurrencies to buy. In this article, we review the top 5 cryptocurrencies of the week.
Many traders are waiting for Bitcoin to break the $20,000 level. These people prefer not to buy until this support is broken. The intra-chain MVRV-Z Score indicates that the market will continue to see further declines before reaching the price floor.
Top 5 cryptocurrencies these days in the cryptocurrency market
The MVRV-Z index compares the current price of Bitcoin with its fair value. Alex Krueger, an economic expert and digital currency trader, believes that the volume of Bitcoin transactions in June has set a new record. Normally, the increase in trading volume in bear markets will indicate coordinated selling by traders.
Increasing the volume of transactions when the market is bearish will lead to the formation of a price floor in most cases. If Bitcoin takes a trend similar to the previous price floor, we will most likely see the end of the downward cycle in June.
The US stock market and the S&P500 index have a strong correlation with the price of Bitcoin. In the recent Federal Reserve meeting, the US labor market report in June was discussed. This news is likely to have a direct impact on the S&P 500 stock price. Will Bitcoin be able to form a price floor and start an upward movement? To answer this question, we will examine the chart of the top 5 cryptocurrencies of the week.
Read more: Bitcoins in 2022
Bitcoin (BTC) chart review
By examining the chart of the largest cryptocurrency in the market, we notice that on January 1 (July 10), the BTC daily candle hit a long shadow at the 20-day exponential average (EMA 20 – blue line in the picture). This shadow indicates that traders are selling at the resistance level ($21,396). Sellers continued to push the price of Bitcoin below $19,637. In the last few days, the momentum of the downward movement has slowed down.
The current state of the chart indicates fatigue in the market and uncertainty among buyers and sellers. Buyers are currently trying to push Bitcoin back above $19,637. If these people manage to push BTC to new levels, the next resistance for Bitcoin will be the 20-day exponential moving average (EMA 20).
In the event that Bitcoin If it can break above the $22,000 level, it is likely that the market will begin an uptrend. In this case, Bitcoin could rise to its 50-day SMA (red line on the chart) at $25,938.
If the buyers fail to push the price of BTC, the price of this cryptocurrency will fall to the lower levels of $17,960 and $17,622. On the 4-hour chart of BTC, we see a lot of strength from the sellers. They are strongly defending the resistance of the 20-day EMA ($19,348). Other reasons for the bearishness of the market include the downward slope of the moving averages and the position of the relative strength index (RSI) in the negative area.
A price break above the 20 candlestick EMA could somewhat invalidate BTC’s short-term bearish outlook. In a bullish scenario, the next price target for Bitcoin would be the 50 candlestick simple moving average at $20,131. By reaching this level, sellers will also increase. If the buyers win the fight against the sellers, the price of Bitcoin will first rise to $21,000 and then to $22,000.
Read more: The best cryptocurrency to invest in 2022
Checking the Shiba Inu chart
Another one of the top 5 cryptocurrencies of the last week of the cryptocurrency market, Shiba Inu Is. This interesting coin meme has been oscillating in a narrow range close to the chart’s moving averages for a long time. Shiba Ino buyers are trying to avoid further losses by creating a new higher low near $0.000009.
In general, price suffering and uncertainty indicate the balance between the power of buyers and sellers. After the indecisive period ends, there will be a strong movement in the upward and downward direction. If Shiba Inu breaks above its 50-day simple moving average ($0.000010), the price of this memecoin will likely jump to $0.000012 and then $0.000014. The resistance at $0.000014 is the boundary between Shiba Inu’s uptrend and downtrend.
If the bearish scenario occurs, Shiba Inu has lost the support at $0.000009 and the conditions for this fall meme coin It was reduced to 0.000007. In the 4-hour chart, we see a symmetrical triangle pattern. The Shiba Inu price has been moving between the EMA and triangle support for a long time.
If this support is lost, $0.00009 will be the Shiba Inu’s next target. If Shiba Inu buyers can push the price above the 20 candlestick EMA, the next target will be the ceiling resistance of the triangle pattern. If the triangle ceiling breaks, the Shiba Inu will rise to $0.000011 and $0.000012.
Read more: The future of digital currencies in 2022
Investigating the price behavior of Palgan (MATIC)
Polygon is the third currency in the list of top 5 cryptocurrencies of the cryptocurrency market. The price of this cryptocurrency hit the resistance of $0.61 on June 26 (July 5). Buyers failed to break this resistance and the price of Paligan fell to the 20-day EMA ($0.50). The long shadows seen on the MATIC June 30 (July 9) daily candle indicate that buyers are supporting near the price floors and preventing the cryptocurrency from falling further.
MATIC has been fluctuating within a short distance of its 20-day EMA for the past few days. Buyers are trying to break this resistance level. If the buyers are successful in this mission, the price of Palgan will rise to $0.61.
Among other interesting signs observed in the chart MATIC currency, we can refer to the positive divergence of RSI (Relative Strength Index). This divergence indicates the possible weakness of the sellers’ power and the return of the short-term upward trend. Polygon’s target will be the $0.75 range after breaking through the $0.61 resistance.
If the buyers do not succeed and the sellers dominate the market, the price will lose the support level of $0.41 and attack towards the support of $0.31. In the MATIC 7-hour chart, buyers managed to push the price above the downtrend line in the short term. The psychological resistance of $0.50 has prevented the price from moving further up.
Sellers strengthened in this area and pushed Metic back to $0.41. If the price rises from the current levels, it means that buyers have increased their activity at the price floors. In this case, the next target for buyers would be the $0.50 level. After this level, resistances of $0.55 and $0.61 will be the next targets for MATIC.
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Examining the Cosmas chart (ATOM)
Cosmas (ATOM), another top 5 cryptocurrency in the market last week. After a long downtrend, ATOM is now nearing its price floor. Buyers of this cryptocurrency managed to push the price above the 20-day moving average ($7.84) on June 1. Resistance ahead of ATOM is currently within the range of the 50-day simple moving average ($8.81).
The current relative strength index (RSI) in all the top 5 cryptocurrencies of the market indicates the possibility of a price floor and the beginning of an upward trend. In addition to RSI, the neutral slope of the 20-day exponential moving average is also considered as another possible reason for reducing the selling pressure prevailing in the market.
If buyers can push the price above the 50-day SMA, COSMOS’s chances of a price jump to $10.84 and then $12.50 will increase. If the price falls to the $6.89 support, the bullish outlook will lose its credibility altogether.
Price ATOM cryptocurrency In a bearish scenario, it will fall to the $5.55 support. The four-hour Cosmas chart shows that buyers are looking to turn the 50 candlestick ($8) moving average into new support.
Buyers will be encouraged to test the $8.75 resistance if the price breaks above the current levels and successfully breaks the $8.38 resistance. Cosmas will easily reach the psychological resistance of $9 if it crosses $8.75. If the price of this cryptocurrency falls below the moving average, the price of ATOM will drop to $7.18 and then $6.89.
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Ipcoin (APE) chart review
The last currency from the list of the top 5 cryptocurrencies in the market last week is called APE. ApeCoin buyers on June 27 (July 6) pushed the price of this meme coin above its 20-day moving average ($4.69). The buyers’ success didn’t last long, and the sellers added to the downward pressure, bringing the price back below the 20-day EMA.
The RSI indicator of market favorite MimeCoin is near the middle axis, and ApeCoin’s 20-day EMA also has a neutral slope. All these factors indicate that the downward pressure on the Apecoin chart is waning.
If buyers can price Apecoin above the 20-day moving average, the situation of this meme coin will change completely. After Ipecoin crosses the 20-day EMA, the 50-day SMA ($5.72) will be the next resistance level of Ape. Sellers show more resistance at this level. If the price breaks below the $4.21 support from the current levels, the next target for IPCoin will be $3.85.
One of the interesting points of the four-hour chart of IPCoin is the formation of a symmetrical triangle pattern. This pattern indicates doubt and uncertainty in the market. Both moving averages on the chart have a neutral slope, and the RSI indicator is also located on the middle axis in this area.
All these data give them balance and lack of power on the side of buyers and sellers. If Apecoin breaks below the triangle pattern, the sellers will regain their strength and push the IP price down to 3.78 (the ultimate target of the symmetrical triangle pattern). The price passing through the ceiling of the symmetrical triangle pattern will also strengthen the buyers and the price of Apecoin as one of the top 5 cryptocurrencies in the market will reach the resistances of $5.38 and $5.57.
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What do you think about the top 5 cryptocurrencies in the cryptocurrency market last week? Are cryptocurrencies close to their price floor? Please leave your comments in the comments section duplicate share it.
Source: cointelegraph