According to crypto analyst Filip L, Ethereum Classic (ETC) is pointing to a very bullish breakout. The analyst says that Ripple (XRP) has a hall pass to go higher. Binance Coin (BNB) is taking a breather with a relief rally to $300. Analyst John Isige explains how long this will take. We have compiled the analysis of the analysts’ three altcoin projects for our readers.
“ETC requires strict and comprehensive trade management”
Altcoin price action is showing signs of bouncing a little higher. First, only a break above the flat and easy red descending trendline is a bullish signal. Second, the rally in the equity markets helps boost the sentiment. Because of these, it is possible to show more upside potential.
However, there are a few drawbacks that ETC must face. There is a need for strict and realistic trade management while making the process in this rally. The first snag is the 200-day Easy Moving Average (SMA) at $27.18, which also acts as an upper bound in July and throughout September. Second, the 55-day SMA at $29 is about to trigger another take-profit event after the 200-day SMA, which may have slowed the rally. Also, the 55-day SMA at $32.90 will likely be the end of the line.
If the downside risk starts to deteriorate a little more, it’s possible that it will restore interests later this week. With still some big tech names like Apple, the feeling can easily change. In this case, it can turn into a cramp. This means that a break above the red descending trendline will be a fabricated bull trap and lead to a false retracement to $22. From there, more downsides are on the table, with $20 for a third test.
“Altcoin price sees room for opportunity”
Ripple price action will bounce broadly as its biggest rival, the stronger dollar, takes a firm foothold for the second day. For now, XRP has not been as affected by the weakening dollar as Bitcoin and other peers. It would be true to think it would have a delayed effect. This means that the XRP price has to do something. Breaking the $0.48 level is not a big deal. From there, the truth probably sails for $0.56. In this middle, it is necessary to reserve 21% interests on the way.
Koindeks.com As you follow on , the current decline in the dollar is due to the hope that the Fed will start to slow down the rate hikes. However, if the Fed continues an aggressive policy stance, it indicates that the market diverged too soon, causing the dollar to rise again. In such a scenario, XRP will likely drop to $0.4228. It is likely to even drop to $0.3710 in the coming weeks. In the middle, the middle elections are also on the agenda as a risky event.
Is it possible for BNB to rise to $300?
The break of BNB to $290 comes after an ascending triangle confirmed a breakout on the four-hour chart. This bullish pattern is characterized by price moving in a narrow range. It also depicts a fevered effort amid bulls and bears. A properly formed triangle requires the price to touch the foothold and resistance at least five times. A rise is expected when buying pressure outweighs selling pressure at the resistance level.
BNB trading above the horizontal resistance at $276 confirmed a 5.08% move from the breakout to $290, which was calculated assuming the break in the middle of the triangle’s widest points.
Despite the calm at $290, the altcoin price is largely in the hands of the bulls. The MACD indicator has moved above the average line (0.00). Hence, it adds credibility to the bullish outlook. Stubbornly bullish traders will have to wait for an established break above $290 before settling everything with long positions tied to $300.
BNB saw a 105% increase in transaction volume as individual investors returned to the market. In the middle, Santiment’s on-chain information shows a huge increase in the number of previously idle BNBs. The Age Consumed metric tracks the movement of previously idle tokens. It does this by multiplying the measure of daily address-changing BNBs by the days since their last movement. The spikes in this on-chain model indicate that a large collection of previously idle tokens is in motion. This eventually translates into high volatility.
The Age Consumed metric accurately determines the incoming volatility. However, it does not determine the direction in which BNB will move. Therefore, traders and investors need to rely on other indicators to make truthful decisions. If interests above $290 turn out to be a daunting mission for the bulls, a pullback is not far off. Consequently, new entry statuses will tend to open as BNB seeks foothold. Therefore, traders need to lock in profits as the price recovers.