LTC, XMR, AAVE and MKR rally as Bitcoin stalls below $31K

Bitcoin (BTC) has been trading in a narrow range for the past few days, but that hasn’t taken the shine off its astonishing 84% rally in 2023. A strong correction in the price of bitcoin has fueled buying in many altcoins, which have risen sharply from their yearly lows.

As the second half of the year begins, the big question on every investor’s mind is, will the rally continue? CoinGlass data shows that there have only been three negative monthly closes in July since 2013, and the biggest decline was 9.69% in 2014. This shows that the bulls have got a slight edge.

A large part of the latest phase of the rally in bitcoin and altcoins was driven by hopes that the United States Securities and Exchange Commission will approve one or more applications for a spot bitcoin exchange-traded fund. Any adverse news on this front can turn the sentiment bearish and result in sharp selling.

However, for now, bitcoin and select altcoins are showing strength. Let’s analyze the charts of top-5 cryptocurrencies that can continue their upward movement in the next few days.

bitcoin price analysis

Bitcoin continues to trade near a tough overhead resistance at $31,000. This suggests that the bulls are in no hurry to book profits as they expect another upside move.

Typically, a tight consolidation resolves to the upside near a key overhead resistance. The rising 20-day exponential moving average ($29,278) and the relative strength index (RSI) in the positive zone indicate that the road of least resistance is to the upside.

If the bulls can push the price above $31,000 and sustain it, the BTC/USDT pair is likely to start the next phase of the uptrend. The bullish momentum could propel the price above the immediate $32,400 resistance. If this happens, the pair may continue to move north towards $40,000.

If the bears want to make a comeback, they will need to drop below the 20-day EMA and sustain the price. The pair could then decline towards the 50-day simple moving average ($27,622).

Both the moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. The price has been stuck between $31,431 and $29,500 for some time now.

The buyers need to drive and hold the price above the $31,431 resistance to signal a bullish recovery. Alternatively, a break and close below the $29,500 support could start a deeper correction towards $27,500.

litecoin price analysis

Litecoin (LTC) soared above a descending channel and the overhead resistance at $106 on June 30, indicating the resumption of the uptrend.

Bears pushed the price below the breakout level of $106 on July 1, but bulls bought on the decline. If buyers sustain the price above $106, it increases the chances of a continuation of the uptrend. The LTC/USDT pair could then rise higher towards the overhead resistance area between $134 and $144.

Contrary to this view, if the price declines and sustains below $106, it will signal that the bears are selling at higher levels. This could drag the price to the $100 psychological level and then to the breakout level from the channel.

The 4-hours chart shows that the bears are attempting to hold the $112 level strongly, but they are struggling to hold the price below $106. This shows that the bulls are buying at lower levels. The 20-EMA and RSI rising in the overbought zone indicate that the buyers have an edge.

If the price sustains above $112, the pair could start the next phase of the uptrend towards $126. On the downside, the first support is at the 20-EMA and then $98.

monero price analysis

Monero (XMR) climbed and closed above the descending trend line on June 23, invalidating the developing descending triangle pattern.

The failure of a bearish pattern is generally a positive sign as it traps several aggressive bears, resulting in a short selling pressure. This can be seen in the XMR/USDT pair which moved from $150 on June 23 to $171 on June 27.

After a sharp rally, the price was swinging between $171 and $160 for the past few days. Consolidation is a positive sign as it shows that the bulls are holding their positions as they are looking forward to another leg higher.

If buyers propel the price above $171, the pair could start the next uptrend. The pair can then rise higher towards $187. To regain control, the bears need to push the price below the 50-day SMA ($149).

The 4-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. If buyers push the price above the triangle and hold, it would suggest that the uncertainty between the bulls and bears has resolved in favor of the buyers. This could be a sign of bullish resumption. The pattern target for this setup is $182.

This positive outlook will be invalidated in the near term if the price turns down and breaks below the triangle. After that the pair can decline towards $148.

Connected: Why did the price of Litecoin increase today?

awe price analysis

Aave (AAVE) has been trading inside a descending channel pattern for the past several weeks. On June 25, the price broke below the resistance line of the channel but the bulls stopped the correction at the 20-day EMA ($61.69).

This suggests a change in sentiment from selling on the upside to buying on the downside. The price has again reached the resistance line. Frequent retesting of the resistance level within a smaller interval weakens it.

The 20-day EMA and RSI rising in the positive zone indicate that the path of least resistance is to the upside. If buyers push the price above the channel and sustain, the AAVE/USDT pair could start a fresh increase towards $84.

The 20-day EMA remains an important support for the downside. A break and close below this level would suggest that the pair could spend some more time inside the channel.

Both the moving averages are trending upward on the 4-hours chart, and the RSI is in the positive zone, which indicates that the buyers are in control. If the bulls turn the descending trend line into support, the pair could rise higher to $76.

Alternatively, if the price drops and sustains below the downtrend line, it will signal that the bears remain active at higher levels. Then the pair may decline to the moving averages. A break below the 50-SMA could open the door for a possible decline to $62 and then $58.

producer price analysis

Maker (MKR) is trying to move fast. The bulls saw a decline in the moving averages between June 24 and 28, indicating demand at lower levels.

The 20-day EMA ($725) has moved up and the RSI is in the overbought zone, indicating bullish dominance. Buyers pushed the price above the downtrend line on July 2, but the long wick on the candlestick indicates strong selling at higher levels.

A small plus in favor of the buyers is that they stick to their word. This increases the chances of a rally above the downtrend line. If this happens, the MKR/USDT pair could rise towards $979. The first sign of weakness would be a drop below $772. This could start a deeper correction towards the 20-day EMA.

The pair closed above the downtrend line but the rally is facing selling at higher levels. The bears are trying to trap the aggressive bulls by pulling the price below the downtrend line. If they do, the pair could decline further to the 20-EMA. This remains a key level to watch as a break below it will tilt the gains in favor of the bears.

Conversely, if the price corrects above the current levels and breaks above $900, it will signal that the bulls have turned the descending trend line into support. This could start a rally towards $941.