As usual, altcoins have been negatively impacted by Bitcoin’s recent downturn, but all is not lost. As Bitcoin and altcoins become oversold, opportunities for exploiting oversold bounces and tightly bound range trades arise.
ETH [coin_price coin=ethereum] is looking incredibly weak as the recent decline dropped the cryptocurrency through multiple supports. Increasing sell volume shows that bears are clearly in control. ETH has many stiff resistances to overcome, but the silver lining is that we are now presented with a fairly predictable trading range. Considering that ETH is hinged to BTC, traders could exploit oversold bounces and range trades where ETH becomes pinned between support and resistances shelves to generate quick profits.
Traders should watch the RSI on the 4-hour and daily chart for ETC and BTC as well as the ETC / BTC pairing as reversals from oversold conditions could present lucrative, quick, opportunities.
Bulls are currently in contention for $0.13 and both oscillators have flatlined in bearish territory, which hints at selling exhaustion as volume also tapers off. If ADA [coin_price coin=cardano] is unable to hold $0.13 it could fall to $0.125 where sellers have previously shown interest.
Entries at $0.125 and below are favorable as ADA should recover to the $0.16 resistance if Bitcoin price improves.
XRP [coin_price coin=ripple] has spent the week bouncing between $0.42 and $0.46, as $0.425 functions as the line in the sand that bulls refuse to relinquish. $0.52 remains a stiff overhead resistance, and buyers have tended to show up around $0.43. A drop below $0.425 would open the doors for a precipitous fall as low as $0.245 whereas a move above $0.47 would provide the opportunity for XRP to re-test resistance at $0.50 and $0.525.
Currently, the risk to reward ratio negates opening new positions as XRP continues to decline. A high volume move above the descending trendline at $0.45 may produce a quick trading opportunity.
Binance Coin (BNB) 4-Hour Chart
As demonstrated by the 4-hour chart, BNB [coin_price coin=binance-coin] is very active during Bitcoin rallies and corrections. Purchasing volume has increased as sell volume tapers off and BNB appears to be settling into a tighter range as indicated by the Bollinger Band indicator.
BNB price is well above the 100-hour moving average (MA), and the 50 MA is crossing above the 20 and aligned at the 61.8% Fib retracement level. The weekly and 4-hour chart show BNB consolidating. At the time of writing, both the RSI and Stoch waver near bullish territory as BNB somewhat indecisively consolidates into a tighter range.
BNB is likely to rally to $14.26 on a Bitcoin breakout to $7,800 and gains above $14.26 could lead BNB back to $15.00.
Where do you think Altcoin prices will go this week? Let us know in the comments below!
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