Ethereum price gets back to $3K as institutional investors pile into ETH futures

Ethereum prices recovered on Sunday amid a market-wide upside correction while receiving an additional upside boost from a bullish JPMorgan & Chase report.

Ethereum’s native token Ether (ETH) staged a rebound on Sept. 26 following a massive decline earlier this week that saw its prices plunging to as low as $2,651 on Coinbase.

The ETH/USD exchange rate rose 3.63% to hit an intraday high of $3,030. The upside move amounted to a 14.3% upside retracement from the pair’s week-to-date low at $2,651, showing that traders attempted to retain their bullish bias despite potential headwinds ahead.

Last week, Ether prices fell due to a flurry of issues arising from China. On Monday, traders dumped crypto assets en masse after a tumult in China’s heavily indebted property market prompted a selloff across global stock markets.

A rebound move ensued later in the week but met with another selloff on Friday after People’s Bank of China reiterated that crypto transactions are illegal. Nonetheless, Ethereum bulls maintained their foothold and pushed prices back above $3,000, a psychological resistance level.

ETH/USD daily price chart. Source: TradingView.com

The sentiments were similar across some top crypto assets, with the benchmark cryptocurrency Bitcoin hitting an intraday high of $43,767 on Coinbase following a 2.49% upside move. Meanwhile, Uniswap exchange’s native asset UNI also fared higher by more than 19%, becoming the top-performing crypto asset at least in the previous 24 hours.

At the same time, Ethereum’s top rivals Cardano (ADA) and Solana (SOL) performed poorly, with ADA/USD dropping more than 5% and SOL/USD losing over 3% on a 24-hour adjusted timeframe.

Institutional demand

Ethereum gains also followed a bullish report thifrom JPMorgan & Chase.  The study noted that institutional investors have started increasing their exposure in Ethereum markets.

Analysts at JPMorgan credited the ongoing craze in the decentralized finance (DeFi) and nonfungible token (NFT) sector as the primary driver behind investors’ interest in Ethereum. They added that the 21-day average Ethereum Futures premium climbed to 1% over spot ETH prices, citing the Chicago Mercantile Exchange (CME) data recorded since August.

Ethereum Futures daily price chart. Source: TradingView.com

The JPMorgan report coincided with a record amount of Ether tokens getting withdrawn out of all crypto exchanges, as per data provided by CryptoQuant. At press time, the net ETH reserves on trading platforms had dropped to 18.44 million ETH compared to 23.94 million ETH a year ago.

Related: Ethereum drops more than Bitcoin as China escalates crypto ban, ETH/BTC at 3-week low

Independent analyst PostyXBT also anticipates a potential further price rebound in Ethereum markets, noting that the cryptocurrency’s latest declines had pushed it inside a classic accumulation range, as shown in the chart below.

ETH/USD weekly price chart featuring its latest accumulation range. Source: PostXBT, TradingView.com

“Weekly close equally as important for ETH today as price tests the previous range highs as support,” the analyst noted.

“Seems like a logical area to make a higher low and I have bought more here for long-term bags/swing trade. RR looks favorable after a 33% correction from the local top.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Continue reading

Derivatives data favors Ethereum bulls even with this week’s crash below $3K

Losing the $3,000 mark just days before Friday’s $1.55 billion ETH options expiry nearly doomed Ether longs, but derivatives data shows bulls are still in favor.

Ether (ETH) has been in a bearish trend since early September, and this week’s Evergrande-led market crash drove the price below $2,700 on Sept.20, its lowest level in 47 days. Curiously, just three weeks ago, Ether was testing the $4,000 psychological barrier, but this changed after mounting crypto regulatory concerns and the fear of China’s debt markets triggering a global sell-off intensified.

This week U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke to the Washington Post about renewed plans to regulate the crypto sector and the growing stablecoin market.

Ether’s negative price trend reversed on Sept. 22 after U.S. Federal Reserve Chairman Jerome Powell confirmed the continuation of the central bank’s monthly bond purchasing program. Powell also made clear that no interest rate hike should be expected in 2021.

Ether price at Bitstamp in USD. Source: TradingView

Even though the current $3,000 level represents a 25% retraction from the recent $4,000 peak, Ether price still reflects a 215% gain in 2021 and the network’s adjusted total value locked (TVL) jumped from $13 billion in 2020 to $60 billion, signaling strong adoption despite surging gas fees.

Bitcoin options aggregate open interest for Sept. 24. Source: Bybt.com

As shown above, bulls got caught by surprise because 72% of call (buy) instruments were placed at $3,200 or higher. Consequently, if Ether remains below that price on Friday, only $260 million worth of neutral-to-bullish call options will be activated on the expiry.

A call option is a right to sell Bitcoin at a predetermined price on the set expiry date. Thus, a $3,200 cut option becomes worthless if Ether remains below that price at 8:00 am UTC on Sept. 24.

Bulls still have an advantage in Friday’s $1.55 billion expiry

The 1.48 call-to-put ratio represents the difference between the $920 million worth of call (buy) options versus the $620 million put (sell) options. This bird’s eye view begs a more detailed analysis because some bets are far-fetched considering the current $3,000 level.

Below are the four most likely scenarios considering the current Ether price. The imbalance favoring either side represents the theoretical profit from the expiry. The data below shows how many contracts will be activated on Friday, depending on the ETH price:

  • Between $2,700 and $2,900: 61,900 calls vs. 72,000 puts. The net result is $27 million favoring the protective put (bear) instruments.
  • Between $2,900 and $3,000: 79,900 calls vs. 52,200 puts. The net result is $80 million favoring the call (bull) options.
  • Between $3,000 and $3,200: 82,500 calls vs. 37,300 puts. The net result is $136 million favoring the call (bull) options.
  • Above $3,200: 99,600 calls vs. 20,200 puts. The net result favors the call options by $255 million.

This raw estimate considers call options being exclusively used in bullish strategies and put options in neutral-to-bearish trades. However, investors typically use more complex strategies that involve different expiry dates. Moreover, there is no way to know if the arbitrage desks are fully hedged.

To win, bears need to keep Ether below $2,900

These two competing forces will show their strength, and the bears will try to minimize the damage. On the other hand, the bulls have decent control over the situation if the Ether price remains above $3,000.

The most important test will be the $2,900 level because bears have significant incentives to suppress the price at this level, even if momentarily. Although there’s still room for additional volatility ahead of the expiry, the bulls seem to be better positioned.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Continue reading

Price analysis 9/3: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, LINK

This week’s sharp rally in Bitcoin and Ether signals that bulls are back in control and altcoins are likely to follow.

Bitcoin (BTC) finally broke above the $50,500 resistance and Ether (ETH) has risen above the $4,000 mark. This suggests that there is growing interest in cryptocurrencies and several legacy finance companies are initiating steps to tap into this increasing demand.

One of the world’s largest independent asset managers, Franklin Templeton, has posted fresh job applications for medium to senior-level positions in crypto trading and research, according to Linkedin job postings.

Meanwhile, in Japan, financial conglomerate SBI Holdings is planning to set up one of the first crypto funds in the country by the end of November. Tomoya Asakura, the director and senior managing executive officer at SBI, said that the launch of a second fund will be explored depending on the success of the first one.

Daily cryptocurrency market performance. Source: Coin360

While crypto traders are cheering the recent run-up in several altcoins, JPMorgan analysts have warned their clients that the altcoin rally and nonfungible tokens (NFT) are getting frothy.

The analysts said that the altcoins share of the crypto market trading surged from 22% at the beginning of August, to 33%, which is high compared to historical standards. They believe the reason is “froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.”

Could Bitcoin sustain above $50,500 and resume its uptrend or will altcoins remain in focus? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bears successfully defended the $50,500 resistance on Sep. 2 but they could not pull and sustain the price back below the downtrend line. This could have attracted buying from the bulls who have pushed Bitcoin above $50,500 today.

BTC/USDT daily chart. Source: TradingView

If buyers sustain the price above $50,500, the BTC/USDT pair could rally to $60,000. This level may again act as a stiff resistance but if bulls can thrust the price above it, the pair could challenge the all-time high at $64,854.

If bulls drive the relative strength index (RSI) above the downtrend line, it will invalidate the negative divergence. That along with the upsloping 20-day exponential moving average ($47,584) indicate that the path of least resistance is to the upside.

This bullish view will invalidate if the price turns down from the current level and breaks below the 200-day simple moving average ($46,083). That could pull the price down to $42,451.67.

ETH/USDT

Ether picked up momentum after breaking above $3,377.89 and hit the $4,000 mark today. If bulls sustain the price above this psychological level, the biggest altcoin could challenge the all-time high at $4,372.72.

ETH/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($3,344) and the RSI in the overbought zone suggest that bulls are in control. If buyers push the price above $4,372.72, the ETH/USDT pair could start its journey toward the critical level at $5,000.

This may not be easy as bears are likely to have other plans. They are likely to mount a stiff resistance in the $4,000 to $4,372.72 zone. If the price turns down from this zone and breaks below $3,700, the pair may drop to the 20-day EMA.

A strong rebound off this support will suggest that the sentiment remains bullish. The buyers will then try to resume the up-move. Conversely, a break and close below the 20-day EMA will be the first sign that bulls may be losing their grip.

ADA/USDT

Cardano (ADA) broke above the $3 mark on Sep. 2 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. Although the price dipped back below $2.97 today, the bulls bought the dip and are again trying to drive the price above $3.

ADA/USDT daily chart. Source: TradingView

A breakout and close above $3.10 will signal the resumption of the uptrend. The ADA/USDT pair could then rally to $3.50. The 20-day EMA ($2.58) favors the bulls but the negative divergence on the RSI indicates that the bullish momentum may be weakening.

If bulls fail to drive the price above the overhead resistance, the pair may drop to the 20-day EMA. This is an important level for the bulls to defend. A strong rebound off it will suggest that the sentiment remains positive.

Conversely, a break below the 20-day EMA may pull the price to the breakout level at $2.47. A break below this support could start a deeper correction.

BNB/USDT

Binance Coin (BNB) has been trading between the 20-day EMA ($456) and the overhead resistance at $518.90. The long wick on the Sep. 2 candlestick suggests that bears are selling above $500 but the positive sign is that bulls are not giving up much ground.

BNB/USDT daily chart. Source: TradingView

The buyers will again try to push and sustain the price above $518.90. If they manage to do that, the BNB/USDT pair could pick up momentum and rally to $600. This psychological level may act as a resistance but if bulls clear this hurdle, the rally may extend to $680.

Conversely, if the price turns down from the overhead resistance and dips below the 20-day EMA, the pair may slide to $433. A break below this level will suggest that bears have overpowered the bulls. The pair may then decline to the 200-day SMA ($375).

XRP/USDT

The bulls pushed XRP above the downtrend line on Sep. 2, invalidating the developing bearish descending triangle pattern. The bears tried to pull and sustain the price below the downtrend line today but failed.

XRP/USDT daily chart. Source: TradingView

If bulls sustain the price above the downtrend line, the XRP/USDT pair could rally to $1.35. This level may act as a resistance and if the price turns down from it, the pair may trade between $1.05 and $1.35 for a few days.

The 20-day EMA ($1.15) has turned up and the RSI has risen above 64, indicating that bulls have the upper hand. A breakout and close above $1.35 could clear the path for a rally to $1.66. The bears will have to pull the price below $1.05 to signal a comeback.

SOL/USDT

The bears attempted to stall Solana’s (SOL) uptrend at $130 but the bulls were in no mood to relent. The buyers did not allow the price to break below the psychological support at $100.

SOL/USDT daily chart. Source: TradingView

Buying resumed on Sep. 2 and the bulls have extended the SOL/USDT pair to a new all-time high today. Vertical rallies are rarely sustainable and they usually result in sharp declines. The RSI above 88 also indicates the pair is overextended in the short term.

If the price turns down from the current level or $150, the first support is at the 38.2% Fibonacci retracement level at $115.75.

A strong rebound off this level will suggest strength and increase the possibility of a break above $150. The next target on the upside is $166.97. On the contrary, a break below $115.75 could pull the price down to the 50% retracement level at $106.29.

DOGE/USDT

Dogecoin (DOGE) broke above the 20-day EMA ($0.28) on Sept. 1 and bulls pushed the price above the downtrend line of the falling wedge pattern on Sept. 2. However, the long wick on the day’s candlestick showed that bears were selling at higher levels.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USDT pair has bounced off the 20-day EMA and the bulls have pushed the price above the wedge. If buyers sustain the price above $0.31, the pair could rally to $0.35. This level is likely to act as a strong resistance.

If the price turns down from $0.35, the pair may again drop to the 20-day EMA. A strong rebound off it will suggest that the sentiment is positive. A breakout and close above $0.35 could clear the path for an up-move to $0.45.

On the other hand, if the price turns down and breaks below the 20-day EMA, the pair may drop to the support line of the wedge.

DOT/USDT

Polkadot (DOT) has been sustaining above the breakout level at $28.60 for the past three days, indicating the start of a new uptrend. The rising moving averages and the RSI in the overbought territory indicate advantage to buyers.

DOT/USDT daily chart. Source: TradingView

If bulls drive the price above $33.84, the DOT/USDT pair could start its northward journey toward $41.40 and then to the pattern target at $46.83.

On the other hand, if the price turns down from the current level, the price may retest the breakout level at $28.60. If bulls flip this level into support, it may act as a launchpad for the next leg of the up-move.

A break and close below the 20-day EMA ($27.12) will be the first sign that the current breakout may have been a bull trap.

Related: How to prepare for the end of the bull run, Part 1: Timing

UNI/USDT

Uniswap’s (UNI) up-move turned down from $31.41 on Sept. 2, suggesting that the bears have not thrown in the towel yet. The price action of the past few days has formed a negative divergence on the RSI, indicating that the bullish momentum may be weakening.

UNI/USDT daily chart. Source: TradingView

If the price rebounds off the 20-day EMA ($27.91), the bulls will make one more attempt to push the UNI/USDT pair above the overhead resistance at $31.41. If they succeed, the pair may start its journey to $37.52 and then to $42.25.

Alternatively, if bears sink the price below the moving averages, the pair may drop to $25 and remain range-bound for a few more days. A break and close below the $25 to $23.45 support zone will signal that bears are back in the game.

LINK/USDT

Chainlink (LINK) had been range-bound between $24 and $30 for the past few days. The bulls pushed the price above the overhead resistance on Sept. 2 but they could not sustain the higher levels.

LINK/USDT daily chart. Source: TradingView

The bulls again bought the dip today and have propelled the price above the overhead resistance. If buyers sustain the price above $30, the LINK/USDT pair could rally to $36 and if that level is crossed, the up-move may reach $43.50, which is the May 19 intraday high.

The 20-day EMA ($26.99) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. Contrary to this assumption, if the price turns down and breaks below $30, it will suggest that the range-bound action may continue for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Continue reading

How cross-chain liquidity aggregation can shape the future of DeFi

What will ease the burden of DeFi users and remove some of the barriers to entry for newer market participants? This project sees the future of DeFi as multichain co-existence.

As decentralized exchanges now represent a significant amount of crypto trading volume, it is vivid that these platforms will play a big role in the smart economy of the future.

Automated market makers, in particular, changed the game by eliminating the need for order books entirely and replacing them with liquidity pools. This model was a win-win for both traders executing swaps and liquidity providers incentivized to supply their tokens and earn fees from traders.

Even the sporadic liquidity issues on DEXes, brought about by a sometimes fragmented marketplace, were addressed by the emergence of DEX aggregators – platforms that would essentially pool together fragmented liquidity onto a single platform.

For the most part, however, these DEX aggregators are limited to connecting liquidity pools on Ethereum. This obviously limits the level of multi-chain accessibility actually possible while trading on a DEX. Moreover, as things stand, trading volume on DEXes still pales in comparison to most centralized exchanges.

And while Ethereum might be the most prominent network in the industry, it isn’t for everybody. It is no secret that network congestion and the lack of scalability have caused high transaction fees on Ethereum.

Traders have looked to Layer 2 solutions and sidechains such as Binance Smart Chain, HECO, and Polygon as alternatives, but the transaction barriers between them still limit their choices considerably.

In some instances, the convoluted nature of actually performing a trade coupled with these liquidity issues has driven DeFi traders right back to centralized exchanges.

Clearly, interoperability between blockchains is the need of the hour. Cross-chain liquidity aggregators address these issues prevailing on decentralized exchanges by aggregating liquidity sources from various DEXs across chains and their own cross-chain pools.

O3 Swap is one such cross-chain DEX aggregator that works on expanding available token markets and increasing liquidity and trading volumes, easing cross-chain transactions for users all around.

O3 Swap describes itself as the first cross-chain aggregation protocol that enables free trading of native assets between heterogeneous chains by deploying ‘aggregator + asset cross-chain pool’ on different public chains and Layer 2 granting users access to cross-chain transactions with one click.

The project sees the future of DeFi as multichain co-existence. For the moment, it supports Ethereum, BSC, HECO, Polygon, and NEO cross-chain transactions and four cross-chain pools: USD Pool (ERC20-BEP20-HRC20), ETH pool (ERC20-BEP20-HRC20), BTC Pool (ERC20-BEP20-HRC20), and USDC Pool (ERC20-BEP20-Polygon).

With the use of special algorithms, cross-chain DEX aggregators identify the most optimal routes to fulfill trade orders across blockchain ecosystems. This important functionality will not only ease the burden of existing DeFi users but also remove some of the barriers to entry for newer market participants.

Learn more about O3 Swap

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Continue reading

Price analysis 7/30: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC

Traders expect altcoins to move higher now that Bitcoin price finally pierced the $41,000 resistance.

Bitcoin (BTC) and most major altcoins seem to be faltering near their respective overhead resistance levels. This suggests that some investors are continuing to sell at higher levels.

However, 21st Paradigm co-founder Dylan LeClair said that on-chain data shows “big transfer volumes from over-the-counter (OTC) desks over the last week.” Cointelegraph also recently highlighted a historic 57,000 BTC outflow from exchanges on July 28.

Ecoinometrics also cited on-chain data to show that “whales” and “small fish” accumulated Bitcoin when the price recovered from $29,400 to over $40,800 this week.

Daily cryptocurrency market performance. Source: Coin360

Institutional investors are also not to be left behind in their plans to accumulate more Bitcoin. MicroStrategy, which holds about 105,085 Bitcoin, said in its second-quarter report that the company intends “to deploy additional capital into our digital asset strategy.”

Wealthfront, a popular US-based robo-investment firm $25 billion in assets under management, announced that it would allow its clients to allocate up to 10% of their portfolio into Grayscale’s Bitcoin Trust and the Grayscale Ethereum Trust.

With demand increasing from small investors and high-net-worth individuals, will cryptocurrencies stage a sharper recovery? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin formed a Doji candlestick pattern on July 29, indicating indecision among the bulls and the bears near the $40,000 mark. That uncertainty briefly resolved to the downside and if the price does not hold its recent surge above $40,000 the price could drop to $36,670.

BTC/USDT daily chart. Source: TradingView

The moving averages have completed a bullish crossover and the relative strength index (RSI) is in the positive zone, indicating that bulls have the upper hand. If the price rebounds off $36,670, it will suggest that bulls have flipped this level into support.

The buyers will then again try to push the price above the overhead resistance zone at $41,330 to $42,451.67. This may not be easy because bears will try to defend this zone aggressively.

If the price turns down from the zone, the BTC/USDT pair could remain range-bound between $36,670 and $42,451.67 for a few more days. A breakout and close above $42,451.67 will suggest the start of a new uptrend.

The bears will be back in the driver’s seat if they can sink the price back below the moving averages.

ETH/USDT

Ether (ETH) reached the downtrend line today but the bears are defending the resistance aggressively. The price could now drop to $2,200 where buyers may step in and arrest the correction.

ETH/USDT daily chart. Source: TradingView

The moving averages have completed a bullish crossover and the RSI is in the positive territory, suggesting that bulls have the upper hand. If the price rebounds off the 20-day exponential moving average, the bulls will again try to thrust the price above the downtrend line.

If they succeed, the ETH/USDT pair could rise to $2,600 and then to $3,000. This positive view will invalidate if the price turns down from the current level and breaks below the moving averages. Such a move could sink the price to $2,000 and next to $1,728.74.

BNB/USDT

The bulls pushed Binance Coin (BNB) above the 50-day simple moving average ($310) on July 29 but they could not challenge the overhead resistance at $340. This suggests that buying dries up at higher levels.

BNB/USDT daily chart. Source: TradingView

The bears will now try to take advantage of the lack of demand to pull the price below the 20-day EMA ($305). A break of this support could result in a drop to the trendline and next to the July 20 low at $254.52.

On the contrary, if the price rebounds off the 20-day EMA, it will suggest buying on dips. The bulls will then make one more attempt to clear the overhead resistance at $340. If they pull it off, the BNB/USDT pair could rise to $379 and next to $400.

ADA/USDT

The failure of the bulls to drive Cardano’s (ADA) price above the 50-day SMA ($1.32) indicates that bears are aggressively defending the resistance.

ADA/USDT daily chart. Source: TradingView

If the price breaks below the 20-day EMA ($1.25), short-term traders may close their positions and that could drag the price down to $1.10 and later to $1. A break below $1 could result in long liquidation.

On the other hand, if the price rebounds off the 20-day EMA, the bulls will again try to push the price above the downtrend line. If that happens, the DOT/USDT pair could rise to $1.50 where bears may again mount a stiff resistance.

XRP/USDT

The bulls have failed to push XRP above the $0.75 level for the past two days, which suggests that bears are defending this level aggressively.

XRP/USDT daily chart. Source: TradingView

The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, indicating that bulls have the upper hand. If bulls do not allow the price to break below the 20-day EMA ($0.64), the XRP/USDT pair may rise above $0.75. That will complete a double bottom pattern, clearing the path for a possible rally to $1.07.

This positive view will invalidate if the price turns down and plummets below the moving averages. The bears will then try to pull the price to $0.59 and then to $0.50. Such a move will indicate that the range-bound action may continue for a few more days.

DOGE/USDT

The bears have been defending the $0.21 resistance for the past few days but a minor positive is that bulls have not given up much ground. This suggests that buyers are not closing their positions as they anticipate Dogecoin (DOGE) to move up.

DOGE/USDT daily chart. Source: TradingView

The flat 20-day EMA ($0.20) and the RSI above 45 suggest a balance between supply and demand. This balance will tilt in favor of the bulls if they can push and sustain the price above the 50-day SMA ($0.23). That may clear the path for a rally to $0.28 and then $0.33.

Conversely, if the price turns down from the current level and breaks below $0.18, the DOGE/USDT pair may drop to $0.15. This is an important level for the bulls to defend because if it gives way, the pair may witness panic selling and drop to $0.10.

DOT/USDT

The bulls pushed Polkadot (DOT) above the 20-day EMA ($14.15) on July 27 but they have not been able to clear the hurdle at the 50-day SMA ($16.05). This suggests that demand dries up at higher levels.

DOT/USDT daily chart. Source: TradingView

The price has turned down from the 50-day SMA today and the bears will now try to sink the DOT/USDT pair below the 20-day EMA. If they manage to do that, the pair could drop to $13. A break below this support could sink the pair to $10.37.

Contrary to this assumption, if the price rebounds off the 20-day EMA, the bulls will again attempt to push the price above the overhead resistance at $16.93. If that happens, it will suggest a change in the short-term trend. The pair could then start its journey to $20 and later to $26.50.

UNI/USDT

The bulls are attempting to push Uniswap (UNI) above the downtrend line but the long wick on the day’s candlestick suggests that bears have other plans.

UNI/USDT daily chart. Source: TradingView

If the price turns down from the current level but stays above the 20-day EMA ($18.50), it will indicate that bulls are buying on dips. That will improve the likelihood of a break above the downtrend line, invalidating the descending triangle pattern.

The UNI/USDT pair could then rise to $24 and if this level is crossed, the up-move may reach $30. Conversely, if bears pull the price below the moving averages, the pair may decline to $17.24 and then to the critical support at $13.

Related: Who takes gold in the crypto and blockchain Olympics?

BCH/USDT

Bitcoin Cash (BCH) is facing stiff resistance at $546.83. This suggests that bears are attempting to defend the resistance of the range and extend the consolidation for a few more days.

BCH/USDT daily chart. Source: TradingView

If bears pull the price below the moving averages, the BCH/USDT pair could witness further selling and drop to $441.17. A break below this level will open the doors for a further slide to the critical support at $383.53.

On the other hand, if bulls do not allow the price to drop below the moving averages, it will enhance the prospects of a break above $546.83. If that happens, the double bottom pattern will complete and the BCH/USDT pair could start its journey toward the target objective at $710.13.

LTC/USDT

Although bulls pushed Litecoin (LTC) above the 50-day SMA ($137) on July 28, they could not clear the hurdle at the overhead resistance at $146.54. This indicates that bears have not yet given up.

LTC/USDT daily chart. Source: TradingView

If sellers pull the price below the 20-day EMA ($130), the LTC/USDT pair could start its downward journey to the critical support at $103.83. Such a move will indicate that the pair may remain range-bound for a few more days.

Alternatively, if the price rebounds off the 20-day EMA, the bulls will make one more attempt to push the price above $146.54. If they succeed, the pair will complete a double bottom pattern, which has a target objective at $189.25.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Continue reading