– BTC’s price has made lower lows for over five days.
– The global cryptocurrency market cap had fallen to the $1.58 trillion mark.
– Altcoins like Algorand, Tron, and Monero could be some tokens to watch out for this week.
The last week brought bearish waves for the broader crypto market, with bitcoin (BTC) sliding by almost 15% to visit the near $34,000 zone for the first time since late January. The BTC-induced losses pulled the global crypto market cap down by nearly 14%, bringing it to $1.58 trillion at the time of writing.
A significant correlation in bitcoin’s price with United States equity markets has resulted in BTC price continuing the downtrend. That said, a larger market downtrend for indices, stocks, and cryptocurrencies indicated that market participants were being cautious of their exposure to risky assets.
So, as another bear market takes off, let us look at some of the top coins to watch closely over the coming week.
On May 9, the king coin of the crypto market, BTC, slid to as low as $33,710 on some exchanges. BTC’s price last reached $33,000 at the end of January this year.
During the past couple months, bitcoin mainly had traded between $35,000 and $46,000. As BTC breaks the lower trendline with the price falling further downwards the same could indicate a new bearish trend taking over the market.
At the time of writing, a majority of indicators were leaning towards the bearish side with bitcoin’s price breaking below the three-month rising trend line. Notably, the top coin was unable to hold the $34,500 support. In the near future, if the price falls below $32,900, the same would mark a new low for BTC.
That said, if bears overpower at the $34,300 level, the same could lead to further price decline pulling BTC down to $32,900. As highlighted by analyst Ali Martinez, BTC can face trouble reclaiming $35,570 as support, and $38,550 remains the most significant resistance level for $BTC.
#Bitcoin | Look at how thin on-chain support becomes below $30,000… 🧐
— Ali Martinez (@ali_charts) May 8, 2022
Ethereum’s price has been largely correlated to BTC over the last few days as the top two coins’ price trajectory moves more or less in tandem. Data from IntoTheBlock presented that the ETH-BTC correlation remained high.
In terms of price, ETH traded at $2,563.39 at press time, noting 4.61% daily and 7.24% weekly gains. A fall below the $2510 mark which has acted as a strong support throughout this year, could result in further losses for the top altcoins.
Notably, the relative strength index (RSI) for ETH had been in a larger downtrend since April 6 as ETH prices made lower lows since then. At press time, RSI had entered the oversold zone, and recovery from the same in the near term could be a reversal signal. However, it looks like in the short-term, ETH could follow BTC.
As highlighted in a recent article, Algorand’s total value locked (TVL) increased by 19.4% to $187.36 million in the last week. Notably, increased demand for ALGO as a staking crypto provided the price uptick over the last week.
Early last week, Algorand was in the news as FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar. The coin’s price saw a decent price push as the announcement floated on media.
At press time, ALGO traded at $0.7292, noting a 4.69% loss on the daily chart, however, the coin was still up by 23.66% on the weekly window.
If bulls can hold ALGO price above the 20-day EMA at $0.69 then ALGO’s price could see some decent gains in the coming days. indicating that the selling pressure could be reducing.
Furthermore, the coin’s rise above $1.10 in the near term could see the token rally to $1.25 ensuring gains for ALGO holders.
AS highlighted in a recent FXEmpire article, Tron’s ecosystem-centric updates have ensured a bullish narrative for TRX even as the larger crypto market falls in heavy losses. Tron’s algorithmic stablecoin USDD went live last week and has since been listed on several platforms for decentralized finance (DeFi) protocols.
On Saturday, after Tron founder Justin Sun revealed that the team behind the project had purchased 504,600,250 TRX at an average price of 0.07727 per unit, the same led to TRX’s price rise.
Notably, TRX’s price has rallied in tandem with the ecosystem-centric announcements. TRX’s price jumped by almost 47% since May 1 amid heightened positive social sentiment for the ecosystem and its native token.
At the time of writing, TRX traded at $0.09067, noting 7.77% daily and 32.64% weekly gains. TRX’s RSI was in the overbought zone as buying pressure dominated TRX’s market.
With the larger market falling, privacy tokens seem to be back on track for some gains. Monero, at press time, traded at $216.56, noting 3.86% daily gains and 2.57% weekly gains despite the larger market bearish momentum.
XMR has held the psychological support at $200, which aided the coin’s rise over the last couple of days. While RSI for XMR presented that seller dominated buyers, RSI’s uptrend reinforced positive market momentum.
In the short term, if bulls can keep price above the $220 mark, which is also the 20-day EMA, then the same could ensure further upside for the coin. The next resistance for XMR was at $240; once bulls can push price above that, the next level to look out for would be $290.
In a bearish case, if the price breaks below $200, the next level to watch for XMR would be $190.