Top Altcoins to Monitor This Week—TRX, AVAX, XLM, EOS & LTC
The cryptocurrency market stands on the brink of a significant surge, with many assets poised to gain as they hover around key resistance levels. A slight fluctuation in Bitcoin’s price is bolstering altcoins, with several of them experiencing a notable influx of liquidity. While Bitcoin, Ethereum, and XRP remain the favorites among investors, there are several other altcoins exhibiting increased trading activity that could potentially lead to a major breakout if Bitcoin embarks on a robust upward trend.
Avalanche (AVAX)
In spite of the prevailing market fluctuations, Avalanche has been consistently trading above the crucial resistance-turned-support level of $22.67. Currently, AVAX is in a critical phase, and a forthcoming breakout might enable it to surpass this barrier and aim for $50. The chart indicates that AVAX is approaching the peak of a rising wedge, which may lead to a brief pullback. The price is caught between the 200-day and 50-day moving averages, with the Chaikin Money Flow (CMF) reflecting a downward trend. Thus, a rise above these moving averages could trigger a significant Golden Cross, propelling the price towards the $50 mark.
Tron (TRX)
Distinct from many other cryptocurrencies, Tron has exhibited a robust upward trajectory since the beginning of the year. Despite the bears’ attempts to halt its progress, the bulls have quickly regained lost ground. Presently, the TRX price is stabilizing its gains, and a breakout could lead to a recovery of local highs near $0.5. The chart illustrates that TRX is trading firmly within a rising parallel channel, working to breach the upper limits. Although bullish momentum appears to be waning, maintaining its position within the channel could still favor bullish outcomes. Additionally, the Relative Strength Index (RSI) indicates a bullish divergence while the Moving Average Convergence Divergence (MACD) remains neutral. This suggests that TRX may continue to consolidate upwards within the channel, ultimately reaching the psychological threshold of $0.5.
Stellar (XLM)
Following a significant surge of 120% in July, Stellar has been on a downward trend. The price has created a series of lower highs and lows, which has gradually diminished the selling pressure. Once this process concludes, a trend reversal followed by a breakout could initiate a strong bullish wave. Currently, XLM is ensnared within a descending parallel channel, although it remains within a larger bull flag formation. The rally is sustained within the Ichimoku cloud, with indicators suggesting an impending bullish crossover. As the RSI declines, a correction may persist before a reversal and breakout towards new yearly highs.
EOS (EOS)
Since facing rejection in May, EOS has struggled to regain its resistance level, with bears maintaining a strong hold over the price action. Nevertheless, the token still trades within a bullish pattern, and after overcoming the selling pressure, it appears poised for a significant rebound. Currently, the price is within a falling wedge formation, and following the resistance rejection, it may drift towards support. However, the CMF has risen above zero and is attempting to stabilize, indicating sufficient liquidity influx. Consequently, EOS is expected to dip below $0.45, relieving selling pressure, before rebounding and breaking out above the wedge to reach $0.55.
Litecoin (LTC)
While Litecoin may not rank among the tokens with the highest trading volumes, it is nearing a pivotal moment in its price action. The cryptocurrency is currently moving within a rising parallel channel, hovering around average price bands. Nevertheless, current chart patterns and technical indicators suggest that a pullback of approximately 10% may be on the horizon. The chart shows that LTC is trading within a rising channel, while the MACD indicates a reduction in buying pressure. Furthermore, a potential bearish crossover could see prices retreat to support levels just below $100. Conversely, the price remains positioned within the Ichimoku cloud, suggesting a prolonged consolidation phase. Observing the forthcoming price movements will be crucial to understanding the market’s next steps.
