Analyst Rakesh Upadhyayhas done technical analysis and price evaluations for 4 altcoins to watch this week.
Cardano (ADA) price is currently consolidating between $2.97 and $2.47 dolar. The price dropped to the breakout level of $2.47 on August 26, but the sharp retracements on August 27 seem to have turned this level into support.
Consolidation near its all-time high is a positive sign as traders continue to buy on the dips. Both moving averages (MA) are rising and the relative strength index (RSI) is close to the overbought zone. Everything points to the way up.
If buyers hold the price above the psychological barrier of $3 and close there, the ADA/USDT pair could resume its uptrend. The next target on the upside is $3.50.
Conversely, if the price drops below the 3 dollar resistance zone, it will continue to move within the corridor for a while. A break below $2.47 and a daily close will indicate weakening of the bullish momentum.
Terra protocol’s LUNA token is in a strong uptrend. After several days of consolidation, the price recovered from the 20-day exponential continuous average (EMA) ($26.95) on August 27, proving that the market sentiment is positive.
The rising moving averages and the RSI in the overbought zone suggest that the bulls have the upper hand. The first target on the upside is at $43 and if this level is exceeded, the LUNA/USDT pair could rise to $50.
The long wick on the candlestick of the last two days reveals that the bears are aggressively defending the overall resistance. If the bears pull the price below $32, the pair could drop to the 20-day EMA.
The 20-EMA is an important level that the bulls need to defend. A strong bounce from here will indicate that the uptrend remains intact, but a break below the 20-day EMA will show that the bullish momentum has weakened.
VeChain (VET) price recovered sharply from its July 21 low of $0.05 and formed a pennant pattern. The pattern will be complete when the price breaks above and below these lines.
The 20-day EMA ($0.11) is flat and the RSI is near the midpoint. This shows that there is equality between supply and demand. A break above the pennant’s resistance line and a close in that area will signal the resumption of the upward move.
The first target on the upside is at $0.16. If this level is exceeded, the VET/USDT pair can rise to $0.19.
However, if the price drops below the support line of the pennant, the bullish view will be over. The pair could then decline to the 50-day simple moving average (SMA) ($0.09).
Tezos (XTZ) price broke the resistance line at $4.47 and completed the bowl formation. According to the chart, the model’s target is calculated at $6.85.
Usually, price retests the breakout level after breaking a key resistance. In this case, the XTZ/USDT pair could decline to $4.47. If the bulls turn this level to support, a new uptrend will start.
The upside 20-day EMA ($4.39) and the RSI in the overbought zone are giving profits to the buyers.
If the price drops from the current level and dips below the 20-day EMA, it will appear that supply exceeds demand. In this case, a few aggressive bulls could fall into the trap and a drop to the 50-day SMA ($3.37) level could occur.