Bitcoin has finally broken out of the stringent resistance at $22,500. Is this the beginning of a new bull run? Let's check how Web3 tokens are performing!
After a sharp rally last week, Bitcoin broke out of the resistance at $22,500. However, the buying volumes started declining shortly after. This led to the price being pushed down below the resistance. The bulls were quick to return and flipped the resistance once again on Saturday. The long-awaited breakout is finally here and could trigger some strong rallies in several coins.
In this week's analysis, we will look at the coins that are showing relative strength and could outperform Bitcoin in the coming days.
LINK/USDT
LINK has broken out of resistance at $7.52, and is now retesting the resistance. If this retest is successful, expect LINK to start approaching the swing high at $9.63, which is just the first target.
LINK has been consolidating sideways for over two months; therefore, his breakout could result in a crucial rally. This view, however, is invalidated if LINK is not able to sustain over $7.52 as a false breakout would be seen in that case. Traders can take long entries as long as the price is keeping its head above $7.52.
Want to learn more? Check out our guide on how to trade futures on Binance.
HIVE/USDT
HIVE surged by a whopping 50% on Monday, which could just be the beginning of the rally to be seen this week.
After a huge spurt in buying volumes, the token was trading 50% higher on Monday as it broke through the resistance at $0.56.
After analyzing the price action of HIVE from June where it rallied by over 50% in one day, it is looking like it will retest the breakout zone soon. This is why traders can expect a reversal near the support level at $0.71. They should keep an eye on the price as the rally may not be over yet!
Also read: death cross and golden cross.
DOT/USDT
DOT has rallied by over 40% after breaking out of the downtrend channel that is formed last week. Traders should hold off any fresh buys until DOT is able to clear the resistance at $8.80.
This is because DOT was rejected earlier in July at the same price level and tumbled by over 25% shortly after.
Once DOT is able to clear the resistance, traders can expect a target of $10.41 to be hit without any hurdles. If DOT is not able to stay above $8.80, avoid taking any positions as it could head for the support at $6.65.
Also read: leverage in crypto trading!
BAT/USDT
A huge move may be coming soon for BAT as it was on the verge of breaking the resistance on Monday. Once BAT breaks the resistance, a clear path to February’s low can be seen and should be hit soon.
Traders must be patient, as BAT has not yet broken the resistance, and there is still a chance of rejection. A long entry should be taken only once BAT is able to break $0.443. Failure to do so can result in the price heading towards the support zone at $0.35.
FLUX/USDT
The situation seems to be changing in the chart of FLUX after it has broken the long-standing resistance at $0.61. Before taking any fresh positions in FLUX, traders should wait for the price to pull back as it is extended currently.
FLUX has broken out after accumulating for over a month. This could result in a huge move. Traders should use stop-loss as FLUX has been the weakest performing coin for the past few weeks, therefore, this could be a false breakout. Traders can expect FLUX to test the supply zone at $0.92, if the breakout is sustained.
You may also check out our guide to scalping vs swing trading!
Summary
A quick recap of all the coins:
- LINK is retesting the resistance after breaking out.
- Until the 61.8% level is maintained by HIVE, traders need not worry.
- DOT has broken a strong resistance and could start approaching the next supply zone soon.
- BAT is trading near its supply zone, which, if broken, could lead to a sharp rally.
- FLUX has finally broken out and a strong rally could be seen if it is able to sustain above the resistance.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
