With Bitcoin trading right below the resistance at $20k, it could be worth looking at Web 3.0 tokens to check if they are on the verge of a breakout too!
Bitcoin recovered from the lows of $18,500 last week after the US indices rallied by over 5%. It is now trading right under a resistance level, and if a breakout is seen, expect a significant short-term rally in altcoins too! In this week's technical analysis, we will have a look at the web3 tokens to see which ones have performed strongly in the past week.
LINK/USDT
In last week’s analysis, we marked a strong supply zone that is still restricting LINK from rallying past $8.2.
LINK also tried breaking out earlier this week, however, the supply zone proved to be too strong. If a breakout is seen this week, expect the token to rally toward the next supply zone at $9.5.
However, if the lower support at $7 is broken, expect the price to test the crucial demand zone at $6.2.
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HIVE/USDT
In last week's analysis, it was clearly seen that the bears were in clear control — however, this week the bulls seem to be returning. It is too early to say whether a strong reversal will be seen.
This recovery must continue this week for any further potential upside as the price has not recovered much from the lows, and another test of the support could lead to a breakdown toward the 52-W low.
Traders should steer clear of HIVE if a close below $0.48 is seen in the 4-hour time frame.
DOT/USDT
DOT has been trading inside a range for the past couple of weeks. Therefore, any breakout on either side of the zone will result in a sharp move.
DOT must break the upper zone as it is currently trading very close to the 52W low, and the next sell-off could take out the current low. Therefore, it is crucial for the coin to cross the resistance at $6.80 this week.
If the current demand zone at $6 is broken, expect another low to be hit in the coming days!
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BAT/USDT
In last week’s analysis, we had anticipated BAT to break the low at $0.29 - a move that was seen soon after our analysis. At the moment, the token is trying to flip the resistance at $0.31, which could lead to a rally to the next supply zone at $0.36.
It is very important to be cautious as BAT has still not crossed the resistance and can still break the current low at $0.28. If the current low is broken, expect a sharp drop.
FLUX/USDT
FLUX has been one of the worst performers this week. Investors should avoid any long positions at the moment. Any bullish sentiment can only be seen once FLUX is able to break the resistance at $0.903, which at the moment does not seem likely.
If the last-standing support zone at $0.8 is broken, expect the price to plunge to the support at $0.640. If the resistance is taken out, a short-term rally to $1 could also be seen.
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Summary
A quick recap of all the coins:
- LINK has to break the resistance.
- HIVE has recovered from the lows.
- DOT is trading sideways.
- BAT is approaching strong resistance.
- FLUX is trading close to crucial support.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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