Bitcoin’s strong monthly close could spark a rally in XRP, TAO, RUNE and SEI
2024.09.29 16:17
Bitcoin (BTC) has failed to run up following the breakout above $65,000, but a positive sign is that the bulls have not given up much ground. This suggests that the buyers are holding on to their positions as they expect the up move to extend further.
The United States-based spot Bitcoin exchange-traded funds witnessed inflows of $1.1 billion last week, the largest weekly flows since July 15-19. This shows that the sentiment has turned positive. The rally pushed the Crypto Fear & Greed Index into the greed territory at 63 on Sept. 29.
Crypto market data daily view. Source: Coin360
Another sign of retail traders entering the crypto markets is the increase in the download of Coinbase’s official app on the Apple AppStore. On Sept. 28, the app was the 385th most downloaded app, which is way above the 500th place and a dynamic which corresponds to bear markets.
Could buyers maintain the momentum, pushing Bitcoin and select altcoins higher? Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin has been maintaining above the breakout level of $65,000, indicating that the bulls are not hurrying to close their positions.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average ($62,650) has been sloping up, and the relative strength index (RSI) is in the positive territory, indicating that bulls are in charge. If the price turns up from the current level, the possibility of a rally to $70,000 increases. Sellers are expected to fiercely defend the zone between $70,000 and $73,777.
On the downside, the bears will have to yank the price below the 20-day EMA to suggest that the bullish momentum is weakening. The BTC/USDT pair could then descend to the 50-day simple moving average ($60,206).
BTC/USDT 4-hour chart. Source: TradingView
Both moving averages are sloping up on the 4-hour chart, and the RSI is in the positive zone, signaling that the path of least resistance is to the upside. If the price rises above $66,500, the pair could soar to $70,000.
Conversely, a break below the 20-EMA will suggest that the traders are booking profits. The next support on the downside is at the 50-SMA. A break below this support could yank the price down to the breakout level of $61,200.
XRP price analysis
XRP (XRP) has formed an ascending triangle pattern, which will complete on a close above $0.64.
XRP/USDT daily chart. Source: TradingView
If that happens, the XRP/USDT pair could start a rally toward $0.74. This level has proved to be a significant hurdle for several months; hence, the bears will try to defend it again. However, if the bulls prevail, the pair could surge to the pattern target of $0.90.
On the contrary, if the price turns down sharply from the current level and breaks below $0.64, it will suggest that the breakout may have been a bull trap. The pair may then decline to the 20-day EMA ($0.58).
XRP/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls have pierced the $0.64 resistance, indicating solid buying at higher levels. If the price maintains above $0.64, the pair may start a move toward $0.74.
Meanwhile, the bears are likely to have other plans. They will try to pull the price back below $0.64 and trap the aggressive bulls. The pair could then drop to the 20-EMA. Buyers will have to defend this level if they want to keep the bullish momentum intact.
Bittensor price analysis
Bittensor (TAO) rallied and closed above the $530 resistance on Sept. 23, but the bulls could not extend the recovery beyond $600.
TAO/USDT daily chart. Source: TradingView
A positive sign in favor of the bulls is that they have not allowed the price to close below the solid support at $530. If the price continues higher and breaks above $600, it will signal the resumption of the uptrend. The TAO/USDT pair could march to $640 and then to $720.
Alternatively, if the price breaks below $530, the next support is at $489. Buyers are expected to aggressively defend this zone. The bears will be back in the game if they sink the pair below the 20-day EMA.
TAO/USDT 4-hour chart. Source: TradingView
The bulls are fiercely defending the $489 to $535 zone, indicating buying on dips. If the price sustains above $563, the pair could retest the $600 level. This is an important resistance for the bears to guard because a break above it may start the next leg of the uptrend.
Contrarily, if the price turns down and breaks below $489, it will suggest the start of a deeper correction. The pair may slump to $450 and after that to $400. The deeper the fall, the greater the time needed for the uptrend to resume.
Related: XRP leads crypto weekend gains fueled by surging open interest
THORChain price analysis
THORChain (RUNE) rallied and closed above the overhead resistance of $5 on Sept. 26, indicating the start of a new up move.
RUNE/USDT daily chart. Source: TradingView
The upsloping moving averages and the RSI near the overbought zone suggest that buyers have the upper hand. A minor pullback to the breakout level of $5 cannot be ruled out. If the price rebounds off $5 with strength, it will improve the prospects of a rally above $6. The RUNE/USDT pair may then climb to $7.
If bears want to prevent the upside, they will have to drag the price below the 20-day EMA ($4.66). Such a move will suggest that the breakout may have been a bull trap. The pair could then slide to the 50-day SMA ($4.11).
RUNE/USDT 4-hour chart. Source: TradingView
The pair has pulled back to the 20-EMA on the 4-hour chart. If this support cracks, the correction could reach the breakout level of $5. Buyers are expected to vigorously defend the $5 support.
On the other hand, if the price turns down and breaks below $5, it will suggest that the bulls are booking profits in a hurry. That could start a deep correction toward the next crucial support at $4.40.
Sei price analysis
Sei (SEI) rose above the $0.43 overhead resistance on Sept. 24, indicating that the bulls are attempting a comeback.
SEI/USDT daily chart. Source: TradingView
The 20-day EMA ($0.38) has started to turn up, and the RSI is in the overbought zone, indicating advantage to buyers. If the rebound off $0.43 sustains, it will signal that the bulls have flipped the level into support. That will increase the possibility of the continuation of the up move. The SEI/USDT pair could surge to $0.60 and subsequently to $0.70.
Conversely, if the $0.43 support cracks, the pair may slump to the 20-day EMA. The bears will have to sink and sustain the price below the 20-day EMA to regain control.
SEI/USDT 4-hour chart. Source: TradingView
The pair has rebounded off the $0.43 support, indicating that the sentiment has turned positive, and traders are buying on dips. If the price maintains above $0.46, the bulls will attempt to retest the overhead resistance at $0.50. A break and close above this level will suggest the resumption of the up move.
This optimistic view will be invalidated in the near term if the price turns down and breaks below the 50-SMA. The pair could then decline to $0.36, where the buyers are expected to step in.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
