MATIC, SUI, RENDER and TAO could soar if Bitcoin holds $64K
2024.08.25 14:24
Bitcoin (BTC) is up more than 9% this week, indicating that the bulls are trying to push the price toward the resistance of the $55,724 to $73,777 range. According to data from SoSo Value, the United States-based spot Bitcoin exchange-traded funds (ETFs) witnessed strong inflows of $252 million on Aug. 23, indicating solid buying by investors.
The latest surge in Bitcoin happened after US Federal Reserve Chair Jerome Powell said during his annual Jackson Hole symposium speech that interest rates were due to fall.
“Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin,” CryptoQuant’s Head of Research Julio Moreno said in an Aug. 24 post on X.
Crypto market data daily view. Source: Coin360
If Bitcoin does not give back a large part of its recent gains, the cryptocurrency sentiment is likely to improve further. That could boost buying in select altcoins, propelling them above their respective overhead resistance levels.
After Bitcoin’s sharp up move, is it time for select altcoins to join the party? Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin pole vaulted above the 50-day simple moving average ($61,759) on Aug. 23, indicating that the bearish pressure was reducing.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average ($61,110) has started to turn up, and the relative strength index (RSI) has jumped into the positive zone, signaling that the bulls are on a comeback. Minor resistance is at $65,660, but if bulls overcome this barrier, the BTC/USDT pair may climb to $70,000.
The bears are likely to have other plans. They will try to pull the price back below the moving averages and trap the aggressive bulls. The pair may collapse to $57,787 and then to $55,724.
BTC/USDT 4-hour chart. Source: TradingView
The pair’s up move is facing selling at $65,000 but the bulls will try to arrest the correction at the 20-EMA. If the price bounces off the 20-EMA and breaks above $65,000, it will improve the prospects of a rally above $65,660.
On the other hand, a break below the 20-EMA will signal hesitation among the bulls to buy the dips. That could pull the pair to the 50-day SMA. If this support cracks, it will suggest that the bulls have surrendered their advantage.
Polygon price analysis
Polygon (MATIC) soared back above the breakdown level of $0.49 on Aug. 21, indicating that the markets rejected the lower levels.
MATIC/USDT daily chart. Source: TradingView
The moving averages are on the verge of a bullish crossover, and the RSI is in the positive zone, indicating that the bulls have the edge. If the price dips from the current level, support is expected at the 20-day EMA ($0.47). If that happens, the bulls will try to drive the MATIC/USDT pair to $0.75.
Instead, if the price turns down and breaks below the moving averages, it will suggest that the bears remain active at higher levels. The pair may then slump to $0.39.
MATIC/USDT 4-hour chart. Source: TradingView
The price turned down sharply from $0.58 but is finding support at the 20-EMA. A weak bounce off the current level will increase the possibility of a drop to $0.51 and, after that, to the 50-SMA. If this support cracks, the advantage will tilt in favor of the bears.
On the contrary, a strong rebound off the 20-EMA could push the pair to $0.58. If this resistance is scaled, it will suggest that the bulls remain in control. The pair may then rise to $0.60 and later to $0.65.
Sui price analysis
Sui (SUI) bounced off the 20-day EMA ($0.87) on Aug. 23, indicating aggressive buying at lower levels.
SUI/USDT daily chart. Source: TradingView
The bears are trying to stall the recovery just below the $1.11 overhead resistance. If the price turns up from the current level or once again rebounds off the 20-day EMA, it will signal a positive sentiment. That may encourage the bulls to propel the price to $1.20. If this level is crossed, the next stop maybe $1.44.
If bears want to prevent the upside, they will have to pull and maintain the price below the moving averages. That could sink the pair to $0.71.
SUI/USDT 4-hour chart. Source: TradingView
The rising 20-EMA and the RSI in the positive territory indicate advantage to buyers. The pair has bounced off the 20-EMA, and the bulls will attempt to retest the overhead resistance at $1.12.
Contrarily, if the price turns down and breaks below the 20-EMA, it will suggest that the higher levels are attracting sellers. The pair may then decline to the 50-SMA and subsequently to $0.80.
Related: Will Telegram-linked Toncoin bounce back after Pavel Durov’s arrest?
Render price analysis
Render (RENDER) rallied sharply in the past four days and broke above the moving averages, signaling that the bears are losing their grip.
RENDER/USDT daily chart. Source: TradingView
The bears are unlikely to give up easily and will try to pull the price back below the moving averages. However, if the price rebounds off the 20-day EMA ($5.18), it will indicate solid demand at lower levels. The bulls will then try to resume the recovery to $7.26 and subsequently to $8.
This optimistic view will be invalidated in the near term if the price slides below the 20-day EMA. That could open the doors for a fall to $4.38.
RENDER/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is in an up move, but the RSI is in the deeply overbought territory. That increases the risk of a short-term pullback, which is likely to find support at the 20-EMA.
If the price rebounds off the 20-EMA, it will suggest that the bulls are buying the dips. That could push the price to $7.26. Alternatively, if the price turns down and breaks below the 20-EMA, it will suggest that the bulls may be booking profits.
Bittensor price analysis
Bittensor (TAO) turned down from the overhead resistance of $361 on Aug. 23, but the pullback is finding support near the moving averages.
TAO/USDT daily chart. Source: TradingView
The bulls will try to overcome the obstacle at $361. If they manage to do that, the TAO/USDT pair will complete a double bottom pattern. That may start a new up move to $440 and then to $500.
This positive view will be invalidated in the near term if the price turns down and breaks below the moving averages. The pair may slump to $250 and eventually to the critical support at $200.
TAO/USDT 4-hour chart. Source: TradingView
Sellers pulled the price below the 20-EMA, but that proved to be a bear trap. The price reversed direction sharply, and the bulls are trying to clear the overhead hurdle at $361. If they pull it off, the pair may start a new up move.
On the contrary, if the price turns down once again from $361, it will signal that the bears are fiercely defending the level. The pair may drop to the 50-SMA, which is a critical level to watch out for. If this level breaks down, the pair may tumble to the $243 to $255 zone.
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.
