The cryptocurrency market experienced a mild recovery last week. Despite Bitcoin (BTC) encountering initial setbacks at the start of the week, it eventually regained some lost ground, providing strength to the rest of the market. Several altcoins saw impressive and robust recoveries, contributing to the global cryptocurrency market recouping $70 billion, ending the week with a total market cap of $2.21 trillion. Here are the top picks for cryptocurrencies to watch this week, based on their impressive performances in the previous week (XLM, MOG, MANA).
Stellar (XLM) Reclaims $0.1 in 12% Gain
Stellar (XLM) was among the cryptocurrencies affected by the market downturn on July 7, experiencing a loss of 7.40%. However, the asset gradually recovered this loss in the following five days, witnessing mild gains by July 12. XLM’s bullish momentum gained significant traction on July 13, appreciating by 12.05% and reclaiming the $0.1 mark for the first time in a month.
XLM’s Volatility and Momentum Indicators
Data from Santiment confirms a spike in Stellar’s weekly volatility to a one-month peak of 0.066. The asset’s Moving Average Convergence Divergence (MACD) line has decisively crossed above the Signal line, confirming the bullish momentum. However, investors should closely watch the resistance at $0.1096, which aligns with the 38.2% Fibonacci retracement level. Breaking this resistance could pave the way for further gains, but failure to do so might result in consolidation or a slight pullback.
Mog Coin (MOG) Retests All-Time High
Mog Coin (MOG) faced intense bearish pressure at the start of last week, collapsing by 20.4% on July 7 due to selling pressure bolstered by the German government’s stance on cryptocurrencies. This marked MOG’s biggest intraday loss in nearly four months. However, the crypto asset recovered these losses over a three-day period of sustained gains from July 8 to 10, increasing by 28.8%. The asset then consolidated over the next three days with mild drops and upswings.
MOG’s Recovery and Future Targets
Overall, Mog Coin closed the week with a mild 3.5% increase. During this period, it sought to retest its all-time high of $0.000002129 but faced resistance at $0.0000019. MOG’s immediate target is to flip the upper Bollinger Band at $0.000001925 to support, a move it could leverage for another retest of the ATH region. Investors should monitor this level closely as flipping it to support could signify a renewed bullish phase, while failure might lead to further consolidation.
Decentraland (MANA) Struggles at 20-Day EMA
Decentraland (MANA) experienced an initial 6.10% drop on July 7 but managed to recoup this loss over the rest of the week. Notably, MANA saw six consecutive days of intraday gains from July 8 to 13, eventually breaching the 20-day Exponential Moving Average (EMA), a move that solidified a switch in momentum to bullish.
MANA’s RSI and Support Levels
However, MANA’s relative strength index (RSI) suggests reduced strength in the uptrend. Consequently, bears are looking to flip the 20-day EMA back to resistance. This level is crucial as a drop below it could lead to a return of bearish pressure. Should this occur, MANA’s immediate defense would rest at the Fibonacci 0.236 level at $0.3085. This region is pivotal in defending against any declines below the $0.30 psychological support, which is essential for maintaining the bullish momentum.
Analyzing the Market Trends and Key Indicators
The recent recovery in the cryptocurrency market highlights the importance of closely monitoring market trends and key indicators. Investors should keep an eye on volatility spikes, MACD crossovers, resistance levels, and RSI indicators to make informed decisions. Each of these indicators can provide valuable insights into the potential future movements of cryptocurrencies and help investors navigate the volatile market.
Volatility and Market Movements
Volatility is a critical factor in the cryptocurrency market, often leading to significant price swings. Monitoring volatility levels can help investors anticipate potential market movements and adjust their strategies accordingly. For example, a spike in volatility, like the one observed in Stellar (XLM), can signal an impending price movement, providing investors with opportunities to enter or exit positions.
MACD and Signal Line Crossovers
The MACD is a popular technical indicator used to identify potential buy or sell signals. A crossover between the MACD line and the Signal line, as seen in Stellar (XLM), typically indicates a shift in momentum. A bullish crossover, where the MACD line crosses above the Signal line, suggests increasing buying pressure, while a bearish crossover indicates selling pressure. Investors can use these crossovers to time their trades and enhance their market strategies.
Resistance Levels and Fibonacci Retracement
Resistance levels are crucial in determining potential price targets and identifying areas where an asset might face selling pressure. For instance, Stellar (XLM) faces resistance at $0.1096, which aligns with the 38.2% Fibonacci retracement level. Breaking through resistance levels can signal a continuation of the bullish trend, while failure to do so might result in consolidation or a pullback. Investors should pay close attention to these levels to manage their positions effectively.
RSI and Overbought/Oversold Conditions
The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. In the case of Decentraland (MANA), a high RSI suggests reduced strength in the uptrend, indicating that the asset might be overbought and susceptible to a pullback. Investors can use the RSI to identify potential reversal points and adjust their strategies accordingly.
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