It’s the news that worries many, if not most, cryptocurrency investors. Bankrupt virtual currency exchange Mt. Gox will begin Repay thousands of usersPer CNBC. In total, the amount of benchmark blockchain assets returned is approximately $9 billion. Of course, this has significant implications for all cryptos.
Certainly the news will be positive for the victims who have spent several years in legal limbo. When the exchange closed its doors in February 2014, the benchmark asset was only worth about $600. Apparently the price has skyrocketed since then. So the biggest fear is that once victims get their crypto, they will throw it away.
Honestly, I wouldn’t blame anyone for doing just that. That’s a long time to be out of control of your money.
On the other hand, those who have participated in the market might experience volatility. The question is, how long will the pain last? Given the greater interest in blockchain assets, it is possible that the red numbers will be short-lived. Below are the top cryptos to keep an eye on this week.
Bitcoin (BTC USD)
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After a hard week, this is what it looked like Bitcoin (BTC USD) fell below the critical $60,000 mark, the benchmark asset regained that milestone. In the last 24 hours since Monday evening, BTC gained about 0.3%. In the last seven days, the virtual currency has risen by more than 4%. However, there are some significant challenges ahead.
Currently, BTC’s 20-day exponential moving average (EMA) is providing upward resistance. Currently, the moving average is $63,624.48. Bulls attempted to overcome this price point, but with limited success. If they clarify this point, the next logical target would be the 50-day moving average. This metric comes to almost $66,444.
On the bright side, Bitcoin didn’t stay below 60,000 for too long. This is important because it means there is plenty of support; This means that the market’s strong hands are ready to buy on dips. Still, the severity of the Mount Gox fallout must be kept in mind. After all, the 200-day moving average is not too far away at $58,215.
Ethereum (ETH-USD)
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Compared to Bitcoin, ether (ETH-USD) experienced a more resilient week. What is most important from a short-term technical perspective is that ETH managed to hold the $3,000 mark. In the last 24 hours, ETH has barely risen, with price action up about 0.1%. Over the past seven days, the second-largest cryptocurrency by market capitalization gained 2.5%.
Even though Ethereum has been relatively robust, it still has a lot of work to do. For one, the 20-day EMA – which sits at around $3,467 – has created upside resistance. Therefore, although there was a strong sideways movement compared to previous weeks’ performance, there were no large positive net returns. Additionally, the 50-day moving average – which stands at $3,546 – will certainly provide more resistance.
What is crucially positive for ETH is that there is no immediate danger of it falling below the 3K mark. At the current price of around $3,434, the cryptocurrency is holding on to a long-term support line. Nevertheless, the next steps will be important. As a warning, Ethereum’s 200-day moving average is $3,079.
Tether (USDT-USD)
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As a stablecoin Connection (USDT-USD) doesn’t offer much value in terms of buy-and-hold tactics or strategies. Aside from the idea that it is possible to trade large amounts of USDT because of its volatility, most people probably use USDT as a measure of liquidity. By holding assets in the form of Tether units, traders can react immediately to crypto opportunities.
However, because USDT is so important for lubricating the blockchain machinery, it can also be used to measure general sentiment. In other words, the more people are willing to hold the tokens, the more likely the sentiment is bullish. And in this case, the value of Tether should exceed the one-to-one ratio to the dollar.
On the other hand, if people are worried about cryptos, you would expect them to stick with dollars. In this case, the greenback should rise relative to USDT. This is exactly what we are currently seeing: USDT falling to 0.9989 on Monday evening.
Admittedly, you shouldn’t panic because of this number. However, it is important to keep in mind that crypto sentiment may be subdued at the moment.
Avalanche (AVAX-USD)
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First, let’s talk about some of the popular altcoins avalanche (AVAX-USD). On paper, AVAX does not seem to be the most promising cryptocurrency. Yes, in the last seven days it is up almost 16%. However, it fell by more than 3% in the last 24 hours. Additionally, AVAX has struggled since hitting a multi-month high in late May.
At that time, AVAX’s price was around $42 at its peak. Currently, the cryptocurrency can be yours for just under $29. That’s a big drop in value, but should speculators take the deal? Of course, there is much to be concerned about. While AVAX managed to break above its 20-day EMA, AVAX remains well below its 50-day moving average, which stands at $32.63.
However, there could be a reversion to the mean. Previous setbacks of this kind have led to a recovery in sentiment. If there is another rally, technical support lies around $35-$36. I expect AVAX to hit there as part of a resurgent rally.
Of course this is not guaranteed. However, if you are interested in speculative cryptos, consider AVAX.
Polkadot (DOT-USD)
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If you want a similar narrative to Avalanche but want the added leverage of a lower unit price, consider this Speckle (DOT USD). This was one of the most popular cryptocurrencies during the sector’s 2021 rally. However, conditions have deteriorated greatly since the days when DOT traded above $40. Will history repeat itself? If this is the case, please note that DOT is currently trading for less than $7.
In the last 24 hours, Polkadot has barely gained anything and is up 0.35%. Over the last weekly period, DOT managed to return just over 11%. As with Avalanche, it is possible that a reversion to the mean will occur. If so, I see an immediate support line around the $7 level. If Polkadot manages to secure bullish sentiment there, I expect the next target to be $9.
However, I don’t want to dismiss the risks out of hand. Since the beginning of June, DOT has fallen from over $7 per unit to around $5.50. It is attempting to move higher, with Polkadot reaching a price of $6.35. Still, it’s always possible that the bears could lower the value.
It’s up to you, but the reversal concept could trigger a strong uptrend in DOT.
Chainlink (LINK-USD)
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One of the most fascinating ideas among alternative cryptos, chain link (LINK USD) thrilled investors when bulls pushed the price above $20 earlier this year. Unfortunately, the optimists were unable to keep the price in this zone. Sentiment subsequently deteriorated, but no decisive bear cycle occurred. Instead, LINK is holding support above the $14 level.
In the last 24 hours, Chainlink lost about half a percent. In the last week, the cryptocurrency rose by 5%. Currently, the market capitalization is almost $8.7 billion. Short-term challenges await us in the future. Firstly, the price is currently just below the 20-day EMA. This is quite frustrating as a heavily supported cryptocurrency should jump above this short-term running average. Second, LINK is below its 50-day moving average ($15.77) and 200-day moving average ($16.42).
However, on the positive side, LINK has held strong at the $14 level after a sharp decline in April. There were many opportunities for the bears to collapse Chainlink, but the attempts failed. For speculators, this could be a sign that the pessimists are exhausted and the bulls are taking control.
Dogecoin (DOGE-USD)
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For the ultimate speculator, Dogecoin (DOGE-USD) offers few parallels. If you think that Bitcoin, Ethereum and major cryptos are too boring, DOGE can help you solve this “problem” in your life. However, I remember the acronym FAFO – “fool around” and find out.
The moral of the story with Dogecoin is that if you don’t mess around, you’ll never find out. That could be a good thing too, you know?
So here is the situation with DOGE. The digital asset is currently trading for 12.3 cents. That’s below the 20-day EMA and 200-day DMA, both of which are around 12.8 cents. Additionally, the 50-day average is 14.5 cents. In other words, there are many upward resistance barriers that Dogecoin must overcome. Additionally, the 50-day moving average coincides with a horizontal trendline that could act as “double” resistance.
As far as optimism goes, never underestimate Dogecoin bulls. The current weakness could lead to a reversion to the mean. If so, watch out for DOGE attempting to reach the 15 cent mark in the coming weeks.
At the time of publication: Josh Enomoto held a LONG position in BTC, ETH and USDT. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.
