Bitcoin has finally broken out of the stringent resistance at $22,500. Is this the beginning of a new bull run? Let's check how Web3 tokens are performing!
In this week's analysis, we will look at the coins that are showing relative strength and could outperform Bitcoin in the coming days.
LINK has broken out of resistance at $7.52, and is now retesting the resistance. If this retest is successful, expect LINK to start approaching the swing high at $9.63, which is just the first target.
Want to learn more? Check out our guide on how to trade futures on Binance.
HIVE surged by a whopping 50% on Monday, which could just be the beginning of the rally to be seen this week.
After a huge spurt in buying volumes, the token was trading 50% higher on Monday as it broke through the resistance at $0.56.
After analyzing the price action of HIVE from June where it rallied by over 50% in one day, it is looking like it will retest the breakout zone soon. This is why traders can expect a reversal near the support level at $0.71. They should keep an eye on the price as the rally may not be over yet!
Also read: death cross and golden cross.
DOT has rallied by over 40% after breaking out of the downtrend channel that is formed last week. Traders should hold off any fresh buys until DOT is able to clear the resistance at $8.80.
This is because DOT was rejected earlier in July at the same price level and tumbled by over 25% shortly after.
Once DOT is able to clear the resistance, traders can expect a target of $10.41 to be hit without any hurdles. If DOT is not able to stay above $8.80, avoid taking any positions as it could head for the support at $6.65.
Also read: leverage in crypto trading!
A huge move may be coming soon for BAT as it was on the verge of breaking the resistance on Monday. Once BAT breaks the resistance, a clear path to February’s low can be seen and should be hit soon.
Traders must be patient, as BAT has not yet broken the resistance, and there is still a chance of rejection. A long entry should be taken only once BAT is able to break $0.443. Failure to do so can result in the price heading towards the support zone at $0.35.
The situation seems to be changing in the chart of FLUX after it has broken the long-standing resistance at $0.61. Before taking any fresh positions in FLUX, traders should wait for the price to pull back as it is extended currently.
FLUX has broken out after accumulating for over a month. This could result in a huge move. Traders should use stop-loss as FLUX has been the weakest performing coin for the past few weeks, therefore, this could be a false breakout. Traders can expect FLUX to test the supply zone at $0.92, if the breakout is sustained.
You may also check out our guide to scalping vs swing trading!
A quick recap of all the coins:
- LINK is retesting the resistance after breaking out.
- Until the 61.8% level is maintained by HIVE, traders need not worry.
- DOT has broken a strong resistance and could start approaching the next supply zone soon.
- BAT is trading near its supply zone, which, if broken, could lead to a sharp rally.
- FLUX has finally broken out and a strong rally could be seen if it is able to sustain above the resistance.