Key Takeaways:
- The cryptocurrency market has started the current week in the green.
- Bitcoin and Ethereum prices continue to move laterally as they recover from last week's losses.
PATNA (CoinChapter.com) — The cryptocurrency market enjoyed a relief rally on Monday, with most crypto tokens registering gains as trading began in the third week of Oct.
Bitcoin (BTC) prices reached nearly $19,600 before corrections pared gains. However, the largest cryptocurrency (by marketcap) continued to trade above $19,500 at writing. Meanwhile, Ethereum (ETH) prices remained above $1,300.
ETH prices closed above $1,300 for the first time in a week on Oct 16.
1. Shiba Inu ( SHIB) Price Analysis
Meme token Shiba Inu’s prices registered a minor rally over the weekend, with the token gaining as much as 5% on Oct 15, swinging between intraday low ($0.00001002) and high ($0.00001053) levels.
However, SHIB prices gained about 1% over the weekend between Saturday’s open ($0.00001019) and Oct 16’s close ($0.00001029). Hence, bearish pressure remains strong for the meme coin.
Currently, SHIB prices face strong resistance from a confluence of a multi-week descending trendline and 20-day exponential moving average (20-day EMA, red wave) near $0.00001064. Moving above the key resistance level would help SHIB prices challenge resistance near $0.0000112 before retreating.
Conversely, if the resistance confluence rebuffs SHIB’s price uptrend, the token would likely fall to a key support level near $0.00001, which SHIB price action has tested four times in the past three months.
A break below the immediate support level might see SHIB prices drop to $0.000093 before recovering. Meanwhile, the relative strength index of SHIB remains neutral, with a value of 41.84 on the daily charts.
2. Cardano(ADA) Daily Price Chart
ADA prices dropped more than 15% between Oct 10’s high ($0.427) and Oct 15’s low ($0.361) before the token started a rally on Oct 16. The token has gained nearly 3.3% since Oct 16. Moreover, ADA’s relative strength index is still trying to re-enter the neutral region after being oversold for a week.
In detail, traders often consider oversold RSI levels as a buy signal for an asset. The RSI for ADA is technically neutral, clocking at 30.29 on the daily charts. Hence, the chances are ADA prices would continue to uptrend as bulls enter the market and rise to target resistance near $0.38.
A sustained uptrend might result in ADA prices targeting resistance from the crypto token’s 20-day EMA (red wave) near $0.404 before corrections pare gains.
Meanwhile, ADA’s recent uptrend saw the token’s prices break below a multi-month parallel channel as the Cardano token entered Oct. If ADA bulls fail to continue the token’s uptrend, the crypto token would likely fall to support near $0.36.
A marketwide sell-off might see ADA prices fall nearly 8% and reach $0.345 before recovering.
3. CVP Token Daily Price Chart
CVP price exploded on Oct 15, swinging 251% between intraday low ($0.3) and high ($1.06) levels before corrections pared some of the day’s gains. The token still ended the day up by 104.5%. However, the near-vertical price action caused CVP’s relative strength to venture into the overbought region.
Also Read: Bitcoin (BTC) Price Holds Strong: Here’s A Strengthening Case for Upside
An overbought RSI often forecasts a trend reversal for an upward-trending asset. CVP price followed the rule to the letter, with the token dropping nearly 35% on Monday as it reached $0.49 from an intraday high of $0.75 before recovering.
Currently, CVP’s RSI is neutral, with a value of 63.6 on the daily charts. If the downtrend continues, CVP prices would likely test support from their 200-day EMA (green wave) near $0.478. Moreover, a marketwide sell-off would likely result in CVP prices falling to $0.42 before recovering.
However, the uptrend also helped CVP’s 20-day EMA (red wave) move above its 50-day EMA (purple wave) to form a bullish chart pattern called the golden cross. Traders often consider the pattern a sign of positive market sentiment.
Hence, if CVP prices hold above the 200-day EMA support, bulls would likely help the token target resistance near $0.562. Moving above immediate resistance would help the CVP prices reach $0.65 before prices retreat.
4. Polygon (MATIC) Price Analysis
MATIC’s price action has largely been range bound since Aug. However, the token’s prices have registered a minor uptrend since Oct 14. Monday saw MATIC prices jump nearly 5.7% between intraday low ($0.79) and high ($0.84) levels.
If MATIC prices continue rising, the token would first challenge resistance near $0.86, which has rebuffed MATIC uptrends since Sept 14. Moving above immediate resistance might help the Polygon token target resistance from its 200-day EMA (green wave) near $0.91 before retreating.
Conversely, if MATIC fails to continue its uptrend, the token would likely fall below its 20-day (red wave), 50-day (purple wave), and 100-day (blue wave) EMA trendlines to test support near $0.77.
Moreover, a marketwide sell-off could force MATIC prices down to $0.73, a drop of nearly 12.5% from current levels, before recovering. Meanwhile, the relative strength index for MATIC remains neutral, with a value of 56.81 on the daily charts.
