The S&P 500 Index had a modest gain of 0.45% this week, marking its second consecutive positive week. However, it was gold that stole the show with a massive increase of over 5%. On October 13th, gold experienced its best one-day performance since December 1st of last year, surging 3.11%. Bitcoin, on the other hand, was not as fortunate, as it is set to end the week down over 3%.
The poor performance of Bitcoin, combined with regulatory uncertainties, has led many crypto investors to stay away from altcoins. As a result, Bitcoin’s market dominance has remained near the 50% mark for the past few days.
Market observers are now closely watching Bitcoin, as its price holds above $25,000. If the bulls can sustain this level, it could indicate a bullish trend and potentially trigger a buying spree in select altcoins, signaling the start of a bull market.
Several cryptocurrencies are showing signs of forming a base, and if they break out to the upside, a new upward movement may begin. Let’s take a look at the charts of the top 5 cryptocurrencies that could outperform in the near term.
Bitcoin has been trading within the moving averages, indicating indecision between buyers and sellers regarding its next move. If the price breaks above the 20-day exponential moving average ($27,110), the BTC/USDT pair could rise to $28,143. However, a strong defense from bears is expected at this level. On the downside, if the price falls below the 50-day simple moving average ($26,671), it could signal the bears’ dominance and lead to a drop to $25,990 and further to the pivotal support at $24,800.
Solana (SOL) has been engaged in a tough battle between bulls and bears near the 20-day exponential moving average ($21.77). Bulls are attempting to flip this level into support, and if successful, the SOL/USDT pair could rise to the neckline of an inverse head and shoulders pattern. A break above this resistance could complete the bullish setup and lead to a surge towards the target objective at $32.81. However, a downturn below the 50-day simple moving average ($20.50) could negate this positive view and result in a drop towards $15.33.
Lido DAO (LDO) has been trading near the moving averages, suggesting that bears may be losing their grip. The immediate resistance on the upside is at $1.73, and if this level is breached, the LDO/USDT pair could climb higher. On the other hand, a drop below the moving averages would indicate the bears’ control and may lead to a retest of the vital support at $1.38.
Internet Computer (ICP) has been in a tight consolidation range between $2.86 and $3.35. A positive divergence in the RSI suggests that selling pressure is reducing. If the price breaks and closes above $3.35, it could signal a potential trend change. On the upside, the first target would be $4, followed by $4.50. However, a drop below $2.86 would indicate a resumption of the downtrend.
VeChain (VET) has been trading within a descending triangle pattern. Although this is typically a negative pattern, the price has been holding onto the downtrend line, which is a positive sign. Buyers will try to push the price above the downtrend line, which would invalidate the negative setup and potentially start a new upward movement. On the downside, a drop from the current level would indicate continued bearish defense of the downtrend line and may lead to a test of the critical support at $0.014.
It’s important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research before making any investment decisions.