Ethereum bounced off its level of support, but this bounce did not hint at a reversal in downtrend from the $481-highs of late-August. It is likely that this bounce will reverse itself in the coming days. Further down the crypto-ladder, Algorand broke out of its bearish trend and could be primed to surge upwards. Decred also showed signs of bullishness, but there is a chance that the price would get rejected at an imminent level of resistance.
Ethereum [ETH]
Source: ETH/USD on TradingView
ETH formed a bear flag, a bearish pattern with a projected drop to $260 for ETH in the coming weeks.
In the near-term, the price had bounced off its support at the $318-level and could test the resistance at $363 in the coming days. Yet, the charts suggested some bearishness as well.
However, the trading volume on the latest surge was trending south, as shown by the orange arrow. This suggested that the price hike was not backed by buyers’ interest in the market and could spell another drop for the crypto-asset.
Algorand [ALGO]
Source: ALGO/USD on TradingView
ALGO had been moving in a descending channel, while steadily falling past support levels. But near the $0.25-mark, a bullish divergence was formed. The market bulls were successful in driving the price to break out to the upside of the channel, suggesting a reversal in trend.
The said bullish divergence has been shown in orange, with the price forming lower lows and the momentum indicator (RSI) forming higher lows. The RSI also rose to 60, indicating recent bullish momentum.
The next level of resistance for ALGO lay at $0.39, and it is possible that ALGO will re-test its flipped level $0.31, before a leg up.
Decred [DCR]
Source: DCR/USD on TradingView
DCR was trading just beneath a level of resistance at $12.2, at press time. In fact, there were indications that DCR was likely to rise past the said resistance level
Further, the Awesome Oscillator noted a change in momentum in favor of the bulls, while the Bollinger Bands, which had squeezed around the price for a couple of days, expanded to denote heightened volatility. DCR also appeared to break out towards the upper band.
However, it could be too early to call, as there is still a chance that the price will be rejected at $12.21. A rise past its resistance could see DCR reach $13, before a possible drop.