BTC, ALGO, XMR, XTZ, THETA

The S&P 500 and the Nasdaq have dropped for five straight weeks.indicating that traders continue to reduce their exposure to risky assets. The close correlation of bitcoin (BTC) with the US stock markets has kept its price under pressure.

Bitcoin price has extended its decline over the weekend and is headed for its sixth straight weekly lossthe first to occur since 2014. The weakness of the bitcoin price has dragged down all cryptocurrency markets, whose market cap has fallen below $1.6 trillion.

Cryptocurrency market daily view. Source: Coin360

When sentiment is bearish, traders sell every negative news. The unpegging of the stablecoin TerraUSD (UST) with the US dollar also appears to be adding to the selling pressure in the cryptocurrency market..

After six consecutive weekly closings of the bitcoin price in the red, has the time for recovery come? Let’s study the charts of the top 5 cryptocurrencies that are showing signs of stabilization in the short term.

BTC/USDT

On May 5, the price of bitcoin broke away from the 20-day exponential moving average ($38.268) and fell below the support line of the ascending channel.. This move also invalidated the positive divergence in the Relative Strength Index (RSI).

Daily chart for the BTC/USDT pair. Source: TradingView

The moving averages have started to turn down and the RSI is approaching the oversold zoneindicating that the bears are in control.

The BTC/USDT pair has minor support at $34.322 but if the bulls fail to defend this level, the drop could extend to $32.917.. This is a crucial level to watch because if it breaks down, the pair could witness a panic sell and the next stop could be $28.805.

If the price turns up from $34.322, the recovery could face selling near the 20-day EMA. If the price turns down from this level, it will suggest that sentiment remains negative and traders are selling on rallies. This could increase the prospects for a resumption of the downtrend.

This negative view could be invalidated in the short term if the bulls push and sustain the price above the 20-day EMA. If that happens, the pair could go up to the 50-day simple moving average ($41.466).

4-hour chart for the BTC/USDT pair. Source: TradingView

The falling moving averages indicate that the bears have the upper hand, but oversold levels on the RSI suggest a relief rally or short-term consolidation is possible. If the recovery fails to break above the 20-EMA, the bears could keep selling pressure and the pair could drop to $32.917.

Conversely, if it breaks and closes above the 20-EMA, a major rally could start. The pair could go up to the 50-SMA. Buyers will need to push and sustain the price above $40,000 to signal that the downtrend may be over.

ALGO/USDT

Algorand (ALGO) trading has been inside a descending channel pattern for the past few days. The price bounced off the support line of the channel on May 1, and the bulls have broken through the 20-day EMA ($0.69) hurdle, which indicates that the selling pressure may be easing.

Daily chart for the ALGO/USDT pair. Source: TradingView

If the buyers sustain the price above the 50-day SMA ($0.76), the ALGO/USDT pair could rally to the resistance line of the channel.. This is an important level for the bulls to break through. If they succeed, the start of a new upward movement will be suggested. The pair could first rise to $1.10 and then to $1.25.

On the other hand, if the price breaks away from the resistance line, it will suggest that the pair could stay inside the channel for a few more days. The bears will have to break down and sustain the price below the channel to signal a resumption of the downtrend.

ALGO/USDT 4-hour chart. Source: TradingView

The 20-EMA has turned to the upside and the RSI is in positive territory, indicating an advantage for buyers.. There is a minor resistance at $0.80 and if the bulls break through this hurdle, the pair could rally to the resistance line of the channel.

On the negative side, the 20-EMA is the critical level to watch. If the price rebounds from this level, it will suggest that the sentiment has changed in favor of the buyers.. This could increase the probability of breaking above $0.80. On the other hand, if the price breaks below the 20-EMA, the next stop could be the 50-SMA.

XMR/USDT

Monero (XMR) has been finding support near the psychological support at $200 for the past few days. The buyers have not allowed the price to break below the downtrend line, which suggests that they are trying to turn the level into support.

XMR/USDT pair daily chart. Source: TradingView

The bulls will need to push and sustain the price above the 20-day EMA ($223) to suggest that the corrective phase may be over.. There is a minor resistance at $240, but if the bulls break through this hurdle, the XMR/USDT pair could rally to $289.

Conversely, if the price turns down from the current level or the 20-day EMA, it will suggest that the bears have not given up yet. This could increase the probability of a break below $200. If this happens, the selling could intensify and the pair could drop to $150.

4-hour chart for the XMR/USDT pair. Source: TradingView

The pair has formed a symmetrical triangle pattern that suggests indecision between the bulls and the bears. If the bulls break out of the resistance line of the triangle, the downtrend could end. The pair could rally to the 200-SMA and then rally towards the pattern target of $252.

Conversely, if the uncertainty of the triangle resolves to the downside, it will suggest that the triangle has acted as a continuation pattern. That could indicate the resumption of the bearish movement. The pattern target on the downside is $164.

XTZ/USDT

Tezos (XTZ) broke below the long-term uptrend line on April 29 and the bears successfully defended the breakout level on May 5. The bears tried to start the downtrend but are struggling to sustain the lower levels.

Daily chart for the XTZ/USDT pair. Source: TradingView

If the bulls push and sustain the price above the uptrend line, it will suggest that the markets have rejected the breakout. The XTZ/USDT pair could then attempt a rally to the upper zone between the 50-day SMA ($3.18) and $3.40.

This positive view could be invalidated if the price turns back down from the uptrend line.. If that happens, it will suggest that the bears have turned the uptrend line into resistance. A breakout and close below $2.39 could start a new downtrend that could reach $2.

4-hour chart for the XTZ/USDT pair. Source: TradingView

The 20-EMA has flattened out and the RSI has formed a bullish divergence on the 4-hour chart, suggesting that negative momentum is weakening. The pair could attempt a rally to $2.90, where the bears could offer stiff resistance. If it breaks and closes above this level, it would open the doors to a possible move higher towards $3 and then towards $3.30.

On the other hand, if the price turns down from the current level or overhead resistance, it will suggest that the bears are selling on the rallies. This could keep the pair in a range between $2.90 and $2.39. The downtrend could accelerate if the bears sink the price below $2.39.

THETA/USDT

Theta Network’s THETA token has been trading between $2.27 and $4.40 for the past few weeks. This range resolved lower on May 6, indicating that the bears were in control.

Daily chart for the THETA/USDT pair. Source: TradingView

Although the 20-day EMA ($2.57) is sloping down, the RSI is attempting to form a bullish divergence, indicating that the selling momentum is weakening. If the bulls push the price back above the breakout level of $2.27, it could trap several aggressive bears who may have initiated short positions on the break below the range.

The THETA/USDT pair could then rally to the 20-day EMA. This is an important level to watch out for because if the bulls break out of this barrier, the pair could rally to the 50-day EMA ($3.10).

This positive view could be invalidated if the price turns down from the current level or the breakout level at $2.27 and drops below $2..

THETA/USDT 4-hour chart. Source: TradingView

The bulls are buying the dips near the psychological level of $2. If the buyers drive the price above the downtrend line, this will suggest that the bears may be losing their grip. The pair could rise to the resistance of $2.64. This level could again act as a strong resistance, but if the buyers overcome this hurdle, the upside momentum could pick up.

Conversely, if the price breaks away from the 20-EMA or the downtrend line, it will suggest that the bears are still selling on the rallies. That could increase the possibility of a break below $2 and resumption of the downtrend.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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