Bitcoin (BTC) and the most significant altcoins are struggling to arise from the sharp drop seen on November 26. This suggests that traders may be hesitant to buy cryptocurrencies at current levels due to the unknowns surrounding the newly discovered heavily genetic mutation coronavirus strain in South Africa.
Bitcoin’s assets under management fell 9.5 percent in November, to $48.70 billion, according to a CryptoCompare report. Additionally, the AUM of altcoin-based crypto funds, on the other hand, rose 5.4 percent to $16.60 billion.
This could, therefore, imply that traders profited from Bitcoin and then invested some of the proceeds in altcoins.
Select altcoins may attract investor attention if Bitcoin recovers from its current level. Let’s take a look at the top five cryptos that are likely to remain in the spotlight in the coming days.
Cryptocurrencies to Look Out for
1. BTC/USDT
Unfortunately, bitcoin has been correcting in a downward channel in the past few days. However, the bulls have been attempting to defend the 100-day simple moving average ($54,064) for the past two days, but the shallow bounce suggests a lack of urgency to accumulate at this level.
Moreover, If the price falls below the 20-day EMA once more, the probability of a break below the 100-day SMA increases. The pair could put the channel support line under pressure. A break below the channel could spark more selling, pushing the BTC/USDT pair below $40,000.
If the price additionally falls from its current level or the overhead resistance and falls below $53,500, the selling could pick up speed. Moreover, the pair could then drop to $50,000, which is a strong support level.
2. BNB/USDT
Binance Coin (BNB) is battling with the bears near the 20-day exponential moving average ($590). Although the price fell and closed below the 20-day EMA on November 26, the bears could not capitalize on this advantage.
However, Bulls pushing the price above $621.30 may cause the BNB/USDT pairing to rally once more to the overhead resistance zone of $669.30 to $691.80.
If the price falls and closes below the 20-day EMA, the pair could fall to the 50-day simple moving average ($546). Additionally, If the price breaks and closes below this support, the pullback could extend to the 100-day simple moving average ($487), then to $440.
The bears, however, attempted to halt the recovery at the 20-EMA. If the price continues to fall, bears will try to push the pair below the 20-EMA.
If they are successful, they could fall to the $564.20-553.80 support zone. A drop below this level could result in a steeper drop to $510.
Consequently, if bulls keep pushing the price above the 20-day EMA, the pair could reach $621.30 and gain momentum.
3. LUNA/USDT
The LUNA token of Terra is trading within an ascending channel pattern. Making it one of the cryptocurrencies you should watch. The bulls successfully defended the channel’s support line between November 24-26, and the price is now above the 20-day EMA ($44.33).
If bulls can keep the price above the 20 days EMA, the LUNA/USDT pair could reach $52. It would then be able to retest its all-time high of $54.95. Near the resistance line, there has been a lot of selling.
Contrary to popular belief, if the price does not remain above the 20-day moving average, it will indicate that traders are selling rallies.
The bears will try to push the price down below this channel. If they succeed, it will be a sign of a possible trend shift. This could cause the pair to fall to $32 or, later, $24.
4. MANA/USDT
Decentraland cryptocurrencies (MANA) fell to $5.90 on November 25. Still, the long tail of candlesticks over the past two days indicates that bulls are attempting to defend the zone between the 38.2 percent Fibonacci level at $4.48 and the 50 percent level at $4.05.
Bulls will, however, try to push the price above the $5.90 mark and resume the uptrend. If they succeed, the MANA/USDT pair could begin its journey towards $7.87.
This bullish view will additionally be invalidated in the short term if the price falls below the 20-day EMA ($3.88). This will indicate that demand is exceeding supply. This could cause the pair to fall to $3.10.
Even though the pair has bounced off the 50-SMA, the bears are aggressively defending the $5 overhead resistance. The bears are now attempting to keep the price below the 50 SMA. Consequently, if they are successful, it will indicate a more profound correction up to $3.90 and then $3.50.
If the price rises above the 50-SMA or current level, the bulls will attempt to push it above $5. This could entice buyers, and the pair could rise to $5.50 or $5.90.
5. SAND/USDT
The Sandbox (SAND) has been reversing its recent strong upward trend. Bulls are attempting to halt the pullback between the 38.2 percent Fibonacci retracement level at $6.02 and the 50 percent level at $5.26. (retracement level).
If the price rises above its current level, sentiment is positive, and traders buy on every slight dip. The bulls will try to push the price above the $8.48 overhead resistance level.
If they reach the next target of $10.52, the SAND/USDT pair may resume its upward trend. If the price falls below the 20-day EMA ($4.84), this bullish outlook may be rendered invalid in the short term.
Contrary to popular belief, if the price falls below the overhead resistance or current level and breaks below the 50-day simple moving average, it may indicate that traders are profiting from relief rallies. This could additionally cause the price to drop even further to $4.50
Invest Wisely
With the sudden rise and fall of cryptocurrencies, it’s wise to always conduct your research before investing in cryptocurrencies.