The cryptocurrency market experienced a bullish performance last week, despite a short-term bearish reversal that began towards the end of the week and continued into the weekend. However, amidst this temporary slump, three cryptocurrencies emerged as the weekend’s gainers, showcasing positive performances. Bitcoin Cash (BCH) reached a new yearly high, Kava (KAVA) rallied but faced resistance, and Near Protocol (NEAR) initiated a strong rally on Monday.
Bitcoin Cash (BCH) Soars to New Yearly High:
Bitcoin Cash (BCH) has been on an incredible upward trend since June 10, culminating in a new yearly high of $222 on June 24. During a two-week rally, the price of BCH surged by an impressive 145%. Notably, BCH successfully surpassed the critical resistance level of $135 and broke out from a diagonal resistance line, indicating a completion of the correction phase. As of now, the $135 area is expected to provide support.
Given the steepness of the increase, technical analysts believe that the movement is likely part of wave three in a five-wave increase, as per the Elliott Wave theory. This theory studies long-term price patterns and investor psychology to ascertain the trend’s direction. Should this analysis hold true, BCH could experience a temporary fall to the 0.382 Fib retracement support level at $172 before resuming its upward trajectory. Once the short-term slump concludes, there is potential for an increase to $270.
However, it’s important to note that if the BCH price drops below the wave one high at $155, it would indicate a bearish trend. In such a scenario, a further decline to the next support level at $110 can be expected.
Kava (KAVA) Faces Resistance in Bullish Pattern:
Kava (KAVA) has been on an upward trajectory since the beginning of the year, closely following an ascending support line. More recently, it experienced a significant bounce off the support line on June 15, sparking a sharp rally.
While KAVA reached a high of $1.28 on June 25, it struggled to close above the crucial horizontal resistance area of $1.15. Instead, it created a long upper wick, which is considered a sign of selling pressure as buyers were unable to sustain the price increase.
Despite the drop, the $115 area and the ascending support line together form an ascending triangle pattern, indicating a bullish scenario. A breakout from this pattern is deemed the most likely outcome. Additionally, the daily Relative Strength Index (RSI) supports further upward movement. The RSI is a momentum indicator used by traders to determine overbought or oversold conditions and make decisions on accumulating or selling assets. With the RSI above 50 and increasing, it signals a bullish trend for KAVA.
However, if KAVA faces another rejection from the $1.15 area, the breakout may take longer to materialize. In that case, the price could potentially fall back to the ascending support line at $0.85 before resuming its upward trajectory.
Near Protocol (NEAR) Awaits Confirmation of Bullish Reversal:
Since February, the price of Near Protocol (NEAR) has been moving within a descending parallel channel, which is considered a corrective pattern. Similar to the ascending triangle, a breakout from this channel is expected.
Currently, NEAR is in the process of moving above the channel’s midline. A daily close above this level would significantly increase the likelihood of a future breakout. In such a scenario, the price could move towards the next resistance level at $2.70.
However, if NEAR faces rejection from the channel’s midline, it could potentially fall back to the support line at $1.
In conclusion, Bitcoin Cash (BCH), Kava (KAVA), and Near Protocol (NEAR) exhibited positive performances as the weekend’s gainers in the cryptocurrency market. BCH reached a new yearly high, KAVA encountered resistance but maintained a bullish pattern, and NEAR awaits confirmation of a bullish reversal. As always, investors and traders should carefully consider market conditions and perform their own analysis before making any investment decisions.
Disclaimer:
The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments are subject to market risks, and readers should do their own research and consult with a professional before making any investment decisions.
