Bitcoin (BTC) rallied to $106,000 just one day before the inauguration of US President-elect Donald Trump. However, the coin that has caught the attention of traders over the weekend is the US President-elect Donald Trump’s memecoin, Official Trump (TRUMP).
Launched on the Solana network on Jan. 17, the TRUMP token hit a high above $79 on Jan. 19. That boosted Solana (SOL) to a new all-time high of $295. However, since then, both TRUMP token and Solana have given back a small percentage of their gains.
While a breakout to a new all-time high cannot be ruled out in Bitcoin, crypto investors should be cautious because experienced traders tend to buy the rumor and sell the news. Any disappointment in meeting traders’ expectations could result in a pullback in Bitcoin and altcoins.
If Bitcoin reaches a new all-time high, several altcoins are likely to join the party. Let’s look at the charts of the top cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin has been gradually rising toward its all-time high of $108,353, where the bears are expected to mount a strong defense.
The 20-day exponential moving average ($98,800) has started to turn up, and the relative strength index (RSI) is in the positive zone, signaling that the buyers have the edge. If bulls pierce the overhead resistance, the BTC/USDT pair could start the next leg of the uptrend to $126,706.
On the other hand, if the price turns down from $108,353, it will signal that bears are active at higher levels. The pair may slide to the 20-day EMA, an important level to watch out for. If the price rebounds off the 20-day EMA, the bulls will again attempt to clear the hurdle at $108,353.
Sellers will have to pull the price below the moving averages to start a consolidation between $90,000 and $108,353 for a few days.
The moving averages are sloping up on the 4-hour chart, and the RSI is in positive territory, indicating an advantage to buyers. There is a minor hurdle at $106,000, but it is likely to be crossed. The pair may then challenge the critical level of $108,353.
Time is running out for the bears. If they want to prevent the upside, they will have to pull the price below the 20-EMA. That opens the doors for a fall to $100,000 and subsequently to the 50-simple moving average.
XRP price analysis
XRP (XRP) is correcting in an uptrend, indicating that the short-term buyers are booking profits.
The XRP/USDT pair could slide to the breakout level of $2.91, a vital level to keep an eye on. If the price rebounds off the $2.91 level with force, it will signal that the bulls have flipped the level into support. That increases the possibility of a break above $3.40. The pair may then rally toward the pattern target of $4.84.
Contrarily, a break below $2.91 will signal that the bulls are losing their grip. The pair may sink to the 20-day EMA ($2.71) and later to the 50-day SMA ($2.44).
The bears pulled the price below the 20-EMA but are struggling to sink the pair to $2.91. This signals buying on dips. If the price rises and sustains above the 20-EMA, the pair could retest the $3.40 resistance. A break above this level could start the next leg of the upward move to $4.10.
If the price turns down from the 20-EMA, the likelihood of a drop to $2.91 increases. Sellers will have to drag and maintain the price below $2.91 to suggest the start of a deeper correction. The pair may plummet to $2.60 and eventually to $2.20.
Solana price analysis
Solana (SOL) surged on Jan. 18 and broke above the overhead resistance at $260, indicating that bulls are in the driver’s seat.
The buyers extended the rally on Jan. 19, but the long wick on the candlestick shows selling at higher levels. The $260 level is likely to witness a tough battle between the bulls and the bears. If the price turns up from $260, the SOL/USDT pair could rise to $300 and later to $375.
Sellers will have to tug and maintain the price below $260 to weaken the bullish momentum. That may tempt buyers to book profits, pulling the pair to $240 and eventually to the 20-day EMA ($212).
The 4-hour chart shows buyers booked profits near the $300 level. That pulled the price to the breakout level of $260. This is a critical level to watch out for because a solid bounce off it will suggest that the bulls are trying to flip the level into support. The pair will again try to break above $300 and resume the uptrend.
Conversely, a weak bounce off $260 will suggest a lack of aggressive buying. That increases the risk of a breakdown to the 20-EMA. If this level also cracks, the pair may collapse to $220.
Official Trump price analysis
Official Trump has witnessed a massive rally since its launch. Due to its short trading history, a 30-minute chart is being used for its analysis.
The TRUMP/USDT pair pulled back from $79 but is finding support at the 20-EMA. This suggests that the sentiment remains positive, and traders are buying the dips. The bulls will make another attempt to clear the barrier at $79. If they manage to do that, the pair could soar to $109.
Alternatively, if the price turns down and closes below the 20-EMA, it will indicate that the traders are aggressively booking profits. The selling could pick up further if the pair drops below $53. That could extend the decline to the 50-SMA.
Related: Insider trading allegations surface as TRUMP memecoin floods Solana DEXs
Algorand token price analysis
Algorand (ALGO) turned down from $0.50 on Jan. 17, indicating that the bears are aggressively defending the level.
The 20-day EMA ($0.40) is turning up, and the RSI is in positive territory, indicating that the bulls have the edge. If the price rises above $0.45, the bulls will again attempt to drive the ALGO/USDT pair above $0.50. If they succeed, the pair may rally to $0.55 and thereafter to $0.61.
This positive view will be invalidated in the near term if the price breaks and closes below the moving averages. The pair may then tumble toward $0.32.
The price has bounced off the 50-SMA, but the bears are trying to halt the relief rally at the 20-EMA. If the price turns down sharply from the 20-EMA, the possibility of a break below the 50-SMA increases. If that happens, the pair could plunge to $0.32.
On the contrary, if the price breaks and sustains above the 20-EMA, it will signal solid buying at lower levels. The bulls will then try to overcome the hurdle at $0.50, clearing the path for a rally toward $0.61.
XDC Network price analysis
XDC Network (XDC) has pulled back in a strong uptrend, but the bulls have not ceded much ground to the bears.
The XDC/USDT pair is finding support near the 38.2% Fibonacci retracement level of $0.12. If the price turns up from the current level and breaks above $0.16, the pair could start the next leg of the rally to $0.20.
Instead, if the price turns down and breaks below $0.12, it will suggest that the bulls are rushing to the exit. The pair could then skid to the 20-day EMA ($0.11). Sellers will have to yank the price below the 20-day EMA to indicate that the pair may have topped out in the short term.
The pair slipped below the 20-EMA, but the bulls bought the dip. Buyers will try to push the price above the downtrend line. If they do that, the pair could reach $0.16. This level may offer stiff resistance, but the pair could resume its uptrend if the bulls prevail.
The 50-SMA is the crucial support to watch out for on the downside. A break and close below this level could sink the pair to the 61.8% Fibonacci retracement level of $0.10.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
