Weekly Cryptocurrency Analysis: Altcoins Make Short Recoveries As The Market Reaches An Overbought Region

Cryptocurrencies are trading in a bullish trend zone as they break above moving average lines. Altcoins are making short recoveries as they trade in the overbought region of the market.

Currently, cryptocurrencies are retreating and could find support above the breakout levels.

Maker

The price of Maker (MKR) is in an upward correction as it breaks into the uptrend zone. The altcoin rose to the high of $885. The uptrend was slowed down by the recent high. The current resistance is the historical price level of August 20. The upward movement will continue if the price breaks the resistance at $885. MKR will continue to rise to the high of $1,180. MKR will decline above the moving average lines if it encounters rejection at the recent high. 

On the other hand, the altcoin will fall to a low of $683 if the price drops below the 50-day line SMA. MKR is approaching the overbought zone as it approaches the 68 level of the Relative Strength Index for the 14 period. Maker is the best performing cryptocurrency asset and has the following characteristics:

Current Price: $850.81

Market capitalization: $855,553,430

Trading volume: $37,228,310

7-day gain: 17.04%

Elrond

Elrond (EGLD) is in an uptrend and reached the high of $56.74. The current uptrend has stalled in the last three days. EGLD is trading in the overbought zone of the market. Further upward movement will be short-lived as the market reaches the overbought area. 

On October 4, the uptrend; a retraced candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that EGLD will rise to the level of the 1.272 Fibonacci extension or $58.90. The cryptocurrency is trading in the overbought zone above the 80% area of the daily stochastic. This suggests that the altcoin could be trending lower. EGLD is the cryptocurrency with the second best performance this week. It has the following characteristics:

Current Price: $55.15

Market capitalization: $1,732,588,509

Trading volume: $74, 740, 81 

7-day gain: 16.72

Polygon

The price of Polygon (MATIC) is in an uptrend as the price is moving above the moving average lines. The cryptocurrency has reached an overbought area at $0.86. Further upward movement of MATIC is doubtful as the market has reached the overbought area. In a similar price action, the altcoin was dumped in an overbought region at $0.94 on September 12. The cryptocurrency fell to the current support at $0.70. Today, the current decline could extend to the low of $0.70. 

However, if it retraces above the moving average lines, a new uptrend could start. The downtrend will continue if the price falls below the moving average lines. The MATIC has risen into an overbought area above the 80% area on the daily chart’s Stochastic. This is an invitation for sellers to enter the overbought region. MATIC is the third best performing cryptocurrency and has the following characteristics: 

Current Price: $0.8462

Market capitalization: $8,461,297,456

Trading Volume: $8,458,260,678 

7-Day gain: 17.04%

Convex Finance 

The price of Convex Finance (CVX) is in an uptrend and has risen to a high of $5.77. The altcoin will go down if it reaches the resistance zone of $5.80. The RSI has already shown that the market has reached the overbought zone of the market. On October 4, the uptrend; a retreating candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that CVX will rise but reverse at the 1.272 Fibonacci extension level or $5.69. CVX is trading in the overbought zone at the level 71 of the Relative Strength Index of the period 14. The cryptocurrency is the fourth best performing cryptocurrency this week. It has the following characteristics:

Current price: $5.50

Market capitalization: $550,222,106

Trading volume: $12,746,114

7-day gain: $13.95%

Reserve Rights

Reserve Rights (RSR) price is in an uptrend. The current uptrend has reached the high of $0.01080. The cryptocurrency has been in a sideways trend since May. It was trading between $0.005325 and $0.008730. On September 27, the range was broken when the cryptocurrency reached the high of $0.01080. The altcoin is on the retreat as it reached the overbought zone.

On the uptrend on September 27, a retreating candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests RSR will rise but reverse at the 1.272 Fibonacci extension level or $0.009810. The altcoin is in a bearish momentum as it is below the 80% area of the daily stochastic. It is falling to the downside and is the fifth best performing cryptocurrency asset with the following characteristics:

Current price: $0.008987

Market capitalization: $896,012,121

Trading volume: $896,012,121

7-day gain: 13.04%.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing in funds.

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