XRP, LTC, XMR and AVAX show bullish signs as Bitcoin fights to hold $28K

The recent banking crisis in the US seems to have shaken some customers’ faith in the old banking system. According to Federal Reserve data, customers withdrew nearly $100 billion in deposits in the week ending March 15.

US venture capital investor and entrepreneur Tim Draper said in a March 25 report that “entrepreneurs need to consider a more diversified approach to cash management” due to over-regulation of banks and government micromanagement. As part of a contingency plan, Draper suggested that businesses keep “at least 6 months of short-term cash in each of two banks, a local bank and a global bank, and at least two payrolls worth of cash in Bitcoin (BTC) or other cryptocurrencies.”

The transition from the traditional banking system to cryptocurrencies may have already begun, judging by the strong showing of Bitcoin in recent days. Even after the recent rally, investors don’t seem to be rushing to book profits in Bitcoin. However, the same cannot be said for most altcoins as they have witnessed a minor pullback.

In the short term, traders need to be selective of the cryptocurrencies to trade. Let’s study the charts of Bitcoin and pick altcoins that can start the next stage of the up movement.

Bitcoin price analysis

Bitcoin has been hovering around the $28,000 level for the past few days. A consolidation after a strong rally is a positive sign as it shows that traders are holding their position and expect a further rally.

The rising 20-day exponential moving average ($25,936) and the relative strength index (RSI) in positive territory suggest that the bulls are still in control. That improves the prospects for a break above $28,900.

If that happens, the BTC/USDT pair could rally to the $30,000 to $32,000 resistance zone. The bears will try to defend this zone with all their might, because if they fail in the attempt, the pair could skyrocket to $40,000.

The vital support on the downside is $25,250. If this level does not hold, the pair could fall to the 200-day simple moving average ($20,179).

The 4-hour chart shows that the pair has been trading in an area between $26,500 and $28,900 for some time. The 20-EMA is flat and the RSI is just above the midpoint, indicating a balance between supply and demand.

A break above $28,900 would signal that bulls have overpowered the bears. It will indicate the resumption of the up movement. On the contrary, if the price breaks below $26,500, the pair may fall to $25,250 and then to $24,000.

XRP Price Analysis

XRP (XRP) rose above the $0.43 overhead resistance on March 21. The bears tried to catch the aggressive bulls by pulling the price below the moving average, but the bulls held their ground.

Buyers are trying to push the price towards the overhead resistance at $0.51. If bulls clear this obstacle, the ETH/USDT pair could attempt a rally to $0.56. This level is likely to witness aggressive selling by the bears, but if buyers bulldoze through, the next stop could be $0.80.

Another possibility is that the price goes down from $0.51. During the pullback, if bulls turn the $0.43 level into support, it would indicate that sentiment has turned positive. That will increase the likelihood of a break above $0.51.

The crucial support to watch on the downside is $0.40. If this level gives way, the next support is $0.36.

The 4-hour chart shows that the bears are trying to defend the 61.8% Fibonacci retracement level at $0.46 and the bulls are buying the dips to the 20-EMA. This shows a state of equilibrium between the bulls and the bears.

If the price stays above $0.46, it will indicate that bulls have taken control. The pair can then try a rally to $0.49 where the bears can once again mount a strong defense. On the other hand, if the price falls below the 20-EMA, the pair may fall to $0.43 and then to $0.40.

Litecoin Price Analysis

While most major altcoins are struggling to start a recovery, Litecoin (LTC) is showing signs of strength. The 20-day EMA ($86) has started to emerge and the RSI is in the positive zone, indicating upside for buyers.

The LTC/USDT pair may first rise to $98 and then retest the strong overhead resistance at $106. This is an important level to watch because if it crumbles, the pair could accelerate to $115 and then to $130.

Alternatively, if the price declines sharply from $106, it would indicate that bears are active at higher levels. The pair may then fall to the 20-day EMA. If the price pulls back from this level, it would indicate that sentiment remains positive. The bulls will then make another attempt to resume the up movement.

The first sign of weakness will be a break and close below the 20-day EMA. That could open the doors for a drop to $75.

The rebound from the 20-EMA on the 4-hour chart shows that the bulls are viewing the dips as a buying opportunity. The bulls will try to kick the price above $96 and extend the up move to the overhead resistance at $106.

Conversely, if the price breaks below the 20-EMA, it will indicate that the bullish momentum is weakening. The pair could then descend to the uptrend line. This is an important level for the bulls to defend because if it cracks, the pair could fall to $75.

Related: Bitcoin is 1 week away from ‘confirming’ new bull market – analyst

Monero Price Analysis

After trading near the moving averages for a few days, Monero (XMR) has broken out and is trying to climb higher.

The 20-day EMA ($153) has started to emerge and the RSI is in the positive territory, indicating that buyers have the advantage. There is a small resistance at $170, but if bulls overcome this barrier, the XMR/USDT pair could gain momentum and rise to $187 and then to $210.

The moving averages are expected to provide support during pullbacks. A break and close below the 200-day SMA ($150) could turn the trend in favor of the bears. The pair could then fall to $132.

The 20-EMA on the 4-hour chart is sloping up and the RSI is in the positive zone, indicating that bulls have the upper hand. The pair may reach $169 where the bulls may once again face stiff resistance from the bears.

However, on the downside, if bulls do not allow the price to break below the 20-EMA, it will increase the likelihood of a rally above $169. If that happens, the pair could climb to $180 and later to $188.

The first sign of weakness will be a break and close below the 20-EMA. That could open the doors for a possible drop to the 200-SMA.

Landslide price analysis

The bulls have successfully held Avalanche (AVAX) above the moving averages, indicating that lower levels are attracting buyers.

The price has been consolidating between $18.25 and the 200-day SMA ($16.05) in recent days, but this range-bound action is unlikely to continue for long. If buyers lift the price above $18.25, the AVAX/USDT pair will attempt a rally to $22 where they may face strong selling by the bears.

This bullish view will be invalidated in the short term if the price plunges and stays below the 200-day SMA. The pair may then slide to $15.24 and then to $14.

The bulls have been guarding the $16.25 level on the downside, but they have not been able to drive the pair above the resistance line. This indicates that the bears have not given up and they continue to sell at rallies. The flat 20-EMA and RSI near the midpoint do not provide a clear advantage for either buyers or sellers.

This uncertainty can tilt in favor of the bulls if they take out the resistance line. The pair can then start the next stage of the recovery at $20 and later at $22. A break and close below $16.25 would tilt the advantage in favor of the bears.

The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.