Many traders eagerly await the impact of recent developments on the price of BTC in the upcoming days. The news of significant movements of Mt. Gox assets has caught the attention of the crypto community. On May 28, on-chain data indicated the transfer of over $9 billion worth of BTC from multiple wallets controlled by the exchange.
The accumulation of funds is linked to the forthcoming payout to creditors affected by the previous hack. There is speculation about whether the payout will be made in cryptocurrency or cash. If it’s a cash payout, it could potentially lead to a further decline in the price of Bitcoin.
Following this news, the global cryptocurrency market cap experienced a decline of over 2%. The market has shown minimal volatility over the past seven days.
Given the uncertainties surrounding these developments, it’s uncertain how the crypto market will react in the coming week.
Top Five Cryptocurrencies to Watch
BTC/USD
Bitcoin is currently showing a doji pattern on a weekly scale, indicating a lack of significant price movement over the last 48 hours. If the doji closes with a red candle, it would mark the end of a two-week uptrend during which Bitcoin gained over 3% and reached a high of $72,000.
Bitcoin peaked at $70,600 in the previous session but closed below that level, ending the day with nearly 2% gains. However, the current session is witnessing a reversal, with Bitcoin losing all its gains. The price dropped to a low of $67,000 and is now trading at $68,200, down almost 2%. Indicators suggest the possibility of further price declines.
The moving average convergence divergence (MACD) is signaling sell orders, with the 12-day exponential moving average (EMA) approaching the 26-day EMA. This bearish convergence indicates a potential downturn in the near future.
Furthermore, the relative strength index (RSI) is also declining, suggesting an increase in selling volume. If this trend continues, Bitcoin may experience a decline to the 23% Fibonacci retracement level at $66,000, with a further drop possibly leading to a retest of the pivot point at $64,000.
ETH/USD
Ethereum has experienced a significant 24% increase in value over the past week, rising from $3,000 to a peak above $3,900. However, there are indications that a potential market correction may be on the horizon.
Despite a brief uptrend in the previous session with a peak at $3,973, Ethereum is currently showing a red candle and decreased trading volume, reflecting negative market sentiment affecting significant cryptocurrencies.
The relative strength index (RSI) has dropped from 70 to 68, suggesting a potential further decline. Since May 20, the RSI has been trending close to 70, indicating that Ethereum is overbought and due for a correction, which may occur within the next five days.
The 12-day Exponential Moving Average (EMA) has halted its upward movement, and if the downtrend continues, a bearish convergence may occur. The $3,600 support level is crucial, and a failure at this level could lead to a decline towards the 23% Fibonacci level at $3,400. However, there could be attempts by the bulls to push the price towards $4,000 before the week ends.
BNB/USD
Recently, Binance Coin (BNB) has shown a lack of significant price movement, remaining within a narrow range over the last five days. Despite briefly reaching $625 at one point, it quickly retraced back to $600, maintaining its sideways trend. On a weekly scale, BNB is displaying a doji pattern, indicating a decrease in volatility. In the past 48 hours, the coin reached a high of $613 and a low of $573, with no substantial price changes.
The relative strength index (RSI) has stayed above 50, giving an advantage to the bulls in response to the recent price behavior. However, the range-bound movement suggests an imminent breakout, raising questions about the direction it may take.
The Moving Average Convergence Divergence (MACD) histogram has declined over the past seven days, indicating a bearish convergence. This suggests a potential downward movement, with a likely retest of the 23% Fibonacci level at $565. There is strong demand around the $575 mark, where bulls may attempt to defend the price.
SOL/USD
Solana experienced a 4% loss at the end of the previous week, reaching a high of $188, just $2 short of crossing the $190 mark. The bulls are trying to recover from these losses, with the coin showing signs of uncertainty while bouncing back from a drop to $164.
The moving average convergence divergence has been indicating sell signals since last week, with the 12-day EMA intersecting the 26-day EMA. However, the current candle is impacting the divergence.
Despite this, the coin is struggling to maintain a price above $160, and if the bulls fail to defend this level, it may retest the $160 support, potentially leading to a further decline to as low as $140. On the other hand, if the coin stabilizes above $170, it may attempt to reach $180.
XRP/USD
The price of XRP has been consolidating between the narrow range of $0.52 and $0.54, showing reduced volatility over the past five days. Despite this, the coin achieved a modest 3% gain over the previous seven-day period.
Currently, XRP is forming a doji candlestick pattern, indicating indecision in the market and potentially signaling an upcoming breakout.
However, whether this anticipated breakout will occur within the next five days is uncertain. Nevertheless, several technical indicators suggest the possibility of a further price decline.
The Moving Average Convergence Divergence (MACD) histogram is displaying a declining pattern, suggesting a gradual convergence between the 12-day and 26-day Exponential Moving Averages (EMAs).
Furthermore, the 26-day EMA is currently positioned above the 12-day EMA, indicating a bearish trend. Additionally, the 12-day EMA has paused its upward trajectory in response to the recent price movement.
Considering these indicators, it is plausible that XRP may experience further downward movement, potentially retracing to as low as $0.50. The upcoming week will reveal whether the price will indeed reach this level.
Moreover, XRP is trading below the 50-day EMA, implying a bearish sentiment. However, there is a possibility that bullish traders may endeavor to stabilize the price above $0.53.