Top 5 Cryptocurrencies to Watch This Week: ETH, XLM, ADA, XMR, CRO

Besides Bitcoin, several major cryptocurrencies are consolidating close to their overhead resistances and could offer buying opportunities in the short-term.

The coronavirus pandemic has crippled the United States’ economy, which is staring at its worst recession since the Second World War. To counter this, the U.S. Federal Reserve has pumped trillions of dollars into the economy. These measures are may result in hyperinflation in the future. Therefore, investors are buying gold and Bitcoin (BTC) to hedge their portfolios.

Crypto market data daily view. Source: Coin360

The top-ranked cryptocurrency by market capitalization has generated increased participation from institutional investors, according to numbers reported by the Chicago Mercantile Exchange.

Contrary to the expectations of a few analysts, BTC has remained strong post-halving and is attempting to break above the psychological resistance of $10,000. If successful, it is likely to pull several altcoins higher. Let’s look at the top five cryptocurrencies that could offer trading opportunities this week.

ETH/USD

Ether (ETH) is trading inside the ascending channel, which suggests that the trend is up. The bulls have pushed the price above the downtrend line, which had been acting as stiff resistance for the past few days.

ETH-USD daily chart. Source: Tradingview

This suggests that the bulls have overpowered the bears and the uptrend is likely to resume. If the second-ranked cryptocurrency on CoinMarketCap sustains above the downtrend line, a rally to $227.097 is possible.

A break above $227.097 could result in a rally to the resistance line of the ascending channel at about $240. Although the 20-day exponential moving average is still flat, the relative strength index has broken out of the downtrend line, which suggests that bulls are at a slight advantage.

However, if the bulls fail to sustain the price above the downtrend line, the bears will attempt to sink it below the support line of the channel. If successful, it will signal weakness. On a break below the channel, a drop to $176.103 is likely.

ETH-USD 4-hour chart. Source: Tradingview

After consolidating near the downtrend line, the bulls have made a decisive breakout, which is a positive sign. The 20-EMA is sloping up and the RSI is close to the overbought zone, which suggests that bulls have the upper hand in the short-term.

Therefore, traders can buy at the current levels and on any retest of the downtrend line. The stop-loss can be kept at $196 and the target objective on the upside is $227.097. At this level, partial profits can be booked and the stops on the rest of the position can be trailed higher.

On the other hand, if the bears mount a stiff resistance at $215-$220 resistance, the stops can be trailed higher to breakeven to reduce the risk. The short-term trend will turn weak if the ETH/USD pair turns down from the current levels and sustains below the downtrend line.

XLM/USD

Although Stellar Lumens (XLM) dipped below the 20-day EMA ($0.067) on May 10 and 11, the bears could not capitalize on this weakness. This suggests strong demand at lower levels.

XLM-USD daily chart. Source: Tradingview

Currently, the bulls are attempting to drive the 11th-ranked cryptocurrency on CoinMarketCap above the downtrend line. If successful, the uptrend is likely to resume and a move to $0.076994 and then to $0.088311 is possible.

The 20-day EMA is gradually sloping up and the RSI is in the positive territory, which suggests that bulls are at an advantage.

This bullish view will be invalidated if the price turns down from the current levels and breaks below the 20-day EMA. If this support cracks, a drop to the uptrend line and below it to the recent lows at $0.06 is possible.

XLM-USD 4-hour chart. Source: Tradingview

After turning down from the downtrend line on two occasions, the bulls have finally managed to propel the price above it. This is a positive sign that could result in a rally to the $0.075-$0.076994 resistance zone.

Therefore, traders can buy after the pair sustains above the downtrend line for 4-hours. The stop-loss for this trade can be kept below the recent lows at $0.066.

The failure of the bulls to sustain the price above the downtrend line will indicate a lack of demand at higher levels. A break below the downtrend line can drag the XLM/USD pair to the uptrend line.

If the pair bounces off the uptrend line, it might again offer a low-risk buying opportunity with a close stop-loss kept just below $0.060. If this level breaks, the trend could reverse downward.

ADA/USD

Cardano (ADA) is currently consolidating in an uptrend. Both moving averages are sloping up and the RSI has risen above the 60 levels, which suggests that the bulls have the upper hand.

ADA-USD daily chart. Source: Tradingview

For the past four days, the 12th-ranked cryptocurrency on CoinMarketCap has been consolidating near the downtrend line. This is a positive sign as it shows that the bulls are not closing their positions as they expect higher prices in the next few days.

If the bulls can propel the price above the downtrend line, the uptrend is likely to resume. There is a minor resistance at $0.0543484, above which the up-move is likely to pick up momentum.

The critical levels to watch on the upside are $0.062 and then $0.072. This bullish view will be invalidated if the price turns down from the current levels and breaks below the 20-day EMA ($0.048). Below this level, a retest of $0.0427288 is possible.

 ADA-USD 4-hour chart. Source: Tradingview

The ADA/USD pair has roughly been trading between $0.050 and $0.052 for the past few days. A breakout of the downtrend line can result in a move to the overhead resistance at $0.0543484.

The bears are likely to defend this level aggressively. However, if the bulls can propel the price above $0.0543484, the pair is likely to pick up momentum. The short-term target level to watch on the upside is $0.0615-$0.063.

Therefore, the bulls can buy on a breakout and close (UTC time) above $0.0543484. The initial stop-loss can be kept at $0.049, which can be trailed higher as the pair moves up. As the pair nears the target levels, the stops can be tightened further to protect the paper profits.

XMR/USD

Monero (XMR) is in an uptrend. The bulls purchased the drop below the 20-day EMA ($62) on two occasions. This suggests demand at lower levels. For the past four days, the price has been trading above the 20-day EMA and near the overhead resistance zone of $66.1545-$68.4175.

XMR-USD daily chart. Source: Tradingview

A tight consolidation near the resistance increases the possibility of a breakout. The gradually upsloping moving averages and the RSI in the positive zone also suggest that bulls have the upper hand.

If the 14th-ranked cryptocurrency on CoinMarketCap breaks above the resistance zone, it is likely to pick up momentum and rally towards its next target objective of $82.3912, which is the 78.6% Fibonacci retracement of the recent down leg.

Conversely, if the price again reverses direction from the current levels and breaks below the 20-day EMA, it will indicate weakness. The bears are likely to have a firm grip if the price dips below the recent lows of $54.0463.

XMR-USD 4-hour chart. Source: Tradingview

The 4-hour chart shows an inverse head and shoulders formation, which will complete on a breakout and close (UTC time) above the neckline. This setup has a target objective of $78. Therefore, traders can buy 50% of the desired allocation on a close above the neckline and keep an initial stop-loss of $62.

The bears might again offer stiff resistance at $68.4175 but if the bulls can drive the price above it, the XMR/USD pair is likely to pick up momentum. Therefore, the remaining 50% of the position can be added if the price sustains above $68.5 for four hours.

If the bulls struggle to clear the minor resistance zone of $70-$72, partial profits can be booked and the stops can be trailed higher. The pair will weaken if it turns down and plummets below $62.

CRO/USD

Crypto.com Coin (CRO) is an uptrend. The bulls purchased the dip below the 20-day EMA ($0.06) on May 10 aggressively. This suggests strong demand at lower levels.

CRO-USD daily chart. Source: Tradingview

Both moving averages are sloping up and the RSI has been trading above the 60 levels, which suggests that bulls are in command. If the bulls can propel the 15th-ranked cryptocurrency on CoinMarketCap above $0.0692, the uptrend is likely to resume.

There is a minor resistance at $0.0736, above which the momentum is likely to pick up. The first target to watch on the upside is $0.0787 and then $0.0816. This bullish view will be negated on a break below $0.062.

CRO-USD 4-hour chart. Source: Tradingview

The 4-hour chart shows that the bulls are attempting to retest the recent highs at $0.0692. The bears might defend this level aggressively but if the bulls can keep the CRO/USD pair above the uptrend line, the possibility of a breakout of $0.0692 increases.

Therefore, the bulls can initiate long positions on a breakout and close (UTC time) above $0.0692. The initial stop-loss can be placed at $0.061, which can be trailed higher as the price moves northwards.

Conversely, if the price turns down from $0.0692, it can dip to the uptrend line. A strong bounce off the uptrend line will signal strength and can offer a low-risk buying opportunity. However, if the bears sink the pair below the uptrend line and the recent lows at $0.062, the short-term bullish trend may be at risk.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The market data is provided by the HitBTC exchange.