As Bitcoin continues trading within established support and resistance zones, we shift our attention to the market dynamics of Chainlink (LINK) and Monero (XMR) this Tuesday, September 5.
Chainlink (LINK)
The global trend on the LINK chart is downward, but the local trajectory remains upward. At the moment, the asset is trading within a range, bounded by support zones of $5.75-$5.88 and resistance levels at $6.22-$6.43. Between these, there's an intermediate resistance level at $6.16.
Should the correction intensify, LINK could potentially retest the $5.6 level and set a new local low below $5.25. This scenario might unfold if Bitcoin continues its descent, pulling altcoins down with it, given the strong correlation with the leading cryptocurrency.
For a return to a bullish trend, buyers need to breach the current resistance zone and establish above the $6.7 mark.
LINK chart on the H2 timeframe
Monero (XMR)
Despite the significant drop since hitting its all-time high ($580) on May 7, 2021, XMR remains on an overall upward trend. Currently, its short-term movement leans bearish, with the cryptocurrency trading within a range between the support levels of $135-$139 and resistance zones of $147-$151.5.
For XMR to resume its bullish trend, it needs to break through the current resistance range and stabilize above the $159 mark. This would potentially set the stage for reaching new local highs above the $170 level.
However, if the leading cryptocurrency continues its decline, XMR's correction could pull it down towards the $131 and $125 benchmarks.
XMR chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNCrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNCrypto:
