Weekly Cryptocurrency Market Analysis: Altcoins Continue Rally, But Higher Levels See Selling Pressure

After crossing the moving average lines, cryptocurrencies started to move in a bullish direction.

The problem with cryptocurrencies is that altcoins have entered overbought market segments. Bullish momentum is drying up in the overbought region. Selling pressure has returned as sellers emerge in the overbought region of the market. Let us take a look at each of these cryptocurrencies below.

Gala

The price of Gala (GALA) has risen above the $0.015 support level, indicating an uptrend. The altcoin was previously in a downtrend, falling from a high of $0.84 to a low of $0.015. GALA rose above the support level of $0.015 today, reaching a high of $0.051. As GALA approached the overbought area of the market, the positive momentum stalled. GALA has fallen back below the resistance level of $0.045 since January 9. A candlestick retracing the January 9 uptrend tested the 61.8% Fibonacci retracement line. According to the retracement, GALA will rise to the level of 1.618 Fibonacci extension or $0.071. With a level of 79 on the Relative Strength Index for the 14 period, the altcoin is still in the overbought zone. The best performing cryptocurrency has the characteristics listed below. 

Current price: $0.04104

Market capitalization: $1,424,122,010

Trading volume: $602,314,611 

7-day gain/loss: 121.62%

Zilliqa 

Zilliqa (ZIL) entered the positive trend zone as the price climbed above the moving average lines. The altcoin rose to a high of $0.027 on January 9 before falling back. The altcoin reversed course and reached its breakout level, which was $0.023. If the price rises back above the $0.023 breakout level or the moving average lines, the current uptrend could continue. The initial resistance around $0.025 will be tested again if the cryptocurrency rises. However, if the price falls below the moving average line, selling pressure would resume. ZIL will fall and return to its previous low of $0.015. The altcoin is currently trading above the $0.023 support. ZIL is experiencing bearish momentum below the daily stochastic threshold of 80. It has the following characteristics and is the second best performing cryptocurrency: 

Current price: $0.02296

Market capitalization: $482,712,022 

Trading volume: $82,925,911 

7-day gain/loss: 34.43%

Lido DAO 

Lido DAO (LDO), which reached a high of $2.61, is currently trading in the positive trend zone. The uptrend came to an end on January 8 when the market entered an overbought zone. LDO fell to a low of $1.81 today. The altcoin has fallen to the previous resistance level of the historical price on November 4. If it holds above the current support, the uptrend will resume. If the current support is broken, the altcoin will drop down to its lows of $1.00 and $1.20. LDO is currently trading at 71 on the Relative Strength Index for the 14 period, which means it is overbought. LDO will continue to move lower as sellers will emerge in the overbought position. The third cheapest cryptocurrency is LDO.

Current price: $1.80

Market capitalization: $1,802,677,966

Trading volume: $113,823,722 

7-day gain/loss: 30.93%

Avalanche

The price of Avalanche (AVAX) has been fluctuating sideways since the price drop on November 9. The cryptocurrency’s price fluctuated between $12 and $16 recently. The altcoin rallied on January 11 and encountered resistance at $16. The obstacle at $16 prevented the upward momentum from being maintained. The cryptocurrency entered an overbought area of the market. As sellers emerge in the overbought area of the market, AVAX falls. Following a retracement, the altcoin is currently circling above the $15 support. If AVAX loses the current support, it will fall to a low of $12. At the 72 level of the Relative Strength Index for the 14 period, Avalanche is overbought. This week it is the fourth best cryptocurrency. It has these characteristics: 

Current price: $15.30

Market capitalization: $11.018.497.018

Trading volume: $1,011,155,189 

7-day gain/loss: 27.80

Optimism 

Optimism (OP) is in the positive trend zone as the price is running above the moving average lines. The price of the coin rose to a high of $1.40 before being rejected. The market is overbought near the current resistance level. The price of the cryptocurrency will retest the $1.40 resistance for the third time since September 9. The cryptocurrency will fall below the moving average lines on each retest. OPthe price of /USD has fluctuated between $0.80 and $1.40 over the past three months. If the market encounters bullish exhaustion today, OP could decline. With a stochastic value above 80 on the daily chart, the altcoin has reached the overbought zone. The fifth-best cryptocurrency is called OP. It has these characteristics: 

Current price: $1.40 

Market capitalization: $5,959,578,654 

Trading volume: $242,430,558

7–day gain/loss: 25.27%

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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