The cryptocurrency market is gaining momentum as Bitcoin (BTC) holds above $108,000, targeting new all-time highs. Among altcoins, Arbitrum (ARB), Pyth Network (PYTH), and Immutable (IMX) are leading the charge with significant gains over the past 24 hours. These assets are attempting to break key resistance levels, potentially setting the stage for extended recovery rallies.
Arbitrum Aims to Break Supply Zone
After an 18% surge on Sunday, Arbitrum (ARB) experienced a minor pullback of 1% as of Monday. Despite this, ARB maintained much of its recent 37% weekly gain as it challenged the $0.35 supply zone.
A daily close above this supply area, marked in yellow on the chart, could propel the token toward the 200-day Exponential Moving Average (EMA) near $0.45.
The Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover last Thursday, with the MACD line crossing above its signal line, suggesting growing upward momentum.
The Relative Strength Index (RSI) broke above the midline, reaching a reading of 58, indicating increased buying pressure.
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A rejection from the supply zone could lead to a retest of support at the 50-day EMA around $0.34.
Pyth Network Targets Break Above 50-Day EMA
Pyth Network (PYTH) rallied 30% last week after hitting a yearly low of $0.080 on June 22. At the time of writing, PYTH is down nearly 1% after climbing 10.85% on Sunday.
The altcoin is struggling near the 50-day EMA at $0.117, resulting in its first bearish candle in five days. A decisive break above this dynamic resistance could see PYTH extend gains toward the monthly high of $0.131.
The MACD indicator shows growing green histogram bars above the zero line, signaling increasing bullish momentum.
The RSI rebounded sharply from oversold conditions last week, breaking above the midline to 51, suggesting renewed buying interest.
A reversal could extend the current decline toward the yearly low of $0.080.
Immutable Challenges Key Resistance Trendline
Immutable (IMX) dipped 1% as of Monday, pulling back from the 50-day EMA at $0.50. Last week's 30% rally brought the token to test a long-term resistance trendline formed by connecting the highs from May 11, May 23, and June 11.
A decisive daily close above both the trendline and the 50-day EMA could open the path toward the monthly high of $0.58.
The MACD triggered a buy signal on Wednesday as the MACD line crossed above its signal line. Fresh green histogram bars emerging from the zero line suggest a bullish trend is developing.
The RSI has reached neutral levels after rebounding from oversold territory, indicating significantly reduced selling pressure.
Failure to maintain Sunday's bullish momentum could lead to a decline toward the yearly low of $0.33.
Frequently Asked Questions
What caused today's crypto market rally?
The broader cryptocurrency market is gaining strength as Bitcoin maintains its position above $108,000, creating positive sentiment across altcoins. Specific assets like ARB, PYTH, and IMX are showing strong technical setups that suggest potential continuation of recent gains.
How can I identify potential crypto gainers?
Look for assets showing strong technical indicators like bullish MACD crossovers, RSI readings above 50, and attempts to break key resistance levels. Volume analysis and moving average convergence can also provide valuable signals for identifying emerging trends.
What are the risks of chasing crypto pumps?
While double-digit gains can be attractive, chasing pumps carries significant risk. Assets often experience pullbacks after rapid price increases, and without proper risk management, traders can face substantial losses. Always consider technical support levels and market conditions before entering positions.
How important are moving averages in crypto trading?
Moving averages serve as dynamic support and resistance levels that help traders identify trend direction and potential reversal points. The 50-day and 200-day EMAs are particularly watched by traders for significant breakout or breakdown signals.
What should I consider before investing in recovering cryptos?
Evaluate both technical indicators and fundamental factors. Check project development activity, community engagement, and market sentiment alongside technical patterns. Ensure you understand the project's value proposition and potential catalysts that could sustain recovery momentum.
How can I manage risk during market volatility?
Implement proper position sizing, use stop-loss orders, and diversify across different assets. Avoid investing more than you can afford to lose, and consider taking profits at predetermined targets rather than chasing maximum gains.
This content is for informational purposes only and should not be considered investment advice. The cryptocurrency market is highly volatile, and readers should conduct their own research and consult with financial advisors before making any investment decisions.