In the past week, Bitcoin has experienced significant price fluctuations within its consolidation range, influenced by various macroeconomic factors such as Jerome Powell’s address. As Bitcoin falls short of meeting the short-term bullish expectations of investors, capital is increasingly flowing into the altcoin sector. Looking ahead to the coming week, a substantial recovery rally in the altcoin market is anticipated, with Ethereum, Litecoin, and Shiba Inu potentially leading this rally.
Altcoins On The Edge Of Recovery
Bitcoin’s price continues to flash volatility near $26K in response to Powell’s hawkish comments. This development is somewhat expected, considering the bearish trend Bitcoin had been exhibiting in the days leading up to the Jackson Hole symposium. Traders had been preparing for Powell’s ongoing moves on controlling the inflation to align with the central bank’s 2% target.
Amid this, the prices of Ethereum, Litecoin, and Shiba Inu have been hovering near key support levels. With sellers unable to push prices further downward, a potential bounce-back from these support levels is anticipated for the coming week.
Ethereum Price Analysis
Ether’s price recently attempted to break above $1,700 but couldn’t maintain its position, indicating strong defense from the bears at this price point.
The declining moving averages and the RSI below the midline suggest that bearish momentum still dominates. Sellers are likely to aim for pushing the price into the $1,625 to $1,544 range. If successful, we could see a drop below the support channel, plunging the ETH price toward the $1,360 level.
Conversely, bulls aren’t leaving the field easily. They are expected to robustly defend the support zone and attempt to push the price above the 50-day EMA of $1,678. If they manage this, it would imply that the ETH price could continue to hover in a bullish range of $1,785-$1,863.
Litecoin Price Analysis
Litecoin has been trading within a narrow band of $60 to $67 over the last several days. While the bulls have managed to hold a decline below the $60 support level, they’ve been unable to push past the $67 resistance.
An extended consolidation often leads to a solid breakout momentum ahead, and LTC price might experience that soon. If bulls successfully break above the consolidation next week, LTC price could initially target the 200-day EMA at $77 before aiming for the more ambitious $85 mark, where significant bearish activity is expected.
Conversely, it’s crucial for the bulls to defend the $60 support level. Failure to do so could trigger the next downward phase, potentially driving the price to $47.
Shiba Inu Price Analysis
The extended wick on SHIB’s candle pattern indicates that bearish traders are still active, selling off during upward movements.
If the price falls below the immediate support level of $0.000008, it would imply that the bears are still in control. In such a scenario, SHIB’s price could decline to a low of $0.0000077. A further drop below this point could lead to a retest of the long-standing support at $0.00000705.
On the other hand, a surge above EMA50 will strengthen bullish positions, sending the meme coin toward $0.00001.
