Over the past week, Bitcoin has experienced significant price swings within its consolidation range, influenced by various macroeconomic factors, such as Jerome Powell’s speech. As Bitcoin falls short of investors’ near-term bullish expectations, more and more capital is pouring into the altcoin sector. Looking ahead to the week ahead, a substantial recovery rally in the altcoin market is expected, with Ethereum, Litecoin, and Shiba Inu potentially leading this rally.
Altcoins on the brink of recovery
Bitcoin price continues to show volatility around $26,000 in response to Powell’s aggressive comments. This development is somewhat to be expected given the bearish trend that Bitcoin has exhibited in the days leading up to the Jackson Hole symposium. Traders had prepared for Powell’s continued moves to contain inflation so that it would come in line with the central bank’s 2% target.
Amidst this, the prices of Ethereum, Litecoin and Shiba Inu have been fluctuating around key support levels. With sellers failing to push prices further down, a potential recovery of these support levels is expected over the next week.
Ethereum Price Analysis
The price of Ether recently attempted to move above USD 1,700 but failed to hold its position, indicating a strong defense against the bears at this price point.
The falling moving averages and the RSI below the centerline suggest that bearish momentum is still dominating. Sellers will likely aim to push the price towards a $1,625 to $1,544 range. If successful, we could see a drop below the support channel, pushing ETH price down towards the $1,360 level.
Conversely, bulls do not easily leave the field. They are expected to vigorously defend the support zone and try to push the price above the 50-day EMA of $1,678. If they pull this off, it would imply that 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 range of USD 60 to USD 67 for the past few days. While the bulls managed to hold a decline below the USD 60 support level, they failed to break past the USD 67 resistance.
Prolonged consolidation often leads to solid breakout momentum, and the LTC price could soon experience that. If the bulls successfully break above consolidation next week, LTC price could initially target the 200-day EMA at $77 before targeting the more ambitious $85, where significant bearish activity is expected.
Conversely, it is critical for the bulls to defend the USD 60 support level. Failing to do so could trigger the next downward phase, potentially pushing the price towards $47.
Shiba Inu Price Analysis
The extended wick on SHIB’s candle pattern indicates that bearish traders are still active and selling during upward moves.
If the price breaks below the USD 0.000008 immediate support level, it would imply that the bears are still in control. In such a scenario, SHIB’s price could drop to a low of $0.0000077. A further drop below this point could trigger a retest of the long-standing support at $0.00000705.
On the other hand, a rise above the EMA50 will reinforce bullish positions, pushing the meme coin towards $0.00001.