Bitcoin, At the time of publication, prices were consolidating at or above $109,000. This indicates that they are still within the Bollinger Band upper range. The RSI was at at 67.71 – hovering near overbought territory – A sign of strong bullish momentum without immediate signs of exhaustion.
Meanwhile, the OBV remained flat – A sign of a pause in buying pressure, despite recent gains.
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Bitcoin’s range trading has allowed for the capital to be redirected towards altcoins, such as AAVE, XMR and WLD.
BTC is holding up and volatility is decreasing across the board. This could lead traders to be willing to take on higher risk assets in order for them earn more. Bitcoin acts as an anchor, stabilizing the markets.
WLD breaks out, but…
Worldcoin’s bullish momentum is still strong, as it has increased by more than 35% over the last two weeks.
At press time the RSI was 63.94, indicating steady upward pressure but without signals of overboughtness. CMF however remained slightly positive, suggesting a drop in potential buying power.
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The privacy coin market has risen by more than 3% in the last few months, and its total valuation is now over $10 billion.
WLD’s muted capital flows raise questions as to whether the company can continue its growth without stronger inflows.
XMR is in overdrive. But will it cool off?
Monero’s price surged up to $411 in line with the privacy coin rally, which pushed this sector over $10 billion.
However, its daily RSI soared to 81.86 – firmly in overbought territory – raising caution about a potential short-term correction. MACD was positive, with a wide gap between its signal lines. This reinforced the strength of an uptrend.
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The slight drop in volume on a daily basis still suggests a waning of momentum. XMR clearly benefited by the privacy coin story, but traders should prepare for consolidation or a retest if no new catalysts are found to sustain vertical price movement.
AAVE joins rally but signs hint at exhaustion
AAVE rose to $267. This is a continuation of its gains made in May, and it rides the rise across all sectors for tokens linked to privacy and DeFi.
However, with the RSI at 71.57, the asset entered overbought territory – Often a precursor to short-term pullbacks.
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A recent string of candles with small bodies alluded that indecision was creeping into the market despite solid momentum.
The volume may also be falling, so bulls will need something new to keep the momentum going. Even after the near 80% rise seen in the last month, a short consolidation period could be good.
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Source: ambcrypto.com
