A majority expects the Fed to raise rates by 75 basis points at the next meeting on September 20 to September 21, but the FedWatch tool shows an 18% probability of a 100 basis point rate hike. This uncertainty may keep traders on edge, resulting in higher volatility in the short term.
If the Fed rate hike is in line with market expectations, select cryptocurrencies may attract buyers. Let’s examine the charts of five positive cryptocurrencies in the near term.
BTC / USDT
Bitcoin recovered from $19,320 on September 16 and rose above $20,000 on September 17, but the bulls are struggling to maintain higher levels. This indicates that the bears are active at higher levels.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average (EMA) at $20,432 has gradually declined and the Relative Strength Index (RSI) is in negative territory, indicating that sentiment remains negative and traders are selling near general resistance levels.
If the price continues lower and breaks below $19,320, the BTC/Tether (USDT) pair could drop to $18,510. Buyers are expected to defend this level aggressively.
On the upside, the 50-day simple moving average (SMA) at $21,605 is the key level to watch. If the bulls push the price above it, the pair could rise to $25211. A breakout and a close above this resistance may signal the start of a new bullish trend.
4 hour BTC/USDT chart. Source: TradingView
The 4 hour chart shows that the sellers are trying to stop the recovery at the 20-EMA. This indicates that the bears are not in a mood to compromise. If the weakness continues and the price breaks below $19,320, the pair could drop to $18,510.
On the contrary, if the price rises from the current level and breaks above the 20-EMA, the recovery may extend to the 50-SMA. This level may act as resistance again but if this hurdle is removed, the next stop could be the 61.8% Fib retracement level at $21,470.
XRP / USDT
Ripple (XRP) has been stuck within the $0.30-$0.39 range for several days. The price has reached the range resistance, and if the bulls cross this hurdle, it could signal the start of a new bullish trend.
XRP/USDT daily chart. Source: TradingView
In a range, traders usually buy near support and sell near resistance. If the price drops sharply from the current level and breaks below the moving averages, this will indicate that the XRP/USDT pair may extend its consolidation for a few more days.
Although the moving averages are crossing each other, the RSI has jumped into positive territory, indicating that the bulls have a slight advantage. If buyers drive the price above $0.39 and hold it, the pair could rise to $0.48.
4 hour XRP/USDT chart. Source: TradingView
The pair rose sharply from $0.32 to $0.39, indicating strong buying by the bulls. The 20-EMA has emerged and the RSI is in the positive territory, indicating that the path of least resistance is to the upside.
If the price continues to rise and breaks above $0.39, the bullish momentum may increase and the pair may rise to $0.41. This level may act as resistance but if buyers turn the $0.39 level into support, the upward movement can resume.
Correlation / USDT
Chainlink (LINK) has been stuck in a large range between $5.50 and $9.50 over the past several weeks, which indicates that buyers are trying to bottom out. The bulls pushed the price above the moving averages and the RSI jumped into positive territory, indicating that the positive momentum could improve.
LINK/USDT daily chart. Source: TradingView
There is a minor resistance at $8.30, and if the bulls push the price above it, LINK/USDT could rise to the extreme resistance at $9.50. This level is likely to attract strong selling by the bears, but if the bulls break through the barrier, it could signal the start of a new bullish trend.
Moving averages are the important support to watch on the downside because if they pull back, selling pressure could rise. This could start as low as $7.00 and later to $6.20.
LINK/USDT 4-hour chart. Source: TradingView
Buyers are trying to defend the moving averages on the 4 hour chart. That could start to recover towards the general resistance at $8.20. If the price rises above this upper resistance, the pair could rise to $9.00.
If the bulls fail to push the price above $8.20, the bears may imagine their chances and try to sink the pair below the moving averages. This feature may tilt in favor of the bears. The pair can go down first to $7.50 and then to $7.00.
Related: Dogecoin Has Crashed 75% Against Bitcoin Since Elon Musk’s SNL Appearance
EOS / USDT
Bears pulled the EOS below the 50-day simple moving average at $1.44 on September 15, but were unable to break the support at $1.34. This indicates that bulls Bo