Investing.com – There is not much going on in the cryptocurrency market at the moment: it is in a consolidation mood after its recent price rally. Same goes for, and Ripple’s native cryptocurrency.
But that could change soon. If you believe the words of Scott Melker, a crypto strategist and Youtuber, seven altcoins are about to breakout, which could also be decisive for the future trend direction.
In a new video, Melker explains to his 83,400 YouTube subscribers why he is watching it right now. According to him, the Ethereum bulls are barely biting their teeth at the resistance at $ 3,330.
“But in the end, ETH has to stay above the $ 3,000 mark. That is the lower limit of this range …” he judges.
The resistance at $ 3,330 has already been tested up to six times, according to Melker. And again and again the bears have not been able to sustainably fall below this mark.
As a rule, the more often a resistance level is tested by the course, the weaker it becomes and the greater the chance of overcoming it.
“We have to get over that and then hope that things will continue to improve.”
According to Melker, Ethereum could rise above $ 3,330 to its higher-level target of $ 4,384.
At around 12.50 p.m. CET, the ether price was up almost 3.5 percent at $ 3,340.
At Cardano, the crypto trader believes that “there are no upper limits” after the cyber currency cracked the resistance at $ 2.47 and then tested it again as a support.
The crypto currency ADA is one of the top cryptos with a price increase of more than 1,400 US dollars since the beginning of the year. The driver for the latest price rally was that the Alonzo upgrade, which is all about smart contract integration, is to be implemented on September 12th. Thanks to the smart contracts function, Cardano will soon also cover the areas of DeFi and DApps.
Another coin on the trader’s radar is (BNB). Melker says that the utility token of the crypto exchange Binance is facing massive resistance, but he is still optimistic for BNB and expects a rebound to the all-time high of $ 691 in May.
“We expect massive resistance in the range between $ 570 and $ 615, but ultimately the price should climb back to $ 691,” he predicted in his video.
The next cryptocurrency that Melker has taken a closer look at is that, according to the crypto strategist, is about to rally. The prerequisite for this, however, is that Ripple can stay above a certain price mark.
“If it stabilizes above $ 1.10, the price can be expected to rise to $ 1.50 to $ 1.70,” believes Melker, who sees the XRP shoot up to $ 2 in the best-case scenario.
The next-generation blockchain (DOT) is also one of the trader’s breakout candidates. Melker believes DOT is currently working on a stable bottom on the daily chart.
“Right now there is very strong resistance between $ 28 and $ 31. The price should actually rise above this area” to complete a bottom. Possibly it is a tweezer floor, as he emphasized.
One speaks of a tweezer when two rovings are on the same level, as is the case with DOT on 26./27. August was the case.
According to Melkers chart, a jump above $ 31 can bring polkadot close to its all-time high of $ 49.
For the decentralized exchange, the crypto strategist is hoping for a breakout above the diagonal resistance at $ 27. Thereafter, UNI could target the targets set by Melker at $ 30 and $ 44.
Finally, the trader takes a look at the (LUNA) chart. Melker sees the cryptocurrency explode to $ 50, especially after LUNA broke out of a bullish flag.
The flag is a downward trend channel in which the previous trend movement is corrected in the course of profit taking. In technical analysis, it is considered a continuation pattern, which is why it usually offers good entry opportunities with dips in the existing trend movement.