Top Cryptocurrencies August 2018 Outlook

Bitcoin price enjoyed a decent uptrend in July 2018 and traded towards $8,500. However, altcoins like ETH, XRP, BCH, EOS, XLM, TRON, ADA, LTC and DASH struggled to gain bullish momentum and declined. Let’s analyze all major cryptocurrencies using daily charts and understand how bitcoin and altcoins could trade in August 2018.

Bitcoin price started a solid upward move from the $5,800 swing low against the US Dollar. The BTC/USD pair rallied above the $6,840 and $7,780 resistance levels to move into a bullish zone.

Looking at the daily chart, the price settled above the $7,780 resistance and the 21-day simple moving average. During the upside, there was a break above a crucial connecting bearish trend line at $6,450.

Additionally, there was even a break above the $8,000 psychological level and the price traded as high as $8,511. Later, the price started consolidating gains and corrected lower below $8,000. It tested the 23.6% Fib retracement level of the last wave from the $5,752 low to $8,511 high.

It seems like the mentioned Fib level and the previous resistance zone near $7,780 are acting as a strong support. Should the price decline below $7,780, the next support is at $7,440 and the 21-day SMA.

The most important support awaits near the 50% Fib retracement level of the last wave from the $5,752 low to $8,511 high at $7,130. In the short term, there could be more downsides towards $7,500 and $7,100.

However, dips in BTC/USD are likely to be limited and can be seen as buying opportunity near $7,500 and $7,100. On the upside, the recent swing high at $7,511 is an initial resistance, above which, bitcoin price is likely to accelerate above the $9,200 level in the coming weeks.

Overall, the daily chart of bitcoin is indicating a solid uptrend with key supports at $7,780, $7,450 and $7,100. If bitcoin buyers remain in action, the price will most likely move above $9,000 and $9,200. In the best case, BTC/USD might even test the $10,000 barrier.

Ethereum price followed a bearish structure below $500 against the US Dollar. The ETH/USD pair struggled a lot to recover above the $480 and $500 resistance levels, resulting in a downward move.

The daily chart indicates a bearish bias below the $500 resistance. There is a significant bearish trend line in with resistance at $455 on the same chart, and the last ride from the $408 swing low was rejected near the same trend line.

The price moved above the 23.6% Fib retracement level of the last decline from the $630 high to $408 low. It even broke the $480 resistance and the 21-day simple moving average. However, the upside move faced a strong resistance near $520 and the same trend line.

Moreover, the 50% Fib retracement level of the last decline from the $630 high to $408 low acted as a key barrier for more gains. ETH price is currently under pressure and is following a declining channel with resistance at $470.

Therefore, a proper daily close above these trend lines, 21-day SMA, $470 and $500 is needed for ETH buyers to take control. In the mentioned case, the price could trade towards the $550 and $620 resistance levels.

On the flip side, if the price fails to move above the trend lines and $500, it may perhaps retest a major support at $408-410, which must hold declines. If not, there is a risk of a sharp decline towards the $350 support area.

The daily RSI for ETH/USD is moving south and is currently below 48, which is a negative sign. Therefore, traders must keep a close eye on the $400-410 support area to catch the next move.

Ripple price was under a lot of bearish pressure in July 2018 as it failed to recover above the $0.5000 resistance zone against the US Dollar. The XRP/USD pair recovered from the $0.4260 support area, but it failed to settle above the $0.5000 resistance.

Looking at the daily chart, the price formed a low at $0.4266 and recovered above the $0.4600 level. There was a break above the 23.6% Fib retracement level of the last major drop from the $0.7042 high to $0.4260 swing low.

Though, the price faced a strong sell wall near a significant connecting bearish trend line at $0.5200. Also, the price struggled to clear the 38.2% Fib retracement level of the last major drop from the $0.7042 high to $0.4260 swing low.

As a result, there was a downward move below the $0.4600 support. Ripple buyers are struggling and it seems like the price is about to revisit the last swing low and a crucial support at $0.4260.

Should sellers gain control and the price breaks the $0.4260 support, there could be more declines in XRP/USD in the near term. The next support below $0.4260 is around $0.4040. Below this, the price may move into a long term downtrend towards the $0.3000 support area.

On the other hand, if ripple buyers succeed in clearing the $0.5000 resistance and the same trend line, there may well be decent gains and a solid recovery above $0.6000. An intermediate resistance is near $0.5650 and the 50% Fib retracement level of the last major drop from the $0.7042 high to $0.4260 swing low.

Overall, it seems like the $0.4260 support area holds a lot of importance in the medium term. As long ripple price is above this, it will most likely start a recovery above the $0.4600 and $0.5000 resistance levels in the coming weeks.

Bitcoin cash performed comparatively better than Ethereum and Ripple during the recent bitcoin’s uptrend against the US Dollar. The BCH/USD pair formed a decent support near the $645 level and recovered in July 2018 above $700.

Looking at the daily chart, the price broke the $700 and $750 resistance levels. There was a close above the 23.6% Fib retracement level of the last slide from the $1,220 high to $645 low.

More importantly, the price settled above $750 and the 21-day simple moving average. However, bitcoin cash buyers faced a crucial hurdle near the $900 level and a key bearish trend line with current resistance at $840.

The price also struggled to surpass the 38.2% Fib retracement level of the last slide from the $1,220 high to $645 low. As a result, the price started trading in a range and is currently testing the $780 level and the 21-day SMA.

Should there be a close below $750 and the 21-day SMA, it could open the doors for a fresh downward wave in BCH/USD. The next supports on the downside are at $720 and $700. Below these, the price will most likely test the last swing low of $645.

Having said that, if bitcoin cash price continues to hold the 21-day SMA, it may perhaps break the trend line and resistance at $840. Above this, the price could accelerate gains towards the $1,000 barrier, which coincides with the 61.8% Fib retracement level of the last slide from the $1,220 high to $645 low.

A successful breach and close above $1,000 might push the price in a solid uptrend. The next hurdles above $1,000 awaits near $1,150 and $1,260.

EOS price followed a downtrend during the past few weeks from the $15.00 swing high against the US Dollar. The EOS/USD pair declined and settled below the $10.00 support before starting to trade in a range.

The daily chart of EOS/USD suggests that the price remained in a broad range in July 2018 with a key resistance at $9.30. On the downside, a support base was formed near $6.55 and the price moved higher.

However, the price failed near the 23.6% Fib retracement level of the last decline from the $15.54 high to $6.53 low. More importantly, a major bearish trend line with current resistance at $8.80 is also playing a crucial role in the current decline.

It seems like the price may continue to decline back towards the range support at $6.55, which must hold losses. If buyers fail to keep the price above $6.55, there could be heavy declines in EOS below the $6.00 support area. In the mentioned case, the price may even test the $5.00 psychological level.

On the other hand, if the price breaks the trend line resistance, $9.00, and settles above the 21-day simple moving average, there may possibly be a decent recovery above the $10.00 level.

The next resistance above $10.00 is near the 50% Fib retracement level of the last decline from the $15.54 high to $6.53 low at $11.04. The overall bias is bearish as long as the price is below $8.80, and the $6.55 support is likely to act as a strong support for EOS buyers in the near term.

Stellar price jumped higher in July 2018 and moved above the $0.2500 resistance area against the US Dollar. The XLM/USD pair even broke the $0.3000 resistance level before starting a downward correction.

Looking at the daily chart, the price formed a key support at $0.1800 and climbed higher. It broke many resistances during the rise like $0.2000, $0.2500 and $0.3000, and it settled above the 21-day simple moving average.

A high was formed at $0.3518 and the price started a downward correction. It declined below the $0.3000 support and the 23.6% Fib retracement level of the last wave from the $0.1797 low to $0.3518 high.

The price also broke an ascending channel with support at $0.3100 on the daily chart, opening the gates for an extended correction. It is now approaching a key support at $0.2700, which coincides with the 50% Fib retracement level of the last wave from the $0.1797 low to $0.3518 high.

Below the $0.2700 support, the price may perhaps test a crucial support at $0.2470. The current price action indicates that the price is placed in a positive zone as long as it is above $0.2470. Once the current correction wave is complete, stellar price may perhaps resume its upside move above $0.2800.

An initial resistance on the upside is at $0.3000, above which, XLM/USD is likely to break the $0.3200 level. Finally, if buyers remain in action, the price might revisit the $0.3500 swing high.

To sum up, stellar buyers can keep a close eye on the $0.2700 and $0.2470 support levels. Below this last, the price could decline towards a key pivot level at $0.2180, which is a strong support. The recent decline in trading volumes is helping sellers to gain control, but once bulls are back near $0.2700 or $0.2470, the price is likely to bounce back.

Cardano price mostly declined in May and June 2018 from the $0.3000 swing high against the US Dollar. The ADA/USD pair tumbled and broke the $0.2000 and $0.1500 support levels before finding bids above the $0.1100 level.

Looking at the daily chart, the price recovered in July 2018 and moved above the $0.1400 resistance. The price formed an intermediate low at $0.1220 before the recent rise. There was a break above the $0.1700 and $0.1900 resistance levels and the price traded as high as $0.1970.

Later, the price started a downward move and broke the $0.1800 support area. More importantly, there was a close below the $0.1600 support and the 21-day simple moving average.

The price also broke the 50% Fib retracement level of the last major upward move from the $0.1124 low to $0.1970 high. At the outset, it seems like ADA is trading in a contracting triangle with current support at $0.1360.

If cardano price fails to stay above the triangle support at $0.1360, it could decline back towards the $0.1200 support. Below this, the next major support is near the $0.1100 and $0.1000 levels.

On the upside, an initial resistance is near the $0.1600 level and the 21-day SMA. Above this, ADA/USD may perhaps test the triangle resistance at $0.1700. A successful daily close above the triangle resistance and $0.1720 is needed for buyers to gain control. In the stated case, the price may possibly move towards the last swing high at $0.1970, followed by the all-important $0.2000 barrier.

Overall, buyers must watch the triangle support at $0.1360 for a bounce back in the near term. If not, sellers might take charge below $0.1360.

Litecoin price remained in a bearish zone during the start of 2018 below the $130.00 resistance area against the US Dollar. Later, the LTC/USD pair formed a strong support above $70.00 in June and July 2018, but it failed to gain traction.

The daily chart indicates that the price is trading in a key range above the $70.00 support. A low was formed at $72.85 and the price recovered above the $80.00 level. Litecoin buyers even succeeded in gaining momentum above the $90.00 level and the 23.6% Fib retracement level of the last decline from the $130.24 high to $72.85 low.

Though, the previous support at $94.00-95.00 acted as a key barrier for more gains. Moreover, the 38.2% Fib retracement level of the last decline from the $130.24 high to $72.85 low stopped the recovery.

LTC/USD moved lower in the range and is currently trading below the $85.00 support and the 21-day simple moving average. It seems like litecoin price may continue to move down towards the range support at $72.85.

If buyers fail to keep the price above the $72.85 and $70.00 support levels, the price could decline sharply below $70.00. The next key important support awaits at $60.00. On the flip side, to recover higher, the price has to break the $84.00 resistance and the 21-day SMA.

However, the most important resistance is near the range at $90.00 and $94.00. Above these resistances, litecoin is likely to move into a bullish zone. The next target could be the $108 level and the 61.8% Fib retracement level of the last decline from the $130.24 high to $72.85 low.

Overall, the $72.85 and $70.00 support levels are significant and buyers must be very careful if litecoin breaches these supports. Conversely, sellers must keep a close eye on a break above the $94.00 level, which will most likely ignite heavy upsides in LTC/USD in the near term.

Dash price is in a medium term downtrend from the $570 swing high formed in April 2018 against the US Dollar. The DASH/USD pair consistently declined and broke the $400, $350 and $300 support levels to move into a bearish zone.

Looking at the daily chart, the price traded to a new multi-month low towards $200. A low was formed at $202 in July 2018 before the price attempted an upward recovery. The price moved above the $250 resistance and even climbed above the 21-day simple moving average.

However, the upside move faced a strong resistance near $289-300. More importantly, a crucial bearish trend line with current resistance at $250 acted as a significant barrier for buyers. Additionally, the 23.6% Fib retracement level of the last decline from the $570 high to $202 low also stalled gains.

The last but not the least, the recovery was capped near the previous support zone at $300. Therefore, the recent rejection near the $290-300 zone holds a lot of significance in the near term.

It seems like dash price is likely to decline further and it could retest the $210 and $200 support levels. Should buyers fail to keep the price above the $200 level, there could be a nasty decline. The next key supports in the mentioned case are at $180 and $160.

On the other hand, if DASH/USD succeeds in settling above the trend line resistance, $300, and the 21-day SMA, then it might move into a bullish zone. The next resistance above $300 is $380, which is near the 50% Fib retracement level of the last decline from the $570 high to $202 low.

Therefore, traders can follow the bearish trend line for an upside break above $300. It could be a solid buy entry if DASH successfully settles above the 21-day SMA and the $300 barrier. If not, there is a risk of a bearish break below the $200 handle in the near term.

Tron price followed a declining pattern in July 2018 below the $0.050 resistance against the US Dollar. The TRX/USD pair formed a low near the $0.030 level, traded higher, but failed to break a key bearish pattern.

The daily chart suggests that the price declined heavily from the $0.080 resistance zone and trimmed more than 50% of gains. It traded as low as $0.0312 in July 2018 before attempting an upward recovery.

The price gained traction and traded above the $0.040 resistance. There was also a close above $0.040 and the 21-day simple moving average. However, TRX price failed to clear the $0.043-0.044 resistance zone.

TRX/USD declined and broke the 50% Fib retracement level of the last leg from the $0.0312 low to $0.0436 high. More importantly, the price traded below the $0.036 support and the 21-day SMA, opening the doors for more losses.

It seems like there is a declining channel formed on the daily chart with current resistance near $0.040. If the price continues to move down, it could revisit the last swing low of $0.0312. Below this, tron price may perhaps target a new multi-month low below $0.030.

The next target for buyers might be $0.0283, which is the 1.236 Fib extension level of the last leg from the $0.0312 low to $0.0436 high. In the worst case, the price could test the lower trend line of the channel at $0.0250.

To recover, TRX/USD must move back above the $0.036 level and the 21-day SMA. However, a proper close above the channel resistance at $0.040 is needed for a positive recovery. Should there be a daily close above the channel resistance and $0.040, the price is likely to move higher towards the $0.050 and $0.0550 resistance levels.

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