|

Top 3 Gainers Of The Week NEM, Aave, Synthetix: Leading the altcoin pack as Bitcoin stalls

  • Bitcoin failed to break the resistance at $19,500 while NEM posted a massive 51% growth in seven days.
  • Aave is on the verge of a correction with declines eyeing $40.
  • Synthetix embraces support at the 100 SMA, allowing buyers to regain control over the price.

Cryptocurrencies have had an exciting week, with most of them posting double-digit gains. Bitcoin managed to reclaim its position above $19,000 but failed to overcome the hurdle at $19,500. Selected altcoins rallied massively, with some outperforming BTC.

NEM (XEM), Aave (AAVE), and Synthetix (SNX) elevated the altcoin flag above the horizon, posting 51%, 38%, and 23% in gains, respectively. Other altcoins that performed incredibly well over the week include Litecoin (18%), Ethereum (14%), VeChain (17%), Yearn.Finance (19%) and Compound (23%).

NEM goes ballistic, leading the altcoins recovery

NEM emerged as the best performer in the top 50 after posting incredible gains since the week started. Bulls had eyes on $0.3, but a monthly high was reached at $0.28. Although the momentum is still bullish, a reversal seems imminent.

XEM/USD is trading at $0.26 at writing, but the TD Sequential indicator has recently presented a sell signal on the 12-hour chart. The bearish outlook formed in a green nine candlestick.

If validated, NEM could lose ground in one to four daily candlesticks. On the downside, support is expected at $0.2, the 50 Simple Moving Average at $0.15 and $0.1.

XEM/USD 12-hour chart

XEM/USD 12-hour chart

The Relative Strength Index has emphasized the buyers’ grip on the 12-hour chart. Although overbought, the indicator is still moving towards 90. The gap made by the 50 SMA above the 100 SMA and 200 SMA suggests that buyers are always in control.

Aave’s uptrend hits the tipping point

Aave has been the decentralized finance (DeFi) darling since November. Its recovery has been impressive, having accrued 262% in gains since mid-November. This week was also yielding for crypto, with gains topping 38% at the time of writing.

Meanwhile, AAVE is teetering at $84 amid a looming danger for correction. The TD Sequential indicator presented a sell signal in the form of a green nine candlestick. Aave has already retreated from the weekly peak at $95 and is currently seeking support at the ascending channel’s middle boundary.

Trading below this crucial level could result in massive losses, perhaps to $40. The 50 SMA and the channel’s lower boundary are in line to absorb some of the selling pressure.

AAVE/USD 12-hour chart

AAVE/USD 12-hour chart

It is worth noting that the bullish uptrend will be sustained if AAVE retested the upper boundary and sails through the recent high at $95. Gains above $100 are likely to call for more buy orders, creating enough volume to send Aave to higher levels.

Synthetix is ready to rally again

Synthetix is trading within an ascending parallel channel. A reversal from the monthly high at $5.5 appears to have found formidable support at the 100 Simple Moving Average in conjunction with the lower boundary.

The token is likely to retest the middle boundary resistance before making the final approach to $5.5. Trading above the monthly high might boost SNX towards $10. However, some delay is expected at $6 (former resistance). Meanwhile, the bullish outlook is reinforced by the RSI as it recovers toward the overbought.

SNX/USD 12-hour chart

SNX/USD 4-hour chart

It is essential to keep in mind that the bullish narrative will be sabotaged if SNX slides under the 50 SMA and closes the day below the channel’s lower boundary. The declines that might come into the picture could be strong enough to push Synthetix to the 200 SMA at $4.4.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

More from John Isige
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.