Crypto markets were generally range-bound during the week.
This comes after a strong rebound for Bitcoin during the last week of August, where the price was unable to break $80k while the rest of the market had mixed performance as traders took profits off the table.
On the other hand, funds continued to rotate among a few altcoins, which fueled the overall market value.
Weekly winners
Why VeChain [VET] still has space to run
VeChain [VET] is undeniably the clear winner this week with a 25% surge that saw it fly above $0.07, a level it last crossed back in mid-May. So, in terms of FOMO, there is a good chance for this rally to extend.
Interestingly, there are other signs in play too. On the technical front, VET has continued this week’s rally following last week’s 30% bulk rally. So in under 14 days, VET has surged over 50%. As a result, it is surely believable that a massive profit-taking could come next, with STHs now under a profit zone.
However, this is where the power of RSI becomes clear because the indicator stays below the overbought level. This suggests that despite VET’s strong rally, the cryptocurrency is still to reach an excessively overextended level and prepare for a significant correction.
Taken together, the strong FOMO, the STHs sitting in profit, and the compressed RSI, there is a possibility that VET could pierce the $0.08 threshold. If it does, then it would continue to climb higher and higher on the current bullish momentum before facing profit-taking pressure from the STHs.
Rain [RAIN] has hit an overextended level
Rain [RAIN] came in second this week with a 22% rally, and, unlike VET’s bullish market structure, its setup looks more volatile, with the altcoin now recording four consecutive weeks of upside.
This has pushed the weekly RSI into the overextended zone, a setup that previously triggered a strong correction during the mid-June cycle. With the broader market still consolidating, capital could continue to flow into RAIN.
If this trend holds, a move toward $0.02 could come into play, but the rally is unlikely to be linear; RAIN could see some short-term relief before another breakout attempt, making HOLD the better call for now.
Solana [SOL] diverges with bullish continuation
Solana [SOL] turned out to be the third-biggest winner this week with a strong 10% rally. It is noteworthy that SOL delivers a bullish continuation after recording a 28% rally across the last week’s trading. Remarkably, SOL continues diverging from the remaining high-caps in this move.
This divergence appears to indicate that SOL’s rally is driven not only by the altcoin rotation but rather by the “Solana-specific” bullish momentum, which makes this divergence a critical point to consider. At the same time, it is worth mentioning that the RSI has yet to reach the overextended territory.
With this in mind, the move towards $110 seems even more probable in the near term, thus putting SOL among the high-cap names to watch out for during the rest of the Q3 cycle.
Other notable winners
Outside the majors, there were also some standout performers this week.
The leader was Pons [PONS], which jumped an eye-popping 543%, followed by Bitlayer [BTR], which surged 540%, and The Index [INDEX], which climbed 327%, rounding out the big three.
Weekly losers
Will Stable [STABLE] price correct deeper?
Stable [STABLE] took the first place in the bears, as the altcoin recorded a 13% correction. On the chart, the bears pushed the price below the $0.03 level and nullified 100% of the gains recorded after the April cycle.
This puts STABLE on a path to enter September near the critical $0.02 support that triggered a 50% rebound in the asset in April, followed by five consecutive weeks of gains. With profit-taking now on the rise, a similar rebound cannot be ruled out.
That said, the RSI is still far above the oversold zone, indicating that STABLE has room to correct further before buyers return to the fray. For now, the critical level to watch for a potential reversal is the $0.02 level.
If bulls come up to the $0.02 support, the altcoin could set up for another rebound and potentially revisit the $0.03 level, otherwise, with RSI staying away from the oversold region, STABLE could extend its decline to find a good reversal area.
Arbitrum [ARB] heads toward a critical inflection point
Arbitrum [ARB] took for the second time as the biggest loser with an 11% correction. Interestingly, the structure of ARB’s movement is similar to that of STABLE’s. ARB’s correction follows the 37% rally from last week, with the bears gaining the upper hand now that the broader risk-off mood has returned to the market.
So far, the bears have managed to drive the price well below the key resistance of $0.105, suggesting further downside risks in the near term. Meanwhile, the RSI indicator remains far from the oversold reading, implying that there is still room for further declines in the short term.
Thus, with the key support at $0.07 under pressure, any further failures to hold above this level could trigger another wave of selling and further weakness in the near term. Conversely, if the bulls manage to defend the key support, ARB bears may have to retreat and allow for a short-term bounce in the price.
Bitway [BTW] may be in a textbook accumulation zone
Bitway [BTW] has posted the third-largest weekly loser with a small 3% correction. While this development on the surface is bearish, this places BTW in a potentially more bullish light. On the chart, the coin has corrected after posting six consecutive weeks of gains
Obviously, this has pushed the RSI indicator to an overbought level, which now reads 90 on the oscillator. However, the correction was relatively shallow, with BTW giving back only 3% of the value in the last week. This hints that investors are not as bearish as one might think, as there is still FOMO in the market.
In this scenario, BTW has the potential to develop an accumulation zone at its current price level. Moreover, if the bulls manage to maintain the current value, it could quickly break towards the $0.5 price level.
Other notable losers
On the downside, the market was full of downsizes.
Velvet [VELVET] took a big hit, leading the way with a drop of 84%, followed by Tutorial [TUT] down 45% and The Interfold [FOLD] coming down 40% as the momentum quickly cooled.
Conclusion
It’s been a wild week, with big pumps and dumps and just generally a lot going on. As always, stay sharp and do your own research and trades wisely.
Final Summary
VeChain [VET], Rain [RAIN], and Uniswap [UNI] led the week in gains.
Stable [STABLE], Bitway [BTW], and Arbitrum [ARB] saw significant declines.