Bitcoin is at a crossroads, which means it may renew its uptrend or lose support and retreat to lower levels. Uncertainty over high interest rates and a looming recession in the US could work against risk assets such as stocks and crypto. For this reason, investors may want to know which altcoins to sell should Bitcoin slide, triggering cascading price drops in the broader market.
Altcoins To Sell – Stacks (STX)
Stacks stands out as the largest of Bitcoin layer 2 protocols, boasting a market cap of $2.25 trillion as per CoinGecko data. STX experienced a 2.2% increase in the past 24 hours, following a 1.6% surge over the past week. However, the token’s 18% decline over the past 30 days highlights the broader downward trend in the cryptocurrency market since July.
Stacks (STX) is a layer-1 blockchain that aims to expand Bitcoin’s functionality by enabling smart contracts and decentralized applications. The protocol stands out by using Bitcoin’s security and decentralization to provide a programmable layer with its unique consensus mechanism and smart contract language. With this, developers build new applications on top of Bitcoin, potentially opening up new use cases and providing broader ecosystem value.
STX tends to follow BTC’s footsteps, suggesting that investors sell if the larger asset drops toward $55,000. Downside risks may increase if Stacks slides below $1.4 and $1.25 support levels.
Stacks may break out from a triangle pattern based on the four-hour chart. The MACD bucks the bullish outlook on top of near-term confluence support formed at $1.47 by the 20-day EMA and the 100-day EMA.
2. ORDI
ORDI, Bitcoin’s leading BRC token, has continued its upward trajectory after upholding support at $20 in the first week of August. Although it encountered resistance at $30, bullish sentiment remains strong, as evidenced by the recent move, targeting the next significant resistance at $40.
Traders must seek support above $30 before increasing exposure to ORDI this week. Moreover, it is essential to closely follow Bitcoin performance to avoid bull traps.
ORDI is a crypto protocol designed to bring unique functionality to the Bitcoin network, predominantly used as a store of value. Unlike conventional token systems that rely on external blockchains, ORDI is built directly on the Bitcoin blockchain, leveraging its security and decentralization.
3. Merlin Chain (MERL)
Merlin Chain is on the verge of a major breakout; however, its connection to Bitcoin may introduce unforeseen risks and result in a troubled recovery journey. The token currently holds above two key levels flaunted by the 20-day EMA at $0.2216 and the 50-day EMA at $0.2234. If bulls sustain the uptrend and start a new uptrend above $0.23 resistance, they will uphold a smooth move to $0.25 and $0.3.
Based on the altcoins to sell narrative, Merlin Chain is not out of the woods until it breaks above the 200-day EMA. Another major sell-off could erupt if the token breaches the crucial ascending trend line support. The potential Bitcoin downturn to $55,000 may accelerate the downtrend, targeting $0.22 and $0.18 support areas.
Bottom Line
Beyond altcoins sell in relation to Bitcoin price performance, select altcoins to buy could help investors wether the pressure, managing risk, and increasing potential yields toward the end of the year. That said, further research must be conducted on Stacks. ORDI and Merlin to avoid being caught on the wrong side of the trend.
Frequently Asked Questions (FAQs)
Bitcoin has, on several occasions, retested $58,000 in the last two weeks, hinting at a larger swing low.
Investors may consider selling Stacks, ORDI and Merlin Chain if Bitcoin price drops to $55,000.
Bitcoin is a volatile asset, meaning it can go up or down. If support above $60,000 holds, BTC will move higher toward $70,000.
John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: