Top cryptocurrencies to watch this week

The persistent downtrends from two weeks ago continue to affect the cryptocurrency sector, with the global market cap of the cryptocurrency sector falling by 10.4% to $2.15 trillion by the end of the week, a significant loss of $350 billion.

Here are our picks for the best cryptocurrencies to follow this week:

XRP falls below the bull flag

XRP (XRP) started the week on a rally towards a four-month high of $0.6580 on July 31.

However, as the broader market crashed, XRP corrected those gains. It had formed a bull pennant during the consolidation from July 18-30.

XRP one-day chart – August 1 | Source: Trading View

The formation of the pennant initially hinted at a continuation of the uptrend from July 7 to July 17. However, the asset fell below the pennant when it dropped below $0.55 on August 2, indicating that momentum was turning bearish. As a result, XRP closed last week down 6.5%.

On the daily chart, XRP has dropped below the 0.382 Fibonacci level at $0.5544. If the bearish momentum continues, XRP could drop further to 0.618 ($0.4910), which could serve as its last defense against a drop to early July levels.

At this point, the 0.5 and 0.618 retracement levels are potential support zones. If the price can find support and stabilize at these levels, there may be a chance for a reversal. However, if the bearish pressure continues, XRP could resume its downtrend.

TRX suffers double top decline

Tron (TRX) also started the week on a higher note, but its rise to a high of $0.1394 resulted in the formation of a bearish double top formation. This also coincided with a retest of the upper Bollinger Band ($0.1397), supporting the impending correction.

TRX one-day chart – August 1 | Source: Trading View

Following the double top formation, TRX confirmed the pattern by breaking below the neckline, resulting in a sharp drop to a three-week low of $0.1228. However, TRX found solid support at $0.1228 and is hoping for a recovery.

The current recovery sees the price reverting back towards the middle Bollinger Band, which is acting as short-term resistance near the $0.1330 level, which represents the 20-day SMA.

Considering the bounce from the $0.1228 support level and the current price near $0.1285, it is important to watch if Tron can climb back above the neckline level. Sustained trading above this level could indicate a reversal of the downtrend and potentially a further upward move.

HNT down 18%

Helium (HNT) started last week in a downtrend, posting four consecutive days of declines. It exhibited a one-day recovery gain of 8% on August 1, but those gains were extinguished the following day with an 11.47% drop.

HNT one-day chart – August 1 | Source: Trading View

HNT closed the week down 18%. Furthermore, chart data confirms that Helium is currently trading near the midline of the Keltner Channel (KC).

On the other hand, the Stochastic RSI suggests that HNT is in oversold territory. Stochastic RSI values ​​are around 4.78 for the %K line and 8.04 for the %D line. This suggests that the selling pressure may have been overextended and a potential recovery may be on the horizon.

It is important to watch potential support around the middle KC line at $4.69. If Helium holds above this level and the Stochastic RSI starts to rise, it could signal a buying opportunity.

However, a break below this level could open the door for further declines towards the lower KC boundary at $3.76.

On the other hand, if HNT gains momentum and moves towards the upper KC limit, it will need to break above $5.62 to signal a strong uptrend.