The drop over the weekend caused by concerns about Silvergate led to $22,000 in Bitcoin price. Meanwhile, current forecasts from crypto analysts like Raoul Pal suggest short-term bullish moves for these 6 altcoins listed on Bitcoin.
Shiba Inu (SHIB) looks set to rise despite 30% drop
SHIB price struggled to break above multiple support levels in recent days. It has been falling since touching its annual high of $0.0000157 on Feb. Before the drop, there was a significant bearish divergence on the daily RSI (green line) and hit as low as $0.0000107 on March 4. Another important development is the breakout of SHIB price from the $0.0000122 support area. SHIB is currently attempting to confirm the previous long-term descending resistance line as support (green circle).
If it fails, it could drop to the next support at $0.0000100 according to technical analyst Valdrin Tahiri. However, if it bounces, there is a retest of the $0.0000122 area on the cards.
Technical analysis from the six-hour time frame shows that SHIB price has likely completed an ABC retracement structure that started after the year high on Feb.
A 1:1 ratio for A:C waves could lead to a drop to $0.0000099. Although this level has not yet been reached, the $0.000108 support level allows a correction to be possible. This is also supported by the slight bullish divergence developing in the RSI.
$0.0000100 could be the level to attract new buyers
The most likely price action for the Shiba Inu is the completion of wave C between these two levels and then the continuation of the upward move. However, a break below the wave at $0.0000078 invalidates the bullish analysis and could result in an additional drop towards $0.0000050.
In summary, a bottom formation near $0.0000100 followed by an upward move suggests the most likely. A drop below $0.0000078 invalidates this bullish prediction. In this case, the analyst says that we could drop as low as $0.0000050 in SHIB price.
Binance adds support for this altcoin
The world’s largest cryptocurrency exchange pioneered the adoption of the concept of Proof of Reserves right after the FTX crash. As we have quoted as Kriptokoin.com, 11 new altcoins were added to this list yesterday. Enjin (ENJ), one of the members of the list, came to the fore with over 5% rally after the announcement.
Enjin Coin price jumps on Binance news
ENJ has bounced from the critical support level at $0.415, which coincides with the 100-day EMA line, following the Binance announcement. The altcoin, which is up 7.41%, is trading at $0.4087, where at the time of writing it has returned a large portion of its gains.
The Moving Average Convergence Deviation (MACD) indicator is also showing diminishing bearish signs, as observed in the histogram, although no bullish crossover has taken place yet.
If the upside continues, ENJ price could resume its momentum to test and potentially break the $0.485 critical resistance, according to technical analyst Aaryamann Shrivastava. This price action could allow a recovery towards the year-to-date high of $0.547.
But ENJ could be in trouble if critical support is lost. A daily candlestick below this level would invalidate the bullish argument, forcing the price to test the $0.391 and $0.356 lows.
Monero price is trading in the opportunity zone
Monero price formed a local top at $187 on Jan. 14 and formed another swing higher at the same level to move higher. The failure of the bulls signaled a possible takeover from the bears. Since that point, XMR has lost 20%, currently trading at $149.5.
On its decline, Monero price recorded multiple low lows (LL) and lower highs (HL) as seen in the chart below. Connecting these swing points using trend lines creates a falling wedge formation. A definitive break above this setup will usually trigger a bullish retest aimed at a retest of previous swing highs.
In Monero’s case, the most obvious volatility is at $169, where many buys are likely resting. Additionally, the existence of a Fair Value Difference (FVG) stretching from $168 to $170 makes it a better target for bulls.
However, for this impressive rise to begin, Monero price must surpass the $153 resistance. In such a case, traders can expect XMR to trigger a 10% move to $179. In a fairly bullish case, Monero price could touch $187.
decline status
No matter how positive the Monero price setup may seem, traders should avoid taking an early step to open long positions. Sell stops below $143 are crucial and will likely be swept before the uptrend begins.
If the buyers lose control during the stop loss liquidity flood, resulting in this resistance turning into a support base, this invalidates the bullish thesis. In such a case, the Monero price could drop 3% and tag the next liquidity pool at $139.
Raoul Pal Selects ‘perfect setup’ for altcoin market
Real Vision CEO Raoul Pal thinks investors should look to crypto projects like digital nation states rather than assets or technological advancements. The former Goldman Sachs executive says in a new blog post that crypto ecosystems are networks that generate intrinsic and extrinsic value. He argues that the Bitcoin (BTC) network is built on the principle that BTC is an independent monetary system free from the corrupting influence of governments.
Pal adds that the Ethereum (ETH) network, by contrast, shares more similarities with the complex US economy. “In this system, you can start by buying ETH with a deflationary supply, meaning it will become less and less as time goes on,” he wrote in his blog post. Therefore, the ‘central bank’ (staking) is committed to responsible monetary policy designed to ensure that value is maintained and not reduced.”
Pal notes that staking ETH is like buying Treasury bonds with the US government, and decentralized finance (DeFi) is like the riskier banking sector. Real Vision CEO predicts that the complexity of the Ethereum economy will make it larger than the Bitcoin economy over time.
Comparison of altcoin economies with national economies
Pal also compared XRP and Ethereum rival Solana (SOL) to national economies. His choice for XRP was the UK due to its inability to keep up with innovations:
- For example, you can think of XRP as the UK: an old economy that is important and well-established but not growing very fast due to a lack of innovation.
- Solana, on the other hand, could be South Korea right after the Asian crisis when its currency and stock market crashes. It was a unique opportunity that outpaced both USD and SPX for six years. However, it did not stand the test of time. It failed to sustain its outstanding performance. Who knows how Solana will play?
Raoul Pal says leading altcoin project ready for sharer growth in 2023
Pal is going extremely bullish on Ethereum in 2023, noting that now its deflationary supply combined with staking mechanics is setting the stage for a supply shock that will send the price much higher. According to the expert, Ethereum remains the liveliest, deepest, broadest ecosystem in the market, with the best risk and the most institutionalized adoption to reward investment. It also discusses Ethereum’s underlying technological developments, its ability to create decentralized finance applications, and growing network effects.
According to Raoul Pal, we can give the following examples of the main features that made Ethereum stand out throughout the year:
Staking mechanism and Shanghai update
Staking is an innovative mechanism that most people don’t understand. If you stake crypto on Ethereum, you get a return. The Shanghai update means that liquidity is available to any staker at any time, creating a money market curve for Ethereum. This provides financial liquidity to build on or encourages stakeholders to hold and share their money. The staking mechanism is also an important mechanism that makes Ethereum scarce in supply.
https://twitter.com/UpholdInc/status/1630359284121759745
A deflationary supply and bull market
According to Paul, Ethereum is in a deflationary stage of supply, with only 16% of all leaked shares. If it reaches 40-35%, the number of people taking Ethereum out of supply will double, creating a supply shock that could lead to massive spikes of upside volatility that become unmanageable. This can also increase the charges that can leak into tier two, but they’re also less safe to consume. This creates an interesting situation that raises Paul very high on Ethereum.
Network adoption game
Although Ethereum is the easiest way to invest and probably has the least risk, other projects can do much better than Ethereum. For example, Solana is a project that can do better than Ethereum. However, Ethereum has observable network implications beyond any other token ecosystem.
The number of use cases, applications, number of wallet addresses and speed of money make Ethereum special. Network adoption play is also important, and the token has done a great job of attracting attention.
price estimation
While Paul hates to give price predictions, he sees no reason why Ethereum shouldn’t be around $10,000, which is a reasonable increase from the current price. At the time of writing, Ethereum is trading in the $1,500 region, quite far from this level.
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