This week, Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX) and selected altcoins broke and rose above critical resistance levels, pushing the total crypto market capitalization to over $2 trillion on March 24. One of the triggers that could boost crypto prices was BlackRock CEO Larry Fink’s letter to shareholders in which he said the Russia-Ukraine conflict has opened up avenues for cryptocurrencies to be used as a settlement method for international transactions.
Another piece of news that could help with the rise in crypto prices was that Goldman Sachs redesigned its website with an emphasis on the growth of cryptocurrencies and the metaverse, and referred to them as “megatrends”. Alongside the growing institutional interest, Minneapolis Federal Reserve Chairman Neel Kashkari’s announcement that the central bank could raise interest rates up to seven times in 2022 to curb inflation may have fueled the bullish sentiment in cryptocurrencies. Can the bulls sustain higher prices and build on the upside, or will the bears sell aggressively and trap buyers? Let’s answer it with technical analysis from analyst Rakesh Upadhyay.
BTC, ADA, SOL, AVAX and DOGE analysis
Bitcoin closed at $42,594 on March 23, showing that the bulls are absorbing supply by the bears. This opened the doors for a move to $45,400 where the bears could form a strong defense again.
Both moving averages have gradually risen and the RSI is in the positive territory, indicating an advantage for buyers. If buyers push the price above $45,400, the BTC/USDT pair could rally towards the resistance line of the ascending channel. If the bulls break this hurdle, BTC could reach the solid top zone between the psychological resistance of $50,000 to $52,000. Any correction from the current level is likely to find support near $42,594 and the moving averages. The bears will need to push and sustain the price below the moving averages to indicate that the bulls may lose control.
Ethereum (ETH)
The bulls are trying to protect Ethereum (ETH) above the resistance line of the symmetrical triangle but the long wick on the candlestick indicates that the bears are selling aggressively higher.
The moving averages have completed the bullish crossover and the RSI has moved into the positive territory, indicating the path of least resistance to the upside. If the price continues above the triangle, the ETH/USDT pair could rally to $3,500 and then to the $3,907 pattern target. Contrary to this assumption, if the price re-enters the triangle, the bears will try to pull the pair towards the moving averages. If the price bounces back from the moving averages, it indicates that the sentiment remains positive and investors are piling on the dips. This will increase the likelihood of a breakout above the triangle. The bears will have to push the price below the moving averages to reject the bullish outlook. The pair may then extend its stay inside the triangle for a few more days.
BNB (BNB)
BNB has been consolidating in a wide range between $445 and $350 for the past few days. There is a minor resistance at $425, but if the bulls clear this hurdle, a move to $445 is possible.
The moving averages have completed a bullish crossover and the RSI is in the positive territory indicating a possible change in trend. A break and close above $445 could open the doors for a possible rally to $500. Alternatively, if the price breaks from the current level or overhead resistance level and dips below the moving averages, it means that traders can book profits near the resistance. This could keep the BNB/USDT pair in range for a few more days.
Ripple (XRP)
Ripple (XRP) is facing a strong resistance at $0.86. A minor positive is that the bulls are not allowing the price to drop below the moving averages. This shows that investors are not in a hurry to take profits.
If the price rises from the current level or bounces back from the moving averages, the bulls will attempt to break the overhead barrier at $0.86. If they are successful, XRP price could rise to $0.91 and then reach the psychological level of $1. The ascending moving averages and the RSI in the positive zone point to an advantage for buyers. This positive view will be rejected in the short term if the bears sink and push the price below the 50-day simple moving average (SMA) ($0.77).
Cardano (ADA)
Cardano (ADA) is trying to start a new uptrend. When the bulls pushed the price above the overhead resistance at $1 on March 23, this was the first indication that the bears could lose control.
The next level to watch on the upside is $1.26 where the bears will try to stop the aid rally. If the price breaks down from the current level or overhead resistance, the bears will try to push the ADA/USDT pair to the critical level at $1. If the price recovers strongly at $1, it indicates that the bulls have turned the level to support. Buyers will then make another attempt to break through the barrier at $1.26. If they are successful, the next stop could be $1.60. This positive view will be invalidated if the price drops below $1.
Terra (LUNA)
Terra (LUNA) bounced back from overhead resistance at $96 once again on March 24, showing that the bears are not willing to give up easily. The price can now slide to the 20-day exponential moving average (EMA) ($89).
If the price bounces back from the 20-day EMA, it indicates that the bulls are defending this level. Buyers will then make one more attempt to break through the overall barrier at $96. If they are successful, the LUNA price could reach the ATH level of $105. Conversely, if the price declines and dips below the 20-day EMA, it will suggest that traders may be booking profits as the price fails to rise above $96. The price could then drop to $82 and near $75.
Solana (SOL)
As we have covered in the cryptokoin.com analysis, Solana (SOL) broke above the 50-day SMA ($93) on March 23 and closed. This move also invalidated the bearish descending triangle pattern. Strong buying by the bulls pushed the price to the immediate resistance at $106.
The moving averages are about to complete the bullish crossover and the RSI is in the positive zone, suggesting the bulls have the upper hand. If buyers push the price above $106, the SOL/USDT pair could rally to $122. Alternatively, if the price drops from the current level but bounces off the 20-day EMA ($91), it will indicate that the sentiment is positive and investors are buying the dips. This will increase the likelihood of a break above the overhead resistance. A break and close below the 20-day EMA would suggest that the pair could consolidate between $81 and $106 for a few more days.
Avalanche (AVAX)
Avalanche (AVAX) is trading between the overhead resistance at $92 and the moving averages. This shows that the bears are selling close to $92 and the bulls are buying bearish towards the moving averages.
If AVAX price rises from the current level or bounces back from the moving averages, the bulls will again attempt to clear the overall hurdle at $92. If they manage to do so, AVAX could gain upside momentum. The bears may try to stop the rally at psychological $100, but if the bulls break this hurdle, the rally could reach $119. This positive view will be invalidated in the short term if the price drops below the moving averages. Such a move would suggest that the pair could remain range-bound between $92 and $65 for a few more days.
Polkadot (DOT)
Polkadot (DOT) continued its upward journey which could reach the overhead resistance at $23. Bears are expected to make a strong defense at this level.
If the price drops from $23 but the bulls do not give up on the ground, this will indicate that the halbers are expecting a move higher. This could increase the likelihood of a break above $23. If it does, the DOT/USDT pair could rally to $28 and then to $30. Conversely, if the price breaks from the current level or overhead resistance and dives below the moving averages, it will indicate that the bears are active at higher levels. This could keep the pair between $23 and $16 for a few more days.
Dogecoin (DOGE)
Dogecoin (DOGE) broke above the 50-day SMA ($0.13) on March 24 but the bulls are struggling to sustain higher levels. This indicates that the bears are not ready to give up their advantage.
The 20-day EMA ($0.12) has started to rise and the RSI is in the positive zone, suggesting the bulls have the upper hand. If the price bounces back from the moving averages, the bulls will try to break the overhead resistance again and push the DOGE/USDT pair towards $0.17. Alternatively, if the price drops and dips below the moving averages, the March 24 breakout could be a bear trap. Sellers will then try to push the pair towards strong support at $0.10.
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