The sharp pullback in the cryptocurrency market shows that the bears have not surrendered yet and investors continue to take profits at the top of each rise. Although DOGE, SOL and AVAX tested these resistors many times, they could not get away from the hands of the sellers. Let’s start with developments across the market. Analysis of popular coins/tokens such as BTC, ETH and LUNA will be our next stops.
Million BTC left Coinbase
Bitcoin (BTC) has been volatile for the past few days, but long-term investors are assessing the current weakness to buy. According to Whale Alert and CryptoQuant, around 30,000 BTC left Coinbase and deposited into an unknown wallet. It is estimated that this is not an in-house transaction, but an actual purchase. While investors are in an uptrend in the long-term, the short-term picture remains dubious. In its latest weekly research report, Stack Funds said they expect “sideways trade and possibly a potential decline” in the short-term due to the rise in inflation and the lack of clarity on the conflict in Ukraine.
Although Bitcoin has been volatile, gold-backed cryptocurrencies have performed strongly in 2022 as investors avoid risky assets and seek protection of safe havens. This put the market cap of gold-backed cryptocurrencies above $1 billion. Can the bitcoin and altcoin market sustain the recovery or will the bears prevail? To answer, let’s continue with the technical analysis of analyst Rakesh Upadhyay.
BTC, ETH, BNB, XRP and DOGE analysis
Bitcoin (BTC)
Bitcoin broke above the moving averages on March 9, but the rally on March 10 He quickly repaid his gains. The bulls are trying to push the price above the moving averages again on March 11. This shows that the bulls buy on the lows, while the bears sell on the rallies.
Both moving averages (MA) are flattening and the relative strength index (RSI) is just below the midpoint, indicating an equilibrium between supply and demand. If this balance propels and sustains the price above $42,594, buyers could turn in their favor. The analyst shares a scenario for the continuation:
The BTC/USDT pair could then rally higher into a higher zone between $45,000 and the resistance line of the ascending channel. Alternatively, if the price drops from the moving averages once again, the bears will attempt to push the pair below the critical support at $37,000. If this level gives way, the pair may challenge the support line of the channel. A break and close below this level will increase the likelihood of a downtrend resumption.
Ethereum (ETH)
Ethereum (ETH) recovery faced stiff resistance at the 50-day simple moving average (SMA) ($2.751) on March 9, making it easy for the bears to give up their advantage. It shows that he is not willing. The price fell from the moving averages on March 10, but a minor positive is the bulls attempting to defend the support line of the symmetrical triangle.
If the price bounces back from the support line, the bulls will try to push and sustain the price above the 50-day SMA again. If they do, the ETH/USDT pair could rise to the psychological level at $3,000 and then retest the resistance line of the triangle. This is an important level to be defended for the bears as a break and close above it will signal a potential change in trend. This setup has a formation target of $4,311 on the upside. Contrary to this assumption, if the price continues to decline and reaches below the support line of the triangle, it could indicate a resumption of the downtrend. The bears will then target the $2,159 region.
BNB (BNB)
Binance exchange’s native crypto BNB rose above the 50-day SMA ($389) on March 9 but the bulls failed to sustain higher levels. The bears took advantage of this situation to push the price below the moving averages on March 10.
If price stays below the moving averages, the bears will attempt to pull the BNB/USDT pair to strong support at $350. This is an important level to consider because a break below it could open the way for a drop to $320. Alternatively, if the price rises above the current level, buyers will try to push and sustain the pair above the moving averages again. If they do, the price could start an upside walk towards $445.
Ripple (XRP)
Ripple (XRP) broke and closed above the downtrend line on March 9 but the bulls failed to develop this strength. The bears pulled the price below the downtrend line on March 10.
The bulls did not let the price drop below the 50-day SMA ($0.72), indicating strong demand at the lower levels. This narrow range of trading is not expected to continue for long. If the price breaks and stays above $0.78, the XRP/USDT pair could gain momentum and rise towards the overhead resistance at $0.91. A break above this level could clear the way for a rally from $1 to the psychological level. This positive view will be invalidated if the price declines and dips below $0.69. This could turn the situation in favor of the bears.
Dogecoin (DOGE)
Dogecoin’s (DOGE) rally on March 9 failed at the 20-day EMA ($0.12). This shows that the bears are not ready to give up and continue to sell close to the resistance levels.
DOGE/USDT pair dropped below $0.12 on March 10, raising the possibility of a retest of critical support at $0.10. This area is likely to attract strong buying from the bulls. DOGE buyers will have to push and sustain the price above the 50-day SMA ($0.13) to indicate that the downtrend may weaken. Conversely, if the bears sink the price below $0.10, selling for DOGE could accelerate and the pair could drop to the next support at $0.06.
SOL, AVAX, DOT and LUNA analysis
Solana (SOL)
Solana (SOL) in a descending triangle formation that will complete with a break and close below critical support at $81 is being traded. The bulls tried to recover on March 9 but failed to push the price above the 20-day EMA ($89).
If the bears lose three and keep the price below $81, selling could intensify. The SOL/USDT pair can then resume the downtrend and drop to the next support at $66. The downward sloping moving averages indicate that the path of least resistance is to the downside, but the positive divergence in the RSI indicates that the sellers should be on the lookout for a possible bear trap. If the price bounces back from the current level, the bulls will again try to push and sustain the pair above the downtrend line. If they do, the next target for the pair is $122.
Cardano (ADA)
Cardano (ADA) attempt to recover on March 9 faced strong resistance at the 20-day EMA ($0.88). This indicates that the sentiment is negative and traders are selling on every minor rally.
The downward sloping moving averages and the RSI in the negative territory suggest the path of least resistance is to the downside. The bears will now again try to push the price below the strong support at $0.74 and resume the downtrend. A close below $0.74 could open the doors for more declines to the next support at $0.68. The bulls will need to push and sustain the ADA/USDT pair above the psychological level at $1 to suggest that the bears may lose control.
Avalanche (AVAX)
As we have seen in the analysis of Kriptokoin.com, Avalanche (AVAX) could not go above the moving averages on March 9 and failed to stay above it.
Generally, narrow gaps result in sharp trend moves. If the bears lose strength and sustain the price below the bullish line, the AVAX/USDT pair could start a decline towards the key support at $51. It may not be a straight drop as the bulls will try to stop the drop in the region between $64 and $61. Conversely, if the bulls push the price above the moving averages, the pair will again attempt to break above the downtrend line of the descending channel. A break and close above the channel could signal that the downtrend may be coming to an end.
Pokadot (DOT)
After struggling to stay above the 20-day EMA ($17) on March 9 and 10, Polkadot (DOT) managed to break through resistance on March 11. The bulls are currently trying to hold and sustain the price above the 50-day SMA ($18).
If they are successful, it will suggest that the downtrend may come to an end. The DOT price could then rise towards the overhead resistance at $23. A break and close above this resistance will signal a potential change in trend. Contrary to this assumption, if the price drops from the current level, the bears will try to push the price below the solid support at $16. If they do, the pair could retest the next major support at $14.
Terra (LUNA)
Terra (LUNA) hit an all-time high on March 9 but the long wick on the day’s candlestick indicates profit booking at higher levels. The bulls tried to resume the uptrend again on March 10, but the bears had other plans.
Failing to keep the price above $103 may have triggered short-term investors to take profits. This dragged the LUNA/USDT pair below the critical level at $94. If the price stays below $94, the drop could extend to the 20-day EMA ($80). A break and close below this level suggests that the bullish momentum may have weakened. The pair could drop to $70 later. Conversely, if the price bounces back from the current level or the 20-day EMA, it will indicate continued sentiment and traders buying on the dips. The bulls will then try to push the pair back towards the all-time high and the $125 pattern target.
37691
