Most members of the cryptocurrency market have risen above critical resistance levels. Let’s look at the analysis of XRP, DOGE, SOL, BTC and 6 altcoin projects for the critical technical levels of the coming days.
What happened in the cryptocurrency market?
Bitcoin (BTC) and Ethereum (ETH) are trying to build on their recent recovery as US stock markets try to continue their relief rally supported by Amazon’s strong results. John Bollinger, the inventor of Bollinger Bands, recently tweeted that Ethereum appears to be in a good spot to add to existing longs. According to Glassnode data, the Purpose Bitcoin exchange-traded fund (ETF) also witnessed its third largest inflow on Feb. This indicates that investors may have started accumulating Bitcoin at lower levels.
Although the crypto markets are in a bearish period, investor interest remains strong. Popular social media platform Stocktwits has announced that it has partnered with FTX.US to launch crypto transactions next quarter. The platform has five million monthly active users. This may result in a few new investors starting their crypto investment journey. Does the strong movement in Bitcoin and selected altcoin projects indicate the start of a new uptrend? Let’s take a look at analyst Rakesh Upadhyay’s technical analysis to find out.
XRP, DOGE, SOL, BTC technical analysis
Bitcoin bounced off the $36,155.01 support level and the bulls pushed the price above the overhead resistance zone between the 20-day exponential moving average (EMA) ($38,974) and $39,600.
If the price stays above $39,600, buying could gain momentum and the BTC/USDT pair could rise above the 50-day SMA ($43,021). The bulls have to break through this hurdle to signal a possible change in trend. Contrary to this assumption, if the price drops below the current level, it will signal that the bears will continue to sell in the rallies. A break and close below $36,155.01 could clear the way for a retest of the 24 January intraday low of $32,917.17.
Ethereum (ETH)
Ethereum bounced back from the 20-day EMA ($2,795) on February 2 and dropped below the $2,652 support on February 3, but the long wick on the day’s candlestick indicates aggressive buying at lower levels.
The 20-day EMA has flattened out and the RSI is just above the midpoint, suggesting that the bears are losing strength. Continuous buying by the bulls pushed the ETH/USDT pair above the 20-day EMA. If the bulls sustain the price above the 20-day EMA, the pair could rally to the resistance line of the channel. A break above the 50-day SMA ($3,291) will indicate that the bulls are at the wheel. This bullish view will be invalidated if the price declines from the current level and drops below $2,550. This could open the doors for a drop to the support line of the channel.
Binance Coin (BNB)
Binance Coin (BNB) rebounded from minor support at $357.40, indicating bulls are buying lower.
If the BNB/USDT pair can stay above $401, it could start an upside walk towards the resistance line of the descending channel. A break and close above this resistance will signal a possible trend reversal. Conversely, if the price drops from the 20-day EMA, it indicates that the sentiment remains negative and investors are selling on rallies. The bears will then try to push the pair below $357.4 and challenge the strong support zone between $330 and $320.
Cardano (ADA)
Cardano (ADA) has been trading between the critical support $1 and the 20-day EMA ($1.12) for the past few days.
A breakout and close above the 20-day EMA will be the first sign of buyers starting a showdown. The ADA/USDT pair could then rise to the resistance line of the descending channel where the bears could pose a tough challenge. If the bulls break this hurdle, the pair could signal a trend change. Contrary to this assumption, if the price drops below the moving averages, it will indicate that investors are selling on rallies. The bears will then try to push the pair below $1. If they manage to do so, the drop could deepen to $0.80.
Left (LEFT)
Solana (SOL) bounced back from the 20-day EMA ($110) on Feb. 2, but the long wick on the Feb. 3 candlestick suggests buying lower. The bulls will try to push the price back above the breakout level at $116.
If they are successful, the SOL/USDT pair may rise to the resistance line of the descending channel. A break and close above the channel will signal a possible change in trend. Alternatively, if the price drops below the resistance line, the pair could continue trading inside the descending channel. On the downside, $80.83 is critical support to watch out for because if it breaks, selling could intensify further and the pair could drop to the support line of the channel.
Ripple (XRP)
Ripple (XRP) continues to fluctuate between $0.54 and $0.65. If the price rises above $0.65, it would suggest that range-bound action could be an accumulation by the bulls.
XRP/USDT pair could then move towards the 50-day SMA ($0.76), where the bears could form stiff resistance. A break and close above this resistance will be the first sign of a possible change in trend. Conversely, if the price drops from $0.65, range-bound trading could continue for a few more days. The bears will have to push the price below the support at $0.54 to signal the resumption of the downtrend. According to the analyst, the pair may later retest the psychological support at $0.50.
Terra (Luna)
Terra (LUNA) is trading between $40 and $60. The 20-day EMA ($59) is sloping down and the RSI is in the negative territory, suggesting that the bears have a slight advantage.
The range-bound move could continue for a few more days if the price drops from the overhead resistance to $54.20. A break and close below the support at $43.44 could indicate a resumption of the downtrend. The LUNA/USDT pair could later decline to the critical support at $37.50. Alternatively, if the bulls push the price above $54.20, the pair could rally to the 20-day EMA, where the bears may face stiff resistance. The bulls have to break through this hurdle to indicate a possible change in the short-term trend. The pair could then rise to the downtrend line of the channel.
Dogecoin (DOGE)
Dogecoin (DOGE) continues its unlisted price action in the $0.13 to $0.15 range. This indicates that both bulls and bears are not betting big and taking safe risks.
On the technical side, the DOGE is down, the moving averages are falling and the RSI is in the negative territory, indicating that the bears have a slight advantage. If the price drops from the 20-day EMA ($0.14), the bears will try to continue the downtrend by pulling the DOGE/USDT pair below $0.13. If successful, the pair could decline towards psychological support at $0.1. The bulls will need to push and sustain the price above the 50-day SMA ($0.16) to show that the bears have lost control. The pair could rally to $0.19 later.
Polkadot (DOT)
Polkadot (DOT) is trading between the 20-day EMA ($20.47) and strong support at $16.81. The weak recovery of strong support and the failure to break above the 20-day EMA indicate that the bulls are not buying aggressively.
Although the RSI is slightly higher, it is still in negative territory. The moving averages also continue to slide down, suggesting bears dominate. This indicates that the bears may again try to strongly defend the 20-day EMA. If the price breaks down from the overhead resistance, the bears will try to push the DOT/USDT pair below $16.81. If they succeed, the downtrend could continue. This negative view will be invalidated in the short term if the bulls push the price above the 20-day EMA. In this case, the pair could rally to the 50-day SMA ($24.34).
Avalanche (AVAX)
Avalanche (AVAX) fell from the 20-day EMA ($73.58) on Feb. 2, but it is a positive sign that the bulls are holding the support on the bullish line. This shows that sentiment is improving and traders are buying on small dips.
The bulls will now try to push the price above the breakout level at $75.50, where the bears may face stiff resistance again. If the bulls break this hurdle, the AVAX/USDT pair can start its journey towards the downtrend line. Contrary to this assumption, if the price drops from $75.50, it will indicate that the bears continue to sell in the rallies. This could squeeze the pair between $75.50 and the bullish line. A break below the bullish line could open the doors for a decline to $60 and later to $51.04.
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