Price analysis 9/3: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, LINK

This week’s sharp rally in Bitcoin and Ether signals that bulls are back in control and altcoins are likely to follow.

Bitcoin (BTC) finally broke above the $50,500 resistance and Ether (ETH) has risen above the $4,000 mark. This suggests that there is growing interest in cryptocurrencies and several legacy finance companies are initiating steps to tap into this increasing demand.

One of the world’s largest independent asset managers, Franklin Templeton, has posted fresh job applications for medium to senior-level positions in crypto trading and research, according to Linkedin job postings.

Meanwhile, in Japan, financial conglomerate SBI Holdings is planning to set up one of the first crypto funds in the country by the end of November. Tomoya Asakura, the director and senior managing executive officer at SBI, said that the launch of a second fund will be explored depending on the success of the first one.

Daily cryptocurrency market performance. Source: Coin360

While crypto traders are cheering the recent run-up in several altcoins, JPMorgan analysts have warned their clients that the altcoin rally and nonfungible tokens (NFT) are getting frothy.

The analysts said that the altcoins share of the crypto market trading surged from 22% at the beginning of August, to 33%, which is high compared to historical standards. They believe the reason is “froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.”

Could Bitcoin sustain above $50,500 and resume its uptrend or will altcoins remain in focus? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bears successfully defended the $50,500 resistance on Sep. 2 but they could not pull and sustain the price back below the downtrend line. This could have attracted buying from the bulls who have pushed Bitcoin above $50,500 today.

BTC/USDT daily chart. Source: TradingView

If buyers sustain the price above $50,500, the BTC/USDT pair could rally to $60,000. This level may again act as a stiff resistance but if bulls can thrust the price above it, the pair could challenge the all-time high at $64,854.

If bulls drive the relative strength index (RSI) above the downtrend line, it will invalidate the negative divergence. That along with the upsloping 20-day exponential moving average ($47,584) indicate that the path of least resistance is to the upside.

This bullish view will invalidate if the price turns down from the current level and breaks below the 200-day simple moving average ($46,083). That could pull the price down to $42,451.67.

ETH/USDT

Ether picked up momentum after breaking above $3,377.89 and hit the $4,000 mark today. If bulls sustain the price above this psychological level, the biggest altcoin could challenge the all-time high at $4,372.72.

ETH/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($3,344) and the RSI in the overbought zone suggest that bulls are in control. If buyers push the price above $4,372.72, the ETH/USDT pair could start its journey toward the critical level at $5,000.

This may not be easy as bears are likely to have other plans. They are likely to mount a stiff resistance in the $4,000 to $4,372.72 zone. If the price turns down from this zone and breaks below $3,700, the pair may drop to the 20-day EMA.

A strong rebound off this support will suggest that the sentiment remains bullish. The buyers will then try to resume the up-move. Conversely, a break and close below the 20-day EMA will be the first sign that bulls may be losing their grip.

ADA/USDT

Cardano (ADA) broke above the $3 mark on Sep. 2 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. Although the price dipped back below $2.97 today, the bulls bought the dip and are again trying to drive the price above $3.

ADA/USDT daily chart. Source: TradingView

A breakout and close above $3.10 will signal the resumption of the uptrend. The ADA/USDT pair could then rally to $3.50. The 20-day EMA ($2.58) favors the bulls but the negative divergence on the RSI indicates that the bullish momentum may be weakening.

If bulls fail to drive the price above the overhead resistance, the pair may drop to the 20-day EMA. This is an important level for the bulls to defend. A strong rebound off it will suggest that the sentiment remains positive.

Conversely, a break below the 20-day EMA may pull the price to the breakout level at $2.47. A break below this support could start a deeper correction.

BNB/USDT

Binance Coin (BNB) has been trading between the 20-day EMA ($456) and the overhead resistance at $518.90. The long wick on the Sep. 2 candlestick suggests that bears are selling above $500 but the positive sign is that bulls are not giving up much ground.

BNB/USDT daily chart. Source: TradingView

The buyers will again try to push and sustain the price above $518.90. If they manage to do that, the BNB/USDT pair could pick up momentum and rally to $600. This psychological level may act as a resistance but if bulls clear this hurdle, the rally may extend to $680.

Conversely, if the price turns down from the overhead resistance and dips below the 20-day EMA, the pair may slide to $433. A break below this level will suggest that bears have overpowered the bulls. The pair may then decline to the 200-day SMA ($375).

XRP/USDT

The bulls pushed XRP above the downtrend line on Sep. 2, invalidating the developing bearish descending triangle pattern. The bears tried to pull and sustain the price below the downtrend line today but failed.

XRP/USDT daily chart. Source: TradingView

If bulls sustain the price above the downtrend line, the XRP/USDT pair could rally to $1.35. This level may act as a resistance and if the price turns down from it, the pair may trade between $1.05 and $1.35 for a few days.

The 20-day EMA ($1.15) has turned up and the RSI has risen above 64, indicating that bulls have the upper hand. A breakout and close above $1.35 could clear the path for a rally to $1.66. The bears will have to pull the price below $1.05 to signal a comeback.

SOL/USDT

The bears attempted to stall Solana’s (SOL) uptrend at $130 but the bulls were in no mood to relent. The buyers did not allow the price to break below the psychological support at $100.

SOL/USDT daily chart. Source: TradingView

Buying resumed on Sep. 2 and the bulls have extended the SOL/USDT pair to a new all-time high today. Vertical rallies are rarely sustainable and they usually result in sharp declines. The RSI above 88 also indicates the pair is overextended in the short term.

If the price turns down from the current level or $150, the first support is at the 38.2% Fibonacci retracement level at $115.75.

A strong rebound off this level will suggest strength and increase the possibility of a break above $150. The next target on the upside is $166.97. On the contrary, a break below $115.75 could pull the price down to the 50% retracement level at $106.29.

DOGE/USDT

Dogecoin (DOGE) broke above the 20-day EMA ($0.28) on Sept. 1 and bulls pushed the price above the downtrend line of the falling wedge pattern on Sept. 2. However, the long wick on the day’s candlestick showed that bears were selling at higher levels.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USDT pair has bounced off the 20-day EMA and the bulls have pushed the price above the wedge. If buyers sustain the price above $0.31, the pair could rally to $0.35. This level is likely to act as a strong resistance.

If the price turns down from $0.35, the pair may again drop to the 20-day EMA. A strong rebound off it will suggest that the sentiment is positive. A breakout and close above $0.35 could clear the path for an up-move to $0.45.

On the other hand, if the price turns down and breaks below the 20-day EMA, the pair may drop to the support line of the wedge.

DOT/USDT

Polkadot (DOT) has been sustaining above the breakout level at $28.60 for the past three days, indicating the start of a new uptrend. The rising moving averages and the RSI in the overbought territory indicate advantage to buyers.

DOT/USDT daily chart. Source: TradingView

If bulls drive the price above $33.84, the DOT/USDT pair could start its northward journey toward $41.40 and then to the pattern target at $46.83.

On the other hand, if the price turns down from the current level, the price may retest the breakout level at $28.60. If bulls flip this level into support, it may act as a launchpad for the next leg of the up-move.

A break and close below the 20-day EMA ($27.12) will be the first sign that the current breakout may have been a bull trap.

Related: How to prepare for the end of the bull run, Part 1: Timing

UNI/USDT

Uniswap’s (UNI) up-move turned down from $31.41 on Sept. 2, suggesting that the bears have not thrown in the towel yet. The price action of the past few days has formed a negative divergence on the RSI, indicating that the bullish momentum may be weakening.

UNI/USDT daily chart. Source: TradingView

If the price rebounds off the 20-day EMA ($27.91), the bulls will make one more attempt to push the UNI/USDT pair above the overhead resistance at $31.41. If they succeed, the pair may start its journey to $37.52 and then to $42.25.

Alternatively, if bears sink the price below the moving averages, the pair may drop to $25 and remain range-bound for a few more days. A break and close below the $25 to $23.45 support zone will signal that bears are back in the game.

LINK/USDT

Chainlink (LINK) had been range-bound between $24 and $30 for the past few days. The bulls pushed the price above the overhead resistance on Sept. 2 but they could not sustain the higher levels.

LINK/USDT daily chart. Source: TradingView

The bulls again bought the dip today and have propelled the price above the overhead resistance. If buyers sustain the price above $30, the LINK/USDT pair could rally to $36 and if that level is crossed, the up-move may reach $43.50, which is the May 19 intraday high.

The 20-day EMA ($26.99) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. Contrary to this assumption, if the price turns down and breaks below $30, it will suggest that the range-bound action may continue for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Price analysis 7/30: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC

Traders expect altcoins to move higher now that Bitcoin price finally pierced the $41,000 resistance.

Bitcoin (BTC) and most major altcoins seem to be faltering near their respective overhead resistance levels. This suggests that some investors are continuing to sell at higher levels.

However, 21st Paradigm co-founder Dylan LeClair said that on-chain data shows “big transfer volumes from over-the-counter (OTC) desks over the last week.” Cointelegraph also recently highlighted a historic 57,000 BTC outflow from exchanges on July 28.

Ecoinometrics also cited on-chain data to show that “whales” and “small fish” accumulated Bitcoin when the price recovered from $29,400 to over $40,800 this week.

Daily cryptocurrency market performance. Source: Coin360

Institutional investors are also not to be left behind in their plans to accumulate more Bitcoin. MicroStrategy, which holds about 105,085 Bitcoin, said in its second-quarter report that the company intends “to deploy additional capital into our digital asset strategy.”

Wealthfront, a popular US-based robo-investment firm $25 billion in assets under management, announced that it would allow its clients to allocate up to 10% of their portfolio into Grayscale’s Bitcoin Trust and the Grayscale Ethereum Trust.

With demand increasing from small investors and high-net-worth individuals, will cryptocurrencies stage a sharper recovery? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin formed a Doji candlestick pattern on July 29, indicating indecision among the bulls and the bears near the $40,000 mark. That uncertainty briefly resolved to the downside and if the price does not hold its recent surge above $40,000 the price could drop to $36,670.

BTC/USDT daily chart. Source: TradingView

The moving averages have completed a bullish crossover and the relative strength index (RSI) is in the positive zone, indicating that bulls have the upper hand. If the price rebounds off $36,670, it will suggest that bulls have flipped this level into support.

The buyers will then again try to push the price above the overhead resistance zone at $41,330 to $42,451.67. This may not be easy because bears will try to defend this zone aggressively.

If the price turns down from the zone, the BTC/USDT pair could remain range-bound between $36,670 and $42,451.67 for a few more days. A breakout and close above $42,451.67 will suggest the start of a new uptrend.

The bears will be back in the driver’s seat if they can sink the price back below the moving averages.

ETH/USDT

Ether (ETH) reached the downtrend line today but the bears are defending the resistance aggressively. The price could now drop to $2,200 where buyers may step in and arrest the correction.

ETH/USDT daily chart. Source: TradingView

The moving averages have completed a bullish crossover and the RSI is in the positive territory, suggesting that bulls have the upper hand. If the price rebounds off the 20-day exponential moving average, the bulls will again try to thrust the price above the downtrend line.

If they succeed, the ETH/USDT pair could rise to $2,600 and then to $3,000. This positive view will invalidate if the price turns down from the current level and breaks below the moving averages. Such a move could sink the price to $2,000 and next to $1,728.74.

BNB/USDT

The bulls pushed Binance Coin (BNB) above the 50-day simple moving average ($310) on July 29 but they could not challenge the overhead resistance at $340. This suggests that buying dries up at higher levels.

BNB/USDT daily chart. Source: TradingView

The bears will now try to take advantage of the lack of demand to pull the price below the 20-day EMA ($305). A break of this support could result in a drop to the trendline and next to the July 20 low at $254.52.

On the contrary, if the price rebounds off the 20-day EMA, it will suggest buying on dips. The bulls will then make one more attempt to clear the overhead resistance at $340. If they pull it off, the BNB/USDT pair could rise to $379 and next to $400.

ADA/USDT

The failure of the bulls to drive Cardano’s (ADA) price above the 50-day SMA ($1.32) indicates that bears are aggressively defending the resistance.

ADA/USDT daily chart. Source: TradingView

If the price breaks below the 20-day EMA ($1.25), short-term traders may close their positions and that could drag the price down to $1.10 and later to $1. A break below $1 could result in long liquidation.

On the other hand, if the price rebounds off the 20-day EMA, the bulls will again try to push the price above the downtrend line. If that happens, the DOT/USDT pair could rise to $1.50 where bears may again mount a stiff resistance.

XRP/USDT

The bulls have failed to push XRP above the $0.75 level for the past two days, which suggests that bears are defending this level aggressively.

XRP/USDT daily chart. Source: TradingView

The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, indicating that bulls have the upper hand. If bulls do not allow the price to break below the 20-day EMA ($0.64), the XRP/USDT pair may rise above $0.75. That will complete a double bottom pattern, clearing the path for a possible rally to $1.07.

This positive view will invalidate if the price turns down and plummets below the moving averages. The bears will then try to pull the price to $0.59 and then to $0.50. Such a move will indicate that the range-bound action may continue for a few more days.

DOGE/USDT

The bears have been defending the $0.21 resistance for the past few days but a minor positive is that bulls have not given up much ground. This suggests that buyers are not closing their positions as they anticipate Dogecoin (DOGE) to move up.

DOGE/USDT daily chart. Source: TradingView

The flat 20-day EMA ($0.20) and the RSI above 45 suggest a balance between supply and demand. This balance will tilt in favor of the bulls if they can push and sustain the price above the 50-day SMA ($0.23). That may clear the path for a rally to $0.28 and then $0.33.

Conversely, if the price turns down from the current level and breaks below $0.18, the DOGE/USDT pair may drop to $0.15. This is an important level for the bulls to defend because if it gives way, the pair may witness panic selling and drop to $0.10.

DOT/USDT

The bulls pushed Polkadot (DOT) above the 20-day EMA ($14.15) on July 27 but they have not been able to clear the hurdle at the 50-day SMA ($16.05). This suggests that demand dries up at higher levels.

DOT/USDT daily chart. Source: TradingView

The price has turned down from the 50-day SMA today and the bears will now try to sink the DOT/USDT pair below the 20-day EMA. If they manage to do that, the pair could drop to $13. A break below this support could sink the pair to $10.37.

Contrary to this assumption, if the price rebounds off the 20-day EMA, the bulls will again attempt to push the price above the overhead resistance at $16.93. If that happens, it will suggest a change in the short-term trend. The pair could then start its journey to $20 and later to $26.50.

UNI/USDT

The bulls are attempting to push Uniswap (UNI) above the downtrend line but the long wick on the day’s candlestick suggests that bears have other plans.

UNI/USDT daily chart. Source: TradingView

If the price turns down from the current level but stays above the 20-day EMA ($18.50), it will indicate that bulls are buying on dips. That will improve the likelihood of a break above the downtrend line, invalidating the descending triangle pattern.

The UNI/USDT pair could then rise to $24 and if this level is crossed, the up-move may reach $30. Conversely, if bears pull the price below the moving averages, the pair may decline to $17.24 and then to the critical support at $13.

Related: Who takes gold in the crypto and blockchain Olympics?

BCH/USDT

Bitcoin Cash (BCH) is facing stiff resistance at $546.83. This suggests that bears are attempting to defend the resistance of the range and extend the consolidation for a few more days.

BCH/USDT daily chart. Source: TradingView

If bears pull the price below the moving averages, the BCH/USDT pair could witness further selling and drop to $441.17. A break below this level will open the doors for a further slide to the critical support at $383.53.

On the other hand, if bulls do not allow the price to drop below the moving averages, it will enhance the prospects of a break above $546.83. If that happens, the double bottom pattern will complete and the BCH/USDT pair could start its journey toward the target objective at $710.13.

LTC/USDT

Although bulls pushed Litecoin (LTC) above the 50-day SMA ($137) on July 28, they could not clear the hurdle at the overhead resistance at $146.54. This indicates that bears have not yet given up.

LTC/USDT daily chart. Source: TradingView

If sellers pull the price below the 20-day EMA ($130), the LTC/USDT pair could start its downward journey to the critical support at $103.83. Such a move will indicate that the pair may remain range-bound for a few more days.

Alternatively, if the price rebounds off the 20-day EMA, the bulls will make one more attempt to push the price above $146.54. If they succeed, the pair will complete a double bottom pattern, which has a target objective at $189.25.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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SEC accuses XRP Army of issuing ‘false statements’ against its leadership on social media

The commission argued that Ripple’s motion, if granted, would open the floodgates for the company to request testimony from high-ranking government officials.

The ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission, or SEC, continues with the regulatory body claiming that XRP token holders are targeting its members on social media platforms with allegedly false statements.

In a Thursday motion addressed to Judge Sarah Netburn in the Southern District of New York, the SEC has requested a conference to discuss quashing the motion from Ripple to subpoena the former director of the regulatory body’s division of corporation finance, William Hinman. The SEC argued that Ripple’s motion, if granted, would set a precedent for the company to be allowed “a parade of requests for the testimony of high-ranking government officials,” and interfere with U.S. government operations.

“Allowing Defendants [Ripple] to depose Director Hinman would likely result in Director Hinman being served with multiple deposition subpoenas by the many other persons alleged to have violated the registration provisions of the securities laws during his tenure at the SEC,” said the motion. “Such a result would not only create significant burdens for Director Hinman, but would make other qualified individuals reluctant to serve in high-ranking roles at the SEC for fear of being embroiled in litigation for years following their terms of service.”

However, one of the SEC’s arguments in the motion against letting Ripple depose Hinman is XRP token proponents — also known as the XRP Army — allegedly using social media “to disseminate negative and false statements about members of SEC leadership,” including the former director. The commission claimed that the deposition coupled with the social media attention could deter individuals from seeking positions in public service.

The SEC filed a lawsuit against Ripple in December, alleging the firm, CEO Brad Garlinghouse and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales. In the aftermath of the commission’s announcement, several crypto exchanges have suspended the trading of XRP or delisted the token entirely. Garlinghouse also said in March that Ripple had agreed to “wind down” its partnership with global money transfer service MoneyGram.

Related: US isn’t prepared to regulate new industries like crypto, says Ripple CTO

In response to the SEC lawsuit, Ripple has claimed that XRP is more like Bitcoin (BTC) or Ether (ETH), both of which the regulatory body has classified as commodities rather than securities. Members of the XRP Army have also seemingly focused much of their online activity around the SEC case with Ripple, specifically mentioning Hinman.

Some of the ideas on social media pushed by XRP token holders about the SEC leadership include that members of the commission are working to make China’s economy greater than that of the United States, requests that former chairperson Jay Clayton and Hinman be investigated, and the occasional comparison of one or more members to lizard people:

XRP Army members have also started an online campaign to get exchanges to relist the token amid the SEC lawsuit. In April, the price of XRP reached a yearly high of $1.78 and stayed above the $1.00 level for a month. At the time of publication, XRP is $0.63, having fallen more than 35% in the last 30 days.

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Top 5 cryptocurrencies to watch this week: BTC, XRP, DOT, XLM, SOL

Bitcoin price remains under pressure but select altcoins like XRP, DOT, XLM and SOL are showing signs of resuming their uptrend.

Bitcoin (BTC) has been struggling to rise above the $50,000 mark, which could have resulted in traders dumping their Bitcoin positions to invest in altcoins. Glassnode data suggests that whale addresses owning more than 1,000 BTC have reduced from about 2,500 in February to 2,100.

If large investors continue to sell, Bitcoin could witness a sharp correction until institutional investors step in and buy at lower levels. While MicroStrategy announced the purchase of 271 Bitcoin on May 13, other existing institutional investors appear to be adopting a wait and watch approach.

Crypto market data daily view. Source: Coin360

In an interview with Financial NewsSquare, Square chief financial officer Amrita Ahuja said, at this point, the firm does not have any plans to add Bitcoin to its existing haul of roughly 8,027 Bitcoin purchased in October 2020 and February of this year.

If other institutions also stay away from buying at current levels, Bitcoin’s price is likely to slide further. However, Fundstrat Global Advisors managing partner Tom Lee believes Bitcoin’s rally still has legs. Lee has increased his year-end Bitcoin target from $100,000 to $125,000.

With action becoming coin specific, let’s look at the top-5 cryptocurrencies that may lead the charge in the next few days.

BTC/USDT

The bulls again purchased the dip to the neckline of the head and shoulders pattern today but the long wick on the candlestick suggests profit-booking at higher levels. Bitcoin’s sentiment seems to have changed from buy on dips to sell on rallies.

BTC/USDT daily chart. Source: TradingView

If the bears sink and sustain the price below the neckline, the H&S pattern will complete. This setup has a target objective at $31,653.73. The downsloping 20-day exponential moving average ($53,297) and the relative strength index (RSI) below 36 indicate the bears are in control.

However, the bulls are unlikely to give up easily. They will try to stall the decline in the $43,000 to $40,000 support zone but if they fail, the decline could be sharp.

Contrary to this assumption, if the price turns up from the current level and rises above $51,550, the BTC/USDT pair may rally to the 20-day EMA. A breakout and close above the $60,000 resistance will suggest the bulls are back in the game.

BTC/USDT 4-hour chart. Source: TradingView

The rebound from $46,435.02 fizzled out at the 20-EMA. This suggests the sentiment is negative and traders are selling on rallies to the 20-EMA. If the bears sink the price below the neckline, the selling could intensify.

However, if the bulls again defend the neckline, the pair may attempt to rise above the 20-EMA. If that happens, the rally could extend to $51,538.22 where the bulls are likely to encounter stiff resistance.

If the price turns down from this resistance, the pair may consolidate between $46,000 and $51,500 for a few days.

XRP/USDT

XRP is currently trading inside a symmetrical triangle, which usually acts as a continuation pattern. If the bulls can drive the price above the resistance line of the triangle, the altcoin could retest the 52-week high at $1.96.

XRP/USDT daily chart. Source: TradingView

A breakout and close above $1.96 could start the next leg of the uptrend that may reach $2.68. The RSI has risen into the positive territory but the 20-day EMA ($1.43) is yet to turn up, which suggests that bears are likely to defend the resistance line aggressively.

If the price turns down from the resistance line, the XRP/USDT pair could extend its stay inside the range for a few more days. The pair could turn negative if the bears sink and sustain the price below the triangle. Such a move may pull the price down to $0.88.

XRP/USDT 4-hour chart. Source: TradingView

The price has dipped to the moving averages on the 4-hour chart. If the pair rebounds off the current levels with strength, it will suggest buying on dips. The bulls will then try to push the price above the triangle.

Alternatively, if the bears sink and sustain the price below the moving averages, the pair could drop to $1.35 and then to the support line of the triangle. A break below this support could signal advantage to the bears.

DOT/USDT

Polkadot (DOT) broke out and closed above the overhead resistance at $44 on May 14. The bulls continued the momentum and pushed the price to a new all-time high at $49.78 on May 15 but could not sustain the higher levels. Profit-booking has pulled the price back below the breakout level at $44.

DOT/USDT daily chart. Source: TradingView

If the bulls do not give up much ground from the current levels, it will suggest buying on dips. The DOT/USDT pair could then make one more attempt to rise above the psychological level at $50.

If that happens, the pair could start the next leg of the uptrend that may reach $63.68. The marginally upsloping 20-day EMA ($39.54) and the RSI in the positive territory suggest the path of least resistance is to the upside.

Contrary to this assumption, if the price sustains below $44, the pair could drop to the moving averages. A break below this support could pull the price down to $32.50.

DOT/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bears pulled the price below the 20-EMA but the bulls are attempting to reclaim the support. The buyers will have to push the price above $47 to regain the advantage. If they succeed, a retest of $50 is likely.

On the other hand, if the price fails to climb above the 20-EMA, it will suggest a lack of buying support. That could pull the price down to the 50-simple moving average. The flattening 20-EMA and the RSI near 50 suggest a balance between supply and demand.

XLM/USDT

Stellar Lumens (XLM) is attempting to start a new uptrend. The bulls purchased the dip to the 20-day EMA ($0.61) on May 13 and pushed the price to a new 52-week high at $0.79 today. However, the long wick on the day’s candlestick indicates profit-booking at higher levels.

XLM/USDT daily chart. Source: TradingView

If buyers can sustain the price above $0.73, the XLM/USDT pair could rally to $0.85 and then to $1. The upsloping moving averages and the RSI above 63 indicate that bulls have the upper hand.

Contrary to this assumption, if the price sustains below $0.73, the pair could drop to the 20-day EMA. A strong rebound off this support will suggest the sentiment remains positive. The bulls will then make one more attempt to resume the uptrend.

This positive view will invalidate if the price breaks below the 20-day EMA. Such a move will suggest that traders are closing their positions in a hurry and not buying the dips. That could result in a drop to the 50-day SMA ($0.53).

XLM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an inverse head and shoulders pattern. This bullish setup has a target objective at $0.90. The upsloping 20-EMA and the RSI in the positive territory suggest that bulls are in command.

During strong uptrends, corrections are likely to be shallow. Therefore, the current dip may find support at $0.72. A strong bounce off this level could increase the possibility of the resumption of the uptrend.

This bullish view will invalidate if the price dips and closes below the neckline. Such a move could trap the bulls, resulting in long liquidation. The pair may then decline to $0.55.

SOL/USDT

Solana (SOL) had been range-bound between $40 and $49.99 for the past few days. A tight consolidation near the high is a positive sign as it shows that traders are not booking profits in a hurry.

SOL/USDT daily chart. Source: TradingView

The 20-day EMA ($42.86) is sloping up and the RSI has risen above 65, indicating the path of least resistance is to the upside.

If the bulls can sustain the price above the psychological level at $50, the SOL/USDT pair may resume its uptrend. The next target objective on the upside is $60 and then $69.

On the contrary, if the price fails to sustain above $50, the pair may re-enter the range and extend its consolidation for a few more days. This positive view will invalidate if the pair breaks below $40.

SOL/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls pushed the price to a new all-time high at $52.60 today but the long wick on the candlestick indicates profit-booking at higher levels. The price has dipped back below $50 but it may find strong support at $46.

A strong rebound off this level will suggest that traders are buying on dips. The bulls will then again try to resume the uptrend. The rising 20-EMA and the RSI near the overbought zone suggest advantage to the bulls.

Contrary to this assumption, if the bears sink the price below $46, the pair may drop to the 20-EMA. Such a move will suggest aggressive selling above $50 and that could keep the pair range-bound for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Price analysis 4/16: BTC, ETH, BNB, XRP, DOGE, ADA, DOT, LTC, UNI, LINK

Bitcoin’s weakness and Dogecoin’s epic pump are signals that the market could be overheating and in need of a short-term correction.

Dogecoin’s (DOGE) massive rally to $0.45 propelled it to a market capitalization of over $54 billion to make it the fifth most valuable cryptocurrency by market cap.

This lofty market cap comes as a surprise to many since the project has no active developers and is only a meme coin, thus the current rally brings back memories of the excesses seen during the ICO boom in 2017.

Rallies like the one seen in Dogecoin indicate that several traders have entered the fray and are looking to get rich overnight. The only positive sign is that the mania has not spread to other coins. If it does, then the crypto markets are likely to witness a sharp correction in order to shake out the weak hands.

CNBC host Jim Cramer has become one of the first well-known people to reveal that he closed half of his Bitcoin (BTC) position. While Cramer’s selling is an isolated event, it does warn that not all professional investors who have recently turned Bitcoin believers are going to be long-term HODLers.

Daily cryptocurrency market performance. Source: Coin360

If the institutional investors rush to the exit, it could cause a huge correction in several cryptocurrencies. Traders should be mindful of irrational exuberance and avoid being sucked into FOMO-driven trades as it’s better to stick to a trading plan and think long-term rather than dream of overnight riches.

Let’s study the charts of the top-10 cryptocurrencies to identify the critical support levels and outline various bullish and bearish scenarios.

BTC/USDT

The bulls could not capitalize and build upon the breakout of the overhead resistance zone at $60,000 to $61,825.84 on April 13. Bitcoin price turned down on April 14 after hitting an all-time high at $64,849.27 and the bulls are currently attempting to flip the $60,000 level to support.

BTC/USDT daily chart. Source: TradingView

If they manage to do that, the BTC/USDT pair may make one more attempt to resume the uptrend. A breakout of $64,849.27, could start the next leg of the uptrend that could reach $69,540 and then $79,566.

However, the negative divergence on the relative strength index (RSI) is warning of a possible correction. Interestingly, the price reversed direction when the RSI had reached close to the downtrend line.

If the price dips below the 20-day exponential moving average ($59,427), it will be the first sign that buyers may be losing their grip. The break below the 50-day simple moving average ($55,814) will further cement the view that a deeper correction is likely.

The bulls may attempt to arrest the decline near $50,460.02 but if this level cracks, the pair could drop to the critical support at $43,006.77.

ETH/USDT

Ether (ETH) extended its uptrend and hit an all-time high at $2,545.80 today. Profit-booking by traders pulled the price down to $2,300 but the long tail on the day’s candlestick suggests that bulls continue to buy on dips.

ETH/USDT daily chart. Source: TradingView

If the price recovers and the bulls push the price above $2,545.8, the ETH/USDT pair could start the next leg of the uptrend. The next target objective on the upside is $2,745 and then the psychological level at $3,000.

The upsloping 20-day EMA ($2,131) and the RSI near the overbought territory suggest the path of least resistance is to the upside. This bullish view will be invalidated if the price turns down and breaks below the 20-day EMA. Such a move could pull the price down to $1,925.10.

BNB/USDT

Binance Coin (BNB) formed a Doji candlestick pattern on April 14 and that was followed by an inside day candlestick pattern on April 15. Both these setups indicate indecision among the bulls and the bears. This uncertainty resolved to the downside today.

BNB/USDT daily chart. Source: TradingView

However, a minor positive is that the bulls are defending the 38.2% Fibonacci retracement level at $483.95, as seen from the long tail on the day’s candlestick. The bulls will now try to push the BNB/USDT pair above the all-time high at $638.56 and resume the uptrend.

Conversely, a break below $483.95 could pull the price down to the 20-day EMA ($437). A break below this support will suggest that the traders are rushing to the exit and that could result in a drop to the breakout level at $348.69.

XRP/USDT

XRP is currently correcting the sharp rally. The bulls are attempting to defend the first support at the 38.2% Fibonacci retracement level at $1.48, as seen from the long tail on the day’s candlestick.

XRP/USDT daily chart. Source: TradingView

The XRP/USDT pair may now consolidate between $1.48 and $1.96 for a few days before starting the next trending move.

A break above $1.96 could start the next leg of the uptrend that could reach $2.54. The rising moving averages and the RSI in the overbought zone suggest the bulls have the upper hand.

Contrary to this positive assumption, if the bears sink the price below the $1.48 support, the pair could drop to the 20-day EMA ($1.18). Such a move will suggest the bullish momentum has weakened and that could delay the next leg of the uptrend.

DOGE/USDT

Dogecoin’s momentum has been picking up since the past three days and that has resulted in the massive pump today. This shows that more and more traders are getting sucked into the trade due to FOMO.

DOGE/USDT daily chart. Source: TradingView

Usually, such buying frenzies end in a major top formation. After the last bull has purchased, the price reverses direction and the waterfall decline starts. It is difficult to predict a top during such a frenzy but the psychological $0.50 level may act as a hurdle.

The decline after the DOGE/USDT pair tops out is likely to be vicious. The usual 38.2% Fibonacci retracement level may not hold and the pair is likely to drop to the 61.8% Fibonacci retracement level at $0.20.

Traders should control the urge to get into such trades even at the risk of missing out on some profits.

ADA/USDT

Cardano (ADA) has been facing a tough battle between the bull and the bears near $1.48 for the past two days. Although the bulls managed to push the price above $1.48 today, the bears have been quick to pull the price back below the level.

ADA/USDT daily chart. Source: TradingView

After the third unsuccessful attempt to sustain the price above $1.48, the bulls seem to have dumped their positions today, resulting in the formation of an outside day candlestick pattern.

However, the long tail on today’s candlestick suggests the bulls bought the dips to the 20-day EMA ($1.28) aggressively. The bulls may now make one more attempt to drive the price above the $1.48 to $1.55 resistance zone.

If they manage to do that, the ADA/USDT pair could resume the uptrend and start the journey toward $2. Conversely, a break below the moving averages could offer the bears an opportunity to sink the price to $1.03.

DOT/USDT

The bulls pushed Polkadot (DOT) above the $42.28 level on April 13 but could not challenge the all-time high at $46.80. This shows a lack of demand at higher levels. The altcoin has dropped below $42.28 today and the bears will now try to sink the price below the 20-day EMA ($40).

DOT/USDT daily chart. Source: TradingView

If they succeed, the selling could pick up further as the bulls may rush to cover their positions. Such a move could sink the DOT/USDT pair to $32.50 and then to the critical support at $26.50.

Contrary to this assumption, if the price again rebounds off the 20-day EMA, it will suggest that bulls have not given up. They will make one more attempt to thrust the price above the $46.80 resistance and resume the uptrend.

LTC/USDT

Litecoin (LTC) is in a strong uptrend. The bears had tried to start a correction today but the bulls purchased the dips aggressively as seen from the long tail on the day’s candlestick. The reversal may have caught several aggressive bears on the wrong foot, which could be the reason for the pick-up in momentum.

LTC/USDT daily chart. Source: TradingView

The LTC/USDT pair has broken out of the target objective at $307.42, clearing the path for a rally to $374. However, the RSI above 76 signals caution because, in the past, the pair has repeatedly entered a correction when the RSI level reaches close to 80.

The critical support to watch on the downside is the 20-day EMA ($241). A break below this support will be the first sign that the bulls are tiring and a deeper correction is likely.

UNI/USDT

Uniswap (UNI) broke out to a new all-time high on April 15 but the bulls are struggling to sustain the higher levels. When the price fails to follow up higher after breaking out of a significant resistance, it indicates exhaustion.

UNI/USDT daily chart. Source: TradingView

However, the long tail on the day’s candlestick suggests the bulls continue to buy on dips. If the buyers can propel the price above the all-time high at $39.60, the UNI/USDT pair could rally to $43.43 and then $50.

On the other hand, if the price again turns down and breaks below the 20-day EMA ($32), several aggressive bulls who had purchased the breakout of $35.20 may bail out of their positions. The long liquidation could pull the price down to $27.97.

LINK/USDT

Chainlink (LINK) surged above the $36.93 overhead resistance on April 14, signaling the resumption of the uptrend. The altcoin hit an all-time high at $44.33 where profit-booking set in.

LINK/USDT daily chart. Source: TradingView

However, the long tail on the day’s candlestick suggests that the bulls aggressively purchased the dip to $38.52 today. This indicates that the sentiment remains positive and the bulls are buying at lower levels.

The buyers will now try to resume the uptrend by pushing the price above $44.33. If they succeed, the LINK/USDT pair could rally to $50.

Contrary to this assumption, if the price again turns down and breaks below the $36.93 support, the pair could drop to the 20-day EMA ($34). If this support cracks, the decline could extend to the 50-day SMA ($30).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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