Price analysis 1/3: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE

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Bitcoin (BTC) price action has gone smoothly in the first few days of the new year and continues to languish below the psychological level of $ 50,000. The Crypto Fear and Greed Index is in the fear zone, registering a value of 29/100.

On-chain analytics resource Ecoinometrics said the extreme fear stages rarely last long, meaning “there’s a downside limited to 30 days.”

Bitcoin continues to garner support from various quarters. Wharton School finance professor Jeremy Siegel said in an interview with CNBC that Bitcoin has replaced gold as a hedge against inflation in the minds of Millennials.

Daily performance of the cryptocurrency market. Source: Coin360

Savvy investors have turned to Bitcoin to protect their wallets against the possible depreciation of fiat currencies. Hungarian-born billionaire Thomas Peterffy has advocated putting 2% to 3% of his portfolio in crypto to cover himself in case fiat “goes to hell”.

Could Bitcoin drop its beach related action and start a trend move? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC / USDT

Bitcoin’s failure to break above the 20-day exponential moving average ($ 48,449) suggests the bears are selling with every minor rally. Both moving averages are down and the Relative Strength Index (RSI) is in the negative zone, indicating an advantage for the bears.

BTC / USDT daily chart. Source: TradingView

The bears will now try to drop the price below the strong support at $ 45,456. If they are successful, it will suggest resuming the descent. The BTC / USDT pair could first drop to the December 4 intraday low of $ 42,000 and if that level cracks the next stop could be $ 40,000. The longer the price holds below the 20-day EMA, the greater the possibility of a drop.

Conversely, if the price goes up and exceeds the 20 day EMA, it will suggest that the bulls are attempting a comeback. The pair could then hit the 50-day simple moving average ($ 51,938), which could be a strong barrier. If the bulls push the price above this level, it will suggest a possible trend change. The pair could then start rising to $ 60,000.

ETH / USDT

The Ether (ETH) rebound on the $ 3,643.73 to $ 3,503.68 support area has hit the 20 day EMA ($ 3,899) where the bears are mounting a tall order.

ETH / USDT daily chart. Source: TradingView

Gradually declining moving averages and the RSI in the negative zone indicate that the bears have the upper hand.

If the price continues to fall, the bears will try again to pull the ETH / USDT pair below the support area. If they succeed, the pair could start its descent to $ 3,270 and then to $ 2,800.

On the contrary, if the bulls push the price above the moving averages, it will suggest that the corrective phase may be over. The pair could then rise to $ 4,488

BNB / USDT

Binance Coin (BNB) bounced off strong support at $ 500 and hit the 20-day EMA ($ 536) where the recovery faces resistance. Both moving averages are moving lower and the RSI is in the negative zone, suggesting a minor advantage for the bears.

BNB / USDT daily chart. Source: TradingView

If the bulls push the price above the 20-day EMA, the BNB / USDT pair could hit overhead resistance at $ 575. This level can again act as a stiff resistance. If the price drops from that level, the pair could extend its stay in the $ 500 to $ 575 range for a few more days.

Conversely, if the price drops against the 20-day EMA, the bears will again try to push the pair below $ 500. If successful, the selloff could intensify and the pair could start a new downtrend at $ 450.

SOL / USDT

Solana (SOL) has traded between $ 167.88 and the 20 day EMA ($ 180) over the past few days, but this narrow range trading is unlikely to continue for long.

SOL / USDT daily chart. Source: TradingView

Both moving averages are going down and the RSI is in the negative zone, indicating that the bears are in control. If the sellers pull the price below $ 167.88, the SOL / USDT pair could drop to $ 148.04 and then to $ 120.

Conversely, if the bulls push the price above the 20-day EMA, the pair could reach $ 204.75. This level may again act as resistance, but if the bulls overcome this obstacle, the pair could move up to the resistance line of the descending wedge pattern.

ADA / USDT

Cardano (ADA) has traded near the 20-day EMA ($ 1.37) over the past few days, suggesting a deadlock between the bulls and the bears.

ADA / USDT daily chart. Source: TradingView

If the bulls propel the price above the 20-day EMA, the ADA / USDT pair could hit overhead resistance at $ 1.59. A breakout and close above this level could push the pair towards the resistance line of the descending channel.

Bulls will need to push and hold the price above the channel to indicate that the downtrend may be over. Conversely, if the price drops from the current level, bears will try again to pull the pair below $ 1.18 and test the critical support at $ 1 again.

XRP / USDT

XRP rebounded from $ 0.80, but the bulls are struggling to push the price above the 20-day EMA ($ 0.87). This suggests sentiment remains negative and traders are selling on rallies.

XRP / USDT daily chart. Source: TradingView

If the price continues to fall, the bears will try to pull the XRP / USDT pair towards the strong support at $ 0.75. If this level cracks, the pair could initiate the next stage of the downtrend at $ 0.60.

On the contrary, if the price breaks the moving averages, the pair could move up to $ 1. This level can act as strong resistance and if the price drops, the pair could remain in the range for a few more days.

A breakout and close above $ 1 could indicate that the downtrend may be over. The pair could then start its march towards $ 1.41.

LUNA / USDT

Terra’s LUNA token is in an uptrend. Both moving averages are rising and the RSI is in positive territory indicating that the bulls have the upper hand.

LUNA / USDT daily chart. Source: TradingView

The bulls try to push the price above the minor resistance at $ 93.81. If the price holds above that level, LUNA / USDT could retest all-time high at $ 103.60. A breakout and close above this level could signal a resumption of the uptrend.

The pair might first rise to $ 135.26 and then hit $ 150. Contrary to this assumption, if the price drops from the current level and goes below the 20-day EMA ($ 83), it could signal the start of a deeper correction to the 50-day SMA ($ 66 ).

Related: Bitcoin Dips Below $ 47,000 As Soaring US Dollar Dampers BTC Price Performance

AVAX / USDT

Avalanche (AVAX) rebounded from the $ 98 support and broke moving averages on Dec 31, but the bulls were unable to cross the downtrend line. This suggests that bears defend this level vigorously.

AVAX / USDT daily chart. Source: TradingView

If the bears pull the price below the moving averages, the AVAX / USDT pair could drop to $ 98. A break below this level could open the doors to a possible fall to $ 75.50.

On the contrary, if the price bounces from the moving averages, it will suggest that sentiment has turned positive and traders are buying when there is a bottom. This will improve the outlook for a breakout above the downtrend line.

The pair could then rise to $ 128. A breakout and close above that level could complete an inverted head-and-shoulder setup, which has a target target of $ 177.50.

DOT / USDT

Polkadot (DOT) broke the 20-day EMA ($ 28) on January 2 and the bulls will now try to clear the air resistance zone at $ 31.49 to $ 32.78.

DOT / USDT daily chart. Source: TradingView

The 20-day EMA is stable and the RSI has moved into positive territory, indicating that buyers are attempting a comeback. If the bulls push the price above $ 32.78, the DOT / USDT pair could hit $ 40.

If the price drops from the overhead area, this will suggest that the pair could consolidate between $ 22.66 and $ 31.49 for a few more days. Bears will need to pull and hold the price below $ 22.66 to initiate the next stage of the downtrend.

DOGE / USDT

Dogecoin’s (DOGE) rebound at the 20-day EMA ($ 0.17) faces strong resistance from bears. The moving averages continue to fall and the RSI is in the negative zone, suggesting that the bears are in control.

DOGE / USDT daily chart. Source: TradingView

The sellers will now try to pull the price down to $ 0.15. If the price rebounds to this level, the bulls will try again to push the DOGE / USDT pair above the 20 day EMA. If they do, the pair could hit overhead resistance at $ 0.19.

A breakout and close above $ 0.19 will be the first sign that the bulls are back in the game. The pair may first rise to $ 0.22 and then to $ 0.24.

Alternatively, if the price drops below $ 0.15, the downtrend could resume. The pair could drop to $ 0.13, then slide to the psychological level at $ 0.10.

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

Market data is provided by HitBTC exchange.