According to crypto analyst Rakesh Upadhyay, certain altcoins, including Bitcoin and MATIC, are showing continued signs of recovery over the next few days. So, can cryptocurrencies come out of slumber and start a sustainable recovery as investors allocate fresh money to various asset classes? The analyst looks at the technical picture of the top 10 cryptocurrencies to find out.
Cryptocurrency market overview
cryptocoin.com As you follow, gold made a strong start to the new year. It is now trading near a seven-month high on expectations that the Fed may raise rates to just 25 bps at its next meeting on Feb.
Cryptocurrency markets also showed a slight rise. However, it has not made a definite upward movement yet. One reason is Digital Currency Group’s liquidity issues, which resurfaced after Gemini co-founder Cameron Winklevoss wrote an open letter to DCG CEO Barry Silbert over $900 million that Genesis allegedly owed Gemini. There may be renewed fears involved.
Daily cryptocurrency market performance / Source: Coin360Dante Disparte, Circle’s chief strategy officer and head of global policy, said something that sounded positive amid all the gloom. In a post for the World Economic Forum on January 2, he noted that the current crisis in the cryptocurrency space could finally be a boon. Disparte believes that the 2022 crypto bear market could begin the ‘transfer of crypto technology and Blockchain infrastructure into stronger hands’. Now it’s time for analysis…
BTC, ETH, BNB, XRP and DOGE analysis
Bitcoin (BTC)
BTC rallied above the moving averages on January 4, showing buying at lower levels. The next level to watch on the upside is $17,061 where the bears may face strong resistance.
BTC could accelerate towards $18,388 if the buyers manage to climb above $17,061. This level could again witness a struggle between bulls and bears. Conversely, if the price fails to stay above $17,061 it will indicate that the bears are selling in relief rallies. This could keep BTC range-bound for a few more days. The bears will have to push the price below the strong $16,256 support to gain the upper hand.
Ethereum (ETH)
ETH broke above the moving averages on January 4th, indicating that the bulls have the upper hand in the near term. The price could start its march towards the overhead resistance at $1,352.
The bears are likely to fiercely defend the zone between $1,352 and the downtrend line. If the price turns down from this zone, ETH could drop to the moving averages. If the price rises above the 20-day exponential moving average ($1,219), this would suggest a change in sentiment from selling on rallies to buying on dips. This could increase the likelihood of a break above the downtrend line. The short-term advantage could turn in favor of the bears if the price declines and dips below $1,150.
Binance Coin (BNB)
Consolidating near the breakout level for the past few days, BNB made a decisive move on January 4 and broke above the general resistance. This suggests that the break below $250 on Dec. 16 could be a bear trap.
The 20-day EMA ($251) flattened and the relative strength index (RSI) moved into positive territory. This indicates that the bulls are back. The momentum could increase further if buyers push the price above the 50-day simple moving average ($268). This could clear the way for a potential rally to $300. If the bears are looking to trap the aggressive bulls, they will have to quickly push the price below the $236 support. This could accelerate the sell-off and pull BNB towards the vital support at $220.
Ripple (XRP)
XRP bounced back from the 20-day EMA ($0.35) on Jan. 3 but the bulls successfully defended the support line of the symmetrical triangle.
XRP has reached the 20-day EMA, which could be the scene of a tough battle between the bulls and bears. If the bulls peak, the pair could climb to the resistance line of the triangle. Conversely, if the price drops from the 20-day EMA once again, this will indicate that the bears are selling on the helping rallies. This can increase the probability of a break below the support line of the triangle.
Dogecoin (DOGE)
DOGE bounced back from the downtrend line on Jan. 3, but the bears did not allow the price to drop below the critical support of $0.07. This indicates that demand is at lower levels.
DOGE can rise to the 20-day EMA ($0.07) and if this level is broken, the next stop could be $0.08. Bears are expected to defend this area strongly. Because a break and close above this could provide a strong pullback to $0.11. Conversely, if the price breaks from the 20-day EMA, the bears will make another attempt to push the DOGE below the critical support near $0.07. If they manage to do so, DOGE could decline to the main support near $0.05.
ADA, MATIC, DOT, LTC and UNI analysis
Cardano (ADA)
ADA’s recovery hit the first hurdle at the 20-day EMA ($0.26). The bears have successfully defended this level in previous relief rallies. So they can try to do it again.
However, the RSI has rallied near the midpoint, indicating an increase in positive momentum. This increases the probability of a break above the 20-day EMA. In such a case, ADA may attempt a rally towards the downtrend line of the falling wedge pattern. Conversely, if the price fails to stay above the 20-day EMA, it will indicate that the bears are active at higher levels. They will then try to resume the downtrend by pulling the price below $0.24.
Polygon (MATIC)
MATIC has recovered to the 20-day EMA ($0.80), which indicates that the price may extend its stay in the wide range between $0.69 and $1.05 for a while.
If the bulls push the price above the 20-day EMA, MATIC could start a walk north towards $0.97. The 50-day SMA ($0.84) could act as a minor hurdle. However, it is likely to be exceeded. On the downside, $0.75 remains the key level to keep an eye on. A break and close below could push MATIC price towards the $0.69 range support. Price action within the range may continue to be random and volatile.
Polkadot (DOT)
The DOT’s recovery broke above the 20-day EMA ($4.59) on Jan. This is the first sign that the bears may be losing control.
The bulls will try to further strengthen their position by pulling the price above the 50-day SMA ($5.02). If they do, the DOT could push up the downtrend line. This level can again act as a major hurdle. Alternatively, the bears will try to protect the zone between the moving averages. If the price drops and dips below the 20-day EMA, this will indicate that sentiment remains negative and traders are selling in rallies. DOT could retest support at $4.22 later.
Litecoin (LTC)
LTC broke above overhead resistance on January 3 and closed at $75. This indicates that the bulls are trying to start a new upward move.
The 20-day EMA ($70) has started to rise and the RSI is in the positive territory. This gives buyers an advantage. There is a minor resistance at $78 and if this resistance is surpassed, it could take LTC to $85. The bears are unlikely to give up easily and could try to stop the recovery in the $78-85 range. They will have to push the price below the moving averages to trap the aggressive bulls. LTC could drop to $65 later.
Uniswap (UNI)
UNI’s break below the support line of the symmetrical triangle on Dec. 28 proved to be a bear trap as the bulls bought the dip and pushed the price above the 20-day EMA ($5.35) on Jan.
Buyers are trying to increase strength and break the hurdle at the 50-day SMA ($5.58). If they can achieve this, UNI may rise to the resistance line of the triangle. This level can again act as a hard barrier. If the price turns down from the resistance line, UNI may stay inside the triangle for a while. The bears will gain the upper hand if they manage to push UNI below the $4.94 to $4.71 support zone.