The week started on a bearish note as a spillover of the previous week’s sentiment was still at play. We started seeing a change of price actions as the bullish news started flooding the market. One of this news is that Microstrategy returns to the market to purchase 5,050 bitcoins for $242.9 million in cash at an average price of $48,099 per BTC. The latest purchase means that the company now holds 114,042 bitcoins acquired for a total cost of $3.16 billion.
The good news continued through the week down to the most recent of Laos authorizing mining and trading operations in its territory, contradicting policies from its central bank that issued warnings against crypto just a month before. The total cryptocurrency market cap is up by 5% during the last seven days with this news contributing to the growth. Let look at how coins in the top 10 performed through the week?
There were many predictions that bitcoin will hit $50,000 this week but as of the time of writing, the coin is yet to hit the mark. The king coin hit a low of $43,591.32 and a high of $48,791.78 over the past seven days. During the last 24 hours, BTC increased by 2%. The coin was on its way to $49,000 but fell short as it hit resistance before $48,800.
The largest coin by market cap is trading above $48,000. It needs to continue trading above this level as it will play a vital role in BTC ascension to $50,000. Recent price movement reveals that the $48,000 support, though weak have been the point of a rally to $50k more than twice in the last thirty days. When crypto’s firstborn hit $50,000 earlier this month, the price rally took five days with the coin edging closer to the mark with every passing hike.
A prolonged stay above $48k with no breakout may place bitcoin at risk of dropping as low as $46,000. Increased selling pressure may lead to the coin testing and flipping the $44k support.
Ether has been trading between $3,600 and $3,100 over the last six days. This trading pattern has been in play for some time now. Ether failed to break the trend leading to its inability to hit $4,000. In recent times, the $3,500 mark have supported the drive above $4,000. Price actions are not the same as before but the $3,500 support is vital if the largest alt will surge to $4,000.
The buyers will have to defend the $3.5k mark to ensure an attempt at $4,000. Failure to hold this level may result in ETH dipping as low as $3,100. RSI as of this time is bullish as buying pressure increases. MACD may converge soon, heralding the impending price hike to $4,000.
Following the rollout of the Cardano hard fork, Alonzo, more than 200 smart contracts have been listed on the Cardano blockchain explorer. There was an earlier prediction that we may see Cardano surge as high as $2.8 as it aims for $3. This prediction did not come true as we notice that the ADA/USDT keeps decreasing almost every day since the week’s beginning.
The current chart pattern is a pennant. This is an indication that Cardano may continue its uptrend. The Moving Average Convergence Divergence (MACD) hints that the resumption of the upward drive may not happen this week or in the early parts of the next. The Relative Strength Index (RSI), could overturn MACD reading as it picking the moment and prices may react positively.
The Binance token continues it stays below $450 with no attempt at the resistance since the week’s beginning. The highest the coin went is $440 and the $380 support was held out after one attack this week. The coin is currently trading at $413. The current price suggests that BNB is not saved from a price drop below $400.
Recent price action also points to a stalemate between both factions of the market around $390 to $450. A breakout from these boundaries will either mean a retest of the $500 resistance or flipping of the $350 support. MACD suggest that the end of the stalemate may be at hand as both lines are about intercepting – falling in favour of the buyers.
The Ripple coin has had a pretty dull week so far. Since hitting $1.13 earlier, it has been unable to retest the price mark. The coin has seen a low of $1.03 during the time under consideration and as a result, it has decreased by 4% at the start of the week. Market fundamentals have been a little flat; there’s much news on XRP.
If the bears can hold XRP below the 50 days MA. We may see the sixth coin by market cap dip as low as $0.9. The bulls need to hold on to the $1 support and start a rally to ensure the coin does not test the critical support. RSI at this time is a little bullish and if this continues, buying pressure may cause a change in the downtrend the coin is experiencing.
A recent analysis warned that the Moving Average Convergence Divergence (MACD) both lines have converged to give off a bearish signal as the blue line intercepts the orange which has not been seen on the daily chart since July. An earlier article stated that Solana may dip lower than $150.
We saw this take place more than once this week. The SOL/USDT pair is trading at $158 per unit; showing that the coin is not off the hook and could drop below the set mark. The coin will have to go as high as $180 to gain more advantage over the bears.
A market outlook contained a prediction that Polkadot may continue to fall back on the $35 support until it flips $38. Massive seller congestion may result in the coin falling back to $30. The analysis concluded by adding that the DOT/USDT pair has the potential to surpass $40 this week as the bull will continue to push the coin. The coin failed to hit $40 but tried flipping $38 and failed. As predicted, DOT fell back to $35 but as selling pressure intensified it also broke the support.
The sellers could mount more pressure on Polkadot; causing it to drop below $30. The $35 resistance will break as the right-wing traders as the current price the coin is trading at is closer to the price level. DOT may retrace to $30 if the bulls are unable to sustain prices above $35. The chart above shows the 50-days MA about to intercept the 200 to complete a golden cross. The could be the start of a bullish run.
The Relative Strength Index (RSI) over the last six days is slightly bearish as it dipping. Dogecoin is trading below both the 50-days and 200-days MA – a bad sign for the buyers. The DOGE/USDT pair saw a price rally a few days to the time of writing but it was not enough to ensure that it does not drop as low as $0.23.
A previous analysis identified the $0.23 support is the strongest in preventing further price drop. This support has been held out for the past five days in which it suffers attacks twice. The inability of the bulls to reignite the uptrend has resulted in the coin delay in regaining $0.3. We may see DOGE at $0.20 if the bulls don’t rally the market.
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