Digital Asset Insights Digital Asset Insights #102

courtesy of trademakers

What is the reality of digital currencies and why should you consider investing now? If you have been following these weekly reports, you would have noticed some interesting up trends that you could take advantage of. Now is the time to be informed and guided into the world of cryptocurrency.


Bitcoin (BTC)

Bitcoin started the week at $23,000 and experienced profit-taking consolidation. Traders faced a decision as the market cooled off. Bitcoin opened the week at $22,837, 2% below the monthly high of $23,371.80.


On January 25th, Bitcoin held steady at $23,000, resisting a sell-off and consolidating as the only barrier to reaching previous highs of $25,000 and $28,000. The next day, it was back within its range. Bitcoin price auctioned at $23,084, as profit is being taken on smaller time frames after rallying 5% earlier in the day. The bulls accomplished a new high on the month at $23,816. It is evident now that the BTC faces significant resistance near $24,000. Since BTC is already up 40% since January 1, traders may want to move their stop losses higher to secure profits in the event of a stronger decline.


As the week came to an end, Bitcoin price was finding resistance near the mid-$23,000 price zone. While the bullish rally was impressive , traders viewing the consolidation as a weakening trend may be overlooking a few details.  Bitcoin price exchanged hands at $23,146 on Saturday. During the week-long consolidation, the Bitcoin price has produced higher highs progressively. On January 25, the Bulls produced a new monthly high at $23,816 after finding support from the 8-day exponential moving average.


So long as BTC can sustain itself above $23,000, the bulls should continue aiming for higher targets. The next key level of interest is the $24,000 zone, followed by the $24,650 liquidity level. The bullish trade idea creates a potential 7% upswing from the current BTC price.


As mentioned, a breach of the 8th-day exponential moving average to the downside would be a justified entry for sidelined bears. If the breach occurs, the 21-day simple moving average, which has remained untested throughout the 40% rally, would be a key level to aim for.


Ethereum (ETH)

Ethereum price was undergoing account consolidation after tagging the mid-$1,600 zone early last week. Like Bitcoin, the RSI was overbought and shows a bearish divergence between highs at $1,675 and $1,566. As the price consolidates 2% below the liquidity level, it is hard to believe market makers would rally the ETH price so close to the bakery without eating the pie.


On January 22. Ethereum price auctioned at $1,636. Traders expected a rise in the coming hours, with resistance to show up near the psychological $1,700 price zone. However, on January 23, Ethereum price reacted first. Ethereum price peaked at $1,679.


Ethereum price witnessed the largest red day in 2023 as the decentralized smart contract token fell by 4% on January 23. Since the breach, the ETH price pulled off an impressive 180, rallying by 5% and reconquering the $1,600 zone.


Ethereum price auctioned at $1,623. The January 25 auction settled with a 5% gain above the 8-day exponential moving average. Experts believe the next trade will likely propel ETH into the $1,700 zone, resulting in an additional 7% increase in market value.


At the end of the week, Ethereum price showed similar technicals to Bitcoin with one slight variable. Ethereum witnessed a seven-day consolidation last week at the mid-$1600 zone until January 23. Since the sell-off, the bears have maintained their power, forging a new wall of resistance near $1610.

Ethereum price closed the week by auctioning at $1603,  and going on the fifth consecutive day being rejected at the $1610 resistance barrier. Traders should pay keen attention to this level  throughout the weekend as a smaller time frame candlestick close above the barrier could trigger a massive buying frenzy.


If a breach above $1610 occurs, a $1700 Ethereum will likely become a new reality. Invalidation of the uptrend move would be a breach below the recent swing low at $1552.


Ripple (XRP)

XRP price decoupled from the other two cryptocurrencies (BTC & ETH) as the bulls prompted an 8% rise at the beginning of the week. On January 23, while Bitcoin and Ethereum sparred over new price fluctuations, the digital remittance token soared into new highs, tagging old liquidity levels near the $0.42 zone.


XRP price auctioned at $0.421 as profit-taking  occurred post-surge. Another key difference between Ripple and the other two currencies is that the Relative Strength Index has not broken out into overbought territory on the daily time frame. Despite the surge, which is now a 40% ride since the January 1 low at $0.30, the RSI remains suppressed beneath the 70 levels. This suggests that XRP’s move to the upside could be a part of a much larger correction within an overall downtrend.


On January 25, Ripple price overcame a string of important hurdles in its 2023 rally. This move sliced through and flipped the $0.400 blockade that has plagued XRP holders for the last six months. Hence, the recent sell-off seems to have been supported by buyers at this aforementioned level. As long as this barrier continues to provide buying pressure, things are not bearish for Ripple price.


On January 26, XRP price was up 2% as the bulls bounced from a previous resistant trend line. The breached trend, which acted as resistance between January 14 and January 20 when XRP traded at sub-0.400 price levels, provided cushion space for bulls to enter the market during an early afternoon sell-off on January 25.


XRP price cexchanged hands at $0.415. The back-and-forth price action last week was a firm signal that the market would witness a strong move in the coming days. If the direction is north, the Ripple price will tag November’s broken support zone at $0.440. The bullish scenario creates a potential 7% spike from XRP’s current market value.


At the end of the week, XRP price witnessed a countertrend pullback after falling 3% earlier in the day. XRP auctioned at $0.41. The back-and-forth pullbacks within the low $0.40 zone is telling of the underlying sentiment around the digital remittance token. Based on recent market behavior, a breach above the recent high at $0.428 will give way to a rise toward the broken support zone at $0.44.


Cardano (ADA)

Cardano’s (ADA) native token, ADA, reached highs of $3.10 in 2021, and was valued at $0.3529 following the bear market of 2022. Despite this decrease, many investors are confident Cardano (ADA) will bounce back in the upcoming months. Since the end of December, Cardano (ADA) has increased by 32.79% in value, with further increases speculated for the next few weeks. Should this rise continue, Cardano (ADA) could easily hit a new all-time high in 2023.


As of January 23, Cardano price had rallied 50% since January 1. There are subtle cues within the technicals that suggest Cardano is going to profitable opportunities for traders to partake in. Cardano price auctioned at $0.37. On January 18, the bears breached the 8-day exponential moving average. The next day a classical retracement of the breached indicator occurred, enticing many bears to open a short position. On January 20, the classical trade setup was invalidated. The Cardano price rallied 10% in one day, trapping two days’ worth of retail bears in the process.


At mid-week, the Cardano price remained elevated above where the bears entered the market between $0.355 and $0.325. On January 25, Cardano loss only 10% of the 61%. After stretching to the top near $0.388, a very close rejection followed against $0.384. On Wednesday a rejection against the monthly R2 at $0.362 looks to be the next one.


On January 26, Cardano price continues to display bullish technicals as a new monthly high at $0.389 was established.The 4% rise on the day brings Cardano’s total uptrend to a 60% rally since the start of the new year. Cardano price auctioned at $0.380. The recent uptick enabled a hurdle above the 8-day exponential moving average.


Cardano (ADA) price has been advancing and looks ready to close January in the green. The only big question or caveat for that is if that will be against the two massive bearish caps that are lying above the price action at the moment on a broader time frame.


Cardano price is set to snap the losing streak that has been ongoing since August of last year. Elements triggering a constant sell-off were staggering high inflation worldwide and harsh rhetoric from central bankers that this inflation would not go away without pain for the underlying economy. As inflation has been coming down, markets have been rallying a bit too preemptively higher with the idea that inflation will go down in a straight line toward 2%, which would be unusual historically as hiccups along the way are the norm.


ADA price has not seen its volume restored to its normal trading level since 2018. A rally of this magnitude under such slim volume tells us that the rally has been made on loose screws and could break with the littlest shock: for example, a sudden inflation jump instead of a decline.


Solana (SOL)

Solana (SOL) was one of the best-performing cryptocurrencies of the 2021 bull market. Solana’s (SOL) value dropped significantly in 2022, though has since bounced back throughout January 2023 with a monthly price increase of 90.56%. Consequently, many investors have flocked back to Solana (SOL), which has sparked trading volume.


With a range of applications and already being a popular investment, investors predict that the value of Solana (SOL) could rise to over $100 in 2023. This makes Solana (SOL) a strong investment for any portfolio going into the new year.


Solana price hovered around the $24 mark for more than ten days, with the altcoin trading at $24.41 at the beginning of last week. Although the altcoin maintained a sideways momentum for couple of trading sessions, it was still in an uptrend with indications of further rise. On January 25, Solana price auctioned at $24.45.


Solana price impressed traders and investors alike this month when the altcoin marked an exceptional rally of more than 150% to touch the $26 mark. Although, at mid-week, the movement was slow.

Solana price on the daily chart has been moving sideways over the last few trading sessions after the uptrend took a break since January 20. This sideways movement also invalidated the month-long uptrend resulting in the price being stuck around $23.93.


If the broader market cues turn bearish and Solana price starts slipping, it will first face the immediate support at $22.77. However, if the cool down ends and Solana price goes back to climbing the charts, recovery of the uptrend could be on the cards. This would push the price toward the critical resistance at $28.28. A daily candlestick close above this level would invalidate the bearish thesis, putting SOL on the way toward $32.06 and further.

The post

Digital Asset Insights

Digital Asset Insights #102

first appeared on trademakers.

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