Digital Asset Insights Digital Asset Insights #94
courtesy of trademakers
Stay informed, do not make your next crypto move without the right history and careful predictions. This newsletter comes in handy in guiding you in your digital assets’ investments.
In the first 24 hours of last week, Bitcoin lost 4% once again testing the strength of the $16K area. Bitcoin failed to develop a rebound, facing an intensified sell-off near $17K and about 23.6% of the move down from 5 to 10 November.
By Tuesday, November 21, Bitcoin price broke out to the downside after nearly two weeks of consolidating in the $17,000 range. The breakout produced a monthly low of $15,476. The peer-to-peer digital currency retaliated against the bearish onslaught as the bulls recovered 5% of losses on Tuesday, November 22. Still, a pennant formation, which surrounded the BTC price throughout the 2-week consolidation, projected targets between $13,500 and $14,000. Bitcoin price auctioned at $16,161. A bullish divergence catalyzed the 5% hike reported on several altcoins during the New York session on November 21. The bulls faced significant resistance near the 8-day exponential moving average at $17,000.
On Thursday, Bitcoin price recovered 7% of market value after breaking out to the downside after nearly two weeks of consolidation. Bitcoin price auctioned at $16,617. The 7% relief rally became a stalemate on Thursday, November 24, as the bulls and bears wrestled for grounds on smaller time frames. Bitcoin price shows a falling wedge formation on the three-day chart described by using trend lines to connect with two lower highs and three lower lows. The third retest of the lower trend line is still in play as BTC hovers around $16,500.
Going into the new week, Bitcoin price formed an inverse head-and-shoulders setup on the four-hour chart. It should be noted that BTC is yet to produce a four-hour candlestick close above the neckline at $16,330 to kick-start this inverse head-and-shoulders forecast. While this bullish outlook is plausible, a flip of the $17,593 hurdle will open the path for Bitcoin price to retest $19,011, the highest traded volume level in 2022. Due to the nature of this blockade, 2022’s last bear market rally for BTC is capped at $19,011.
On the other hand, if Bitcoin price slides below the $16,000 psychological level and fails to recover, it will indicate a lack of bullish momentum. This move would allow sellers to take control and knock BTC to retest the $15,721 support level. Here, buyers can band together and attempt another recovery rally.
At the beginning of last week, Ethereum price crumbled under massive selling pressure and yielded 8% overnight losses for holders, following recent developments. ETHUSD shed close to 30% of its value in November as traders watched the FTX saga unravel. The exploiter behind the now bankrupt FTX exchange hack is one of the largest Ethereum holders in the world. The hacker converted stolen stablecoins to Ether before swapping the largest altcoin for renBTC.
Ethereum price has seen better days as the bears produced a 10% decline since last week Sunday. As of Tuesday, November 21, the bulls were trying to produce a countertrend bounce, but the attempt could be exhausting their underlying strength. Ethereum price auctioned at $1,119.
Ethereum price has recovered 7% of lost market value after the weekend’s 10% decline. At the time of writing, the bulls have failed another attempt to hurdle the 8-day exponential moving average (EMA). The indicator has acted as resistance since the middle of November, forging several rejections near the $1,250 zone. Ethereum price auctioned at $1,154.
On Thursday, Ethereum price pulled off an impressive 12% rally as side-lined bulls immediately jumped in a sub-$1,100 price. Like BTC, the ETH price breached the 8-day exponential moving average but remained confined under the previously broken support zone near $1,200. Ethereum price exchanged hands at $1,199. Several bearish divergences were established on smaller time frames within the recovery rally on the Relative Strength Index.
Going into the weekend, Ethereum price rallied 7% after the Momentum Reversal Signal indicator flashed a buy signal on November 22. This crucial signal, along with a bullish divergence, was noted in our previous publication. As ETH hovers below the $1,187 hurdle, investors should note that there is a decline in momentum due to the holidays in the US.
Ethereum price traders should await a flip of the $1,187 hurdle into a support floor to make a move. If successful, ETH can make its way to equal highs formed at $1,290 and $1,350. While things are looking up for Ethereum price, rejection at $1,197 followed by a daily candlestick close below $1,073 will create a lower low. This development will invalidate the bullish thesis for ETH and catalyze a spike in selling pressure. Such a move could see Ethereum price revisit the equal lows at $998.
XRP price is printed its first green 12-hour up candle after the crypto market bled again due to the aftermath of the FTX crisis on Monday, November 20. Over 24 hours, the seventh-largest cryptocurrency saw a massive uptick in traded volume marginally above $2 billion. However, most of this volume pushed down on XRP price amid concerns over the hacker who made away with $600 million, mainly in Ethereum from FTX. XRP price recovered as investor risk appetite steadily improved
On Tuesday, XRP price has succumbed to the bearish stronghold, much like Bitcoin and Ethereum. The digital remittance token has now formed a range between $0.34 and $0.39. The technicals show lower highs and higher lows progressively throughout the month. The newfound congestion zone is likely to resolve in an explosive move. If the move is bearish, the XRP price will likely trade sub-$0.30 in 2023.
XRP auctioned at $0.37. The bulls attempted the first attempt to hurdle the 8-day exponential moving average (EMA) after the rejection that prompted the weekend’s 10% decline.
On Thursday Ripple (XRP) price was on the cusp of printing a very solid week of gains as it built a three-day winning streak. XRP was able to make gains as it broke above the key pivotal level at $0.3710 from the past summer.
On November 23, XRP price diverged from the pack once again as the technicals display a bullish undertone. Throughout the last two weeks, the digital remittance token formed a range between $0.34 and $0.39, progressively producing higher highs and higher lows. Last week, as the bulls recovered 15% of lost market value, the XRP price breached the consolidative range to the upside establishing a new high at $0.404.
As the weekend approached, XRP exchanged hands at $0.399. The bullish breach created a plausible 12% uptrend scenario targeting the previously broken support level at $0.44. The bulls hurdled the 8-day exponential moving average and were trying to hurdle the 21-day simple moving average as well. A close above the second moving average could be the entry signal side-lined bears are looking for to join the trend.
At the beginning of last week, the Cardano (ADA) was down 9.5%, trading at $0.3942 on Monday, November 20 and it was ranked the 8th largest cryptocurrency with a market cap at around $13 billion according to CoinGecko data. The Cardano blockchain went through a big upgrade with the Vasil hard fork in September, which introduced an optimized code base and reduced transaction times. The new features were supposed to boost its price, but it failed to do so after being down 22% over last month and almost 82% when we look at the period from January up until this point.
On Wednesday, November 23, Cardano price auctioned at $0.3121, just below the previous consolidation’s support zone. During the week’s decline, the bears established a new monthly low at $0.298. The Relative Strength Index showed the bulls were still submerged below oversold levels.
On Thursday, Cardano price continued to disappoint as the bears had flexed a continued strength over the market throughout November. Since the start of the month, the self-proclaimed Ethereum killer token has lost 30% of its market value. A newfound yearly low at $0.2995 was established on Monday, November 21. As the bulls produce a temporary pullback, the technicals suggest a low could be near, but on-chain metrics suggest otherwise. Cardano price traded at $0.31.
Cardano price action between November 11 and 25 shows that a trend line can be drawn connecting the four lower highs formed in the same period. On November 26, however, ADA saw a sudden spike in selling pressure, which pushed it above the aforementioned trend line. After overtaking this blockade, Cardano price grappled with an overhead hurdle at $0.321. Traders need to exercise caution and enter long positions after ADA flips the $0.321 resistance level onto a support floor. In such a case, Cardano price could trigger an 18% upswing to $0.382.
While things are looking up for Cardano price, a breakdown of the $0.300 support level will invalidate the bullish thesis. This development will allow ADA to revisit the $0.310 support level.
Solana price dropped 95% since its all-time high at $259.90 in November 2021. This downtrend grew wings in the first week of November 2022 as the FTX exchange collapsed. As a result, SOL shed roughly 70% in the last three weeks. Interestingly, this massive selloff coincides with the breakdown of the head-and-shoulders pattern reported on November 9. The 70% crash has pushed Solana price to flip the $13.84 support level into a resistance barrier.
On Tuesday, November 21, Solana price was ripping through resistance with almost 10% gains in just two trading days. SOL remained at the mercy of equities and the slightly weaker USD that appeared to be in some sort of short-term correlation.
On Wednesday, last week, Solana price was fighting a critical seller congestion zone at $16.00, a few days after confirming support at $11.00. Over the last four weeks, the smart contracts token has come under heavy selling pressure following its exposure to the fallen crypto giant FTX. SOL was among the best-performing cryptocurrencies in 2021 when it rallied to tag a new record high at $259. The platform has, since its inception, been flaunted as a worthy Ethereum competitor.
However, the 2022 bear market run, coupled with the FTX implosion earlier this month, caused a 94.5% drop from the historical highs. Investors are waiting with bated breaths for a strong uptrend that could propel SOL to its former glory.
Going into the weekend, Solana price recovered but lacked momentum. Santiment, a leading on-chain analytics platform, reported a Solana bottom roughly at $11.00. SOL was not left behind, as the crypto market generally rebounded on Thursday. According to Santiment, fear, uncertainty and doubt (FUD) could force Solana to stretch its leg higher. Traders have, in the last few weeks, ganged up against Solana for a southbound move, with some predicting a breakdown to zero. The Solana price was back in the green.
The Solana price traded at $14.36 at the time of writing and after printing two green candles from support at $11.00. Bulls were engaged in a fierce battle with the bears, making the expected break above resistance at $16.00 a daunting task. We can predict the possibility of the Moving Average Convergence Divergence (MACD) indicator sending a buy signal. However, before that, bulls must reinforce their presence in the market by cracking the resistance at $16.00.
A successful break above $16.00 will not only sabotage the call for a drop to zero but pave the way for a sharp climb to test $26.57 (broken rectangle pattern support) and the 50-day Exponential Moving Average (EMA) (in red) at $34.74. This is an important price level because it coincides with a falling trend line that has been respected since November 21. Another successful break beyond the trend line could signal an incoming change from a long-term downtrend to a sustainable uptrend.
Digital Asset Insights
Digital Asset Insights #94
first appeared on trademakers.
Connect with JP Fund Services
Follow us for the latest news & insights
Share this post