Značka: ethereum

Price analysis 5/16: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

The selling in Bitcoin (BTC) is showing no sign of abating and Bitcoin has fallen for seven straight weeks for the first time ever. This indicates that the momentum remains strongly in favor of the bears. While the short-term sentiment remains bearish, institutional traders seem to be taking a longer-term approach on cryptocurrencies. Goldman Sachs and Barclays joined several other institutional investors in a $70 million Series A funding round by institutional trading platform Elwood Technologies. Daily cryptocurrency market performance. Source: Coin360After the mayhem and volatility of the last week, crypto prices may attempt a relief rally in the next few days. It is unlikely to be a V-shaped recovery because the macro conditions are not supportive. During periods of high volatility and uncertainty, it might be a wise decision to cut down on the trading position size to keep risk under check.What are the critical support and resistance levels that may indicate a potential change in trend when breached? Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTBitcoin turned down from $3,460, suggesting that bears are selling on minor rallies. The bears will now attempt to sink the price below the crucial support at $28,805 but the bulls are likely to have other plans.BTC/USDT daily chart. Source: TradingViewIf price rebounds off $28,805, the bulls will again try to push the BTC/USDT pair to the 20-day exponential moving average ($33,646). This is an important level to keep an eye on because a break and close above it could indicate that bulls are attempting a comeback. The pair could then rise to the 50-day simple moving average ($39,300).Contrary to this assumption, if the price slips below $28,805, the pair could drop to $26,700. If this support cracks, the pair could resume its downtrend and the price may plummet to $25,000 and later to $21,800.ETH/USDTEther (ETH) is facing stiff resistance at the breakdown level at $2,159 which suggests that bears continue to sell on rallies. The bears will now try to pull the price below the immediate support at $1,940.ETH/USDT daily chart. Source: TradingViewIf they succeed, the ETH/USDT pair could drop to the critical support at $1,700. This is an important level for the bulls to defend because if they fail to do that, the downtrend could resume and the pair may drop to $1,500.Contrary to this assumption, if the price turns up from $1,700, the pair could rise to $2,159 and remain range-bound between these two levels.The first sign of strength will be a break and close above $2,159. That could clear the path for a rally to the 20-day EMA ($2,421). The bulls will have to overcome this barrier to indicate that the downtrend may be over. BNB/USDTBinance Coin’s (BNB) strong recovery reached near the breakdown level at $320 on May 13 and May 15 but the bulls could not clear this overhead barrier. This suggests that bears are attempting to flip the level into resistance.BNB/USDT daily chart. Source: TradingViewThe BNB/USDT pair could now drop to $265 which is likely to act as support. If the price rebounds off this level, the buyers will again try to drive the pair above $320. If they succeed, the pair could rally to $350 and thereafter to the 50-day SMA ($391).Alternatively, if the price slips below $265, the pair could drop toward the strong support at $211. The bulls are expected to defend this level with vigor. A strong bounce off this support could keep the pair range-bound between $211 and $320 for the next few days.XRP/USDTThe long wick on Ripple’s (XRP) May 13 candlestick suggests that bears are trying to pose a strong challenge near the breakdown level at $0.50. The failure to rise above this overhead resistance could have tempted short-term traders to book profits.XRP/USDT daily chart. Source: TradingViewIf the price continues lower and breaks below $0.38, the XRP/USDT pair could drop to $0.33. The bulls are expected to defend this level aggressively but if the support cracks, the bearish momentum could pick up and the pair may plummet to $0.24. Contrary to this assumption, if the price turns up from the current level or the support at $0.38, the bulls will try to push the pair above the $0.50 to $0.55 overhead zone. If they succeed, it will suggest that the markets have rejected the lower levels. That could clear the path for a potential rally to the 50-day SMA ($0.67).ADA/USDT Cardano’s (ADA) relief rally is facing selling near $0.61 suggesting that bears are not willing to let go of their advantage. The bears will try to pull the price below $0.46 and retest the May 12 intraday low at $0.40. ADA/USDT daily chart. Source: TradingViewIf the price breaks below $0.40, the selling could intensify further and the ADA/USDT pair may plunge to $0.33 and later to $0.28. Conversely, if the price turns up from the current level or the support at $0.46, it will suggest that bulls are attempting to put in a bottom. The buyers will have to push and sustain the price above the 20-day EMA ($0.68) to signal that the correction may be over. The pair could then rise to $0.74 and later to the 50-day SMA ($0.89).SOL/USDTSolana’s (SOL) bounce from $37 is facing stiff resistance at the 38.2% Fibonacci retracement level at $59. This suggests that bears continue to sell on minor rallies.SOL/USDT daily chart. Source: TradingViewThe bears will now try to pull the price below the immediate support at $44. If they succeed, the SOL/USDT pair could retest the crucial level at $37. A break and close below this support could sink the pair to $32.Conversely, if the price turns up from the current level or the support at $44, it will suggest that bulls are buying on dips. The bulls will then try to clear the overhead hurdle at $59 and push the pair to the 20-day EMA ($70). This level is likely to act as a stiff resistance.DOGE/USDTDogecoin’s (DOGE) recovery could not rise above the breakdown level at $0.10, suggesting that the bears are trying to flip the level into resistance. If sellers succeed in their endeavor, the likelihood of a retest of $0.06 increases.DOGE/USDT daily chart. Source: TradingViewThis is an important level for the bulls to defend because a break and close below it could signal the resumption of the downtrend. The DOGE/USDT pair could then drop to $0.04 where the bulls may again try to arrest the decline.Alternatively, if the price turns up from the current level, the bulls will attempt to clear the overhead hurdle at $0.10 and the 20-day EMA ($0.11). If they do that, the pair could rally to the 50-day SMA ($0.13).Related: Deus Finance’s dollar-pegged stablecoin DEI falls below 60 centsDOT/USDTPolkadot (DOT) climbed back above the breakdown level of $10.37 on May 13 but the recovery stalled near $12. This suggests that the sentiment remains negative and traders are selling on rallies. DOT/USDT daily chart. Source: TradingViewIf bears sink the price below $10.37, the DOT/USDT pair could drift lower toward the minor support at $8. If this level cracks, the possibility of a break below $7.30 increases. The pair could then resume its downtrend and plummet toward the next strong support at $5.Alternatively, if the price rebounds off $10.37 or $8, the bulls will attempt to push the pair above the 20-day EMA ($13). If they manage to do that, it will suggest that the short-term trend may have turned in favor of the buyers. The pair could then attempt a rally to $16.AVAX/USDTAvalanche’s (AVAX) recovery is facing stiff resistance at $38. The shallow rebound following a sharp decline suggests a lack of aggressive buying by the bulls. This could embolden the bears who may try to build upon their advantage.AVAX/USDT daily chart. Source: TradingViewIf bears pull the price below $29, the selling could pick up momentum and the AVAX/USDT pair could drop to the critical level at $23. This is an important level for the bulls to defend because a break and close below it could result in a decline to $20 and thereafter to $18.Contrary to this assumption, if the price turns up from the current level or $29, it will suggest that bulls are buying at lower levels. That could increase the possibility of a relief rally to the 20-day EMA ($48) where the bears may again mount a strong defense.SHIB/USDTShiba Inu’s (SHIB) rebound hit a wall at the 38.2% Fibonacci retracement level at $0.000014 on May 13 and 14, indicating that bears do not want to let go of their advantage.SHIB/USDT daily chart. Source: TradingViewThe bears will once again try to sink the price below the psychological level at $0.000010 and challenge the intraday low of $0.000009 made on May 12. A break and close below this level could signal the resumption of the downtrend. The SHIB/USDT pair could then decline to $0.000007 which is likely to act as a strong support.Contrary to this assumption, if the price rebounds off $0.000010, the bulls will attempt to push the pair to the breakdown level at $0.000017. The buyers will have to clear this hurdle to suggest that the bears may be losing their grip.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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Ethereum in danger of 25% crash as ETH price forms classic bearish technical pattern

Ethereum’s native token Ether (ETH) looks ready to undergo a breakdown move in May as it forms a convincing “bear pennant” structure.ETH price to $1,500?ETH’s price has been consolidating since May 11 inside a range defined by two converging trendlines. Its sideways move coincides with a drop in trading volumes, underscoring the possibility that ETH/USD is painting a bear pennant.Bear pennants are bearish continuation patterns, meaning they resolve after the price breaks below the structure’s lower trendline and then falls by as much as the height of the previous move downside (called the flagpole).ETH/USD two-hour price chart. Source: TradingViewAs a result of this technical rule, Ether risks closing below its pennant structure, followed by additional moves to the downside. The height of ETH’s flagpole is around $650. Therefore, if the price undergoes breakdown at the pennant’s apex point near $2,030 then the structure’s bearish target will be below $1,500, down over 25% from today’s price.Sell-off, pullbackInterestingly, the bear pennant’s profit target falls into the area that preceded a 250% price rally in the February-November 2021 session. Also, the target is around Ether’s 200-week exponential moving average (200-day EMA; the blue wave), currently near $1,600.Ideally, the demand zone could prompt Ether traders to accumulate the tokens in anticipation of a sharp upside retracement. Suppose it happens, then ETH’s price interim profit target would likely be the multi-month downward sloping trendline that has served as resistance in a “falling channel” pattern, as shown in the chart below.ETH/USD weekly price chart. Source: TradingViewETH has already been rebounding after testing the demand zone (and the falling channel’s lower trendline) as support. This could push ETH/USD to reach the channel’s upper trendline near $3,000, about 50% above today’s price, by June.Extended breakdown scenarioThe worst-case scenario could be ETH breaking below the demand zone, led by macro risks and their impact on the crypto market so far in 2022.Related: $1.9T wipeout in crypto risks spilling over to stocks, bonds — stablecoin Tether in focusNotably, Ether has declined by over 50% quarter-to-date as investors reduce their exposure to the riskier assets, including Bitcoin (BTC) and tech stocks, in a higher interest rate environment.As Cointelegraph has reported, anticipations of additional stock market selloffs could weigh on cryptos, thus hurting Ether, Bitcoin, Cardano (ADA), and others in tandem.Ethereum’s correlation coefficient with tech-heavy Nasdaq 100 is at 0.90. Source: TradingViewBOOX Research, a financial blogger at SeekingAlpha, remains long-term bullish on Bitcoin, Ethereum, and the broader crypto market but believes a recovery might take several years. Excerpts from its note:”While some of the corrections from the top may have simply shaken out the ‘hot money,’ there is still a risk that a deteriorating macro environment opens the door for even deeper losses.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Will the Ethereum 2.0 update reduce high gas fees?

Purpose of Ethereum 2.0 The primary goal of the Ethereum 2.0 update is to improve scalability so that the network can handle more transactions without delays or high fees.  While the full effects of the update will not be felt until it is fully rolled out, some of the possible use cases for Ethereum 2.0 include: Supporting the large-scale enterprise adoption of blockchain technology in private corporations and businesses; Creating more decentralized autonomous organizations (DAOs)  and governance models based on smart contracts and trustless interactions; Ethereum token launches that will allow new projects to fundraise and launch their own tokens on the Ethereum network; The further expansion of nonfungible tokens (NFTs) and other digital assets that can be stored on the Ethereum blockchain; and Improved support for decentralized finance (DeFi) platforms and DApps is expected to be widely used by crypto enthusiasts and the broader public. In addition to these benefits, it is also likely that Ethereum 2.0 will enable a variety of new use cases that are not possible on the current network, such as: Distributing tokens that represent ownership rights as a method of managing royalties in the music industry; Creating a decentralized AI (artificial intelligence) ecosystem that will allow users to train and monetize their own machine learning models; Facilitating safe and inexpensive cross-border payments; Allowing supply chain managers to track product delivery without fear of tampering; Providing a decentralized platform for gaming and predictive markets; and Increased privacy and the capacity to store large amounts of data, which can be particularly helpful for storing sensitive information such as medical records and financial data. While there’s still time before the update is fully rolled out, the benefits it promises to bring are significant and could have a major impact on the way businesses and individuals use blockchain technology in the future. The Ethereum platform’s popularity The blockchain network’s popularity is expected to grow once Ethereum 2.0 is released.  Ethereum 2.0 will offer increased scalability, security and efficiency for businesses and individuals looking to take advantage of blockchain technology. Ethereum is currently one of the most well-known cryptocurrencies, alongside Bitcoin (BTC), with nearly 4 million wallets actively holding ETH as of February 2022.  The blockchain continues to be the place where most DeFi and NFT activities happen, with new DApps and projects being launched on the platform each day. According to analysts, Ethereum currently has 70% of all DeFi transactions in the cryptocurrency market, and its blockchain is used to support the majority of NFT and gaming projects. The number of transactions on the Ethereum network The average number of transactions on the Ethereum network is currently 1.1 to 1.5 million transactions per day.   These numbers are expected to increase exponentially after the launch of Ethereum 2.0, as it will allow significantly more transactions to be processed per day. At the moment, the network can only handle 15 transactions per second.  Ethereum 2.0 aims to increase this exponentially to about 150,000 by the time the upgrades are fully rolled out. If this becomes a reality, Ethereum will undoubtedly become one of the fastest and most scalable blockchains in existence, which should further increase its popularity. Addressing scalability and high gas cost concerns with Ethereum 2.0 Scalability has always been one of Ethereum’s biggest challenges. This is especially true for developers seeking to build DApps and DeFi platforms on the blockchain, as transaction costs can be prohibitively high. However, with the launch of Ethereum 2.0 (which introduces a new PoS consensus mechanism and shard chains), it will finally be possible to scale the network in a way that significantly reduces costs and facilitates faster transactions: Tips and tricks to spend less gas fees on Ethereum There are several ways you can reduce or even eliminate these costs when spending on gas fees on Ethereum.  Use wallets that support batching: Batching is a feature offered by some wallets that allows you to group multiple transactions into one, thereby reducing the amount of gas you need to spend. Use ERC20 tokens: ERC20 tokens are digital assets that run on the Ethereum blockchain and can be used in place of ETH when paying for gas. This is because they often have much lower transaction fees than ETH, itself. Use a gas price calculator: Gas prices fluctuate frequently, so it’s important to use a gas price calculator to ensure you get the best possible price for your transaction. Use a gas tracker: A gas tracker is a tool that allows you to monitor the current gas prices on the Ethereum network in real-time. This can help ensure you’re always aware of the latest prices. Use a gas station: A gas station is a website that allows you to compare the gas prices of different ETH wallets to find the best one for your needs. By following these tips, you can significantly reduce the amount of money you spend on gas when using Ethereum. This will help make it more affordable for you to use the network and participate in DeFi and other activities until such time that Ethereum 2.0 has fully launched.

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Price analysis 5/13: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

Bitcoin (BTC) rebounded sharply after dropping near its realized price of $24,000 on May 12, suggesting some bulls went against the herd and bought the dip. According to on-chain analytics platform CryptoQuant, the exchange balances declined by more than 24,335 Bitcoin on May 11 and 12, indicating that bulls may have started bottom fishing.However, macro investor Raoul Pal is not confident that a bottom has been made. In an exclusive interview with Cointelegraph, Pal said that if equity markets witness a capitulation phase, crypto markets are also likely to plunge before forming a bottom. He anticipates the current bear phase to end after the United States Federal Reserve stops hiking rates. Daily cryptocurrency market performance. Source: Coin360Bear markets are known for sharp relief rallies, which are used to lighten up long positions or initiate short positions. The price eventually turns down and makes a new low. Bottoms are only confirmed in hindsight. Therefore, investors may consider accumulating in phases rather than going all-in during a bear market. Right now, investors want to know what important overhead levels that may act as resistance. Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTBitcoin bounced off $26,700 on May 12 and formed a Doji candlestick pattern. This suggests that the selling pressure could be reducing. The recovery picked up steam on May 13 and bulls pushed the price above the psychological level at $30,000.BTC/USDT daily chart. Source: TradingViewThe relief rally may face resistance near $33,000 and again at the 20-day exponential moving average (EMA) ($34,903). If the price turns down from the overhead resistance, the bears will make another attempt to sink the BTC/USDT pair below $26,700 and resume the downtrend. If they manage to do that, the selling could accelerate and the pair may drop to $25,000 and later to $21,800. Contrary to this assumption, if bulls arrest the next decline above $28,805, it will suggest accumulation on dips. That could enhance the prospects of a break above the 20-day EMA. If that happens, the pair may rally to the 50-day simple moving average (SMA) ($40,210).ETH/USDTEther (ETH) broke below the $2,159 support on May 11 and later slipped below the psychological level at $2,000 on May 12. The bulls bought the dip to $1,800, which has started a relief rally.ETH/USDT daily chart. Source: TradingViewThe buyers will now attempt to push the price above the breakdown level at $2,159. If they succeed, the ETH/USDT pair could pick up momentum and rally to the 20-day EMA ($2,554). This is an important level to keep an eye on because a break and close above it will suggest that the decline may be over. Contrary to this assumption, if the price turns down from the current level or the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling near overhead resistance levels. The bears will then again try to sink the pair below $1,700.BNB/USDTBNB fell sharply on May 12 but the long tail on the day’s candlestick shows that bulls aggressively defended the critical support at $211. This started a relief rally that has reached the $350 to $320 resistance zone.BNB/USDT daily chart. Source: TradingViewIf bulls drive the price above $350, it will suggest that the decline may be over. The recovery could thereafter reach $413. Such a move could indicate that the BNB/USDT pair may remain stuck inside a large range between $211 and $692.Contrary to this assumption, if the price turns down from the overhead resistance zone, it will suggest that bears are active at higher levels. The price could then gradually drift down to the crucial support at $211. The bears will have to sink the price below this level to start a new downtrend that may reach $175 and later $150.XRP/USDTRipple (XRP) nosedived to $0.33 on May 12 when buying emerged. The bulls are attempting a recovery that is likely to face stiff resistance at the psychological level at $0.50.XRP/USDT daily chart. Source: TradingViewIf the price turns down from $0.50, the bears will again attempt to pull the XRP/USDT pair to $0.33. This is an important level for the bulls to defend because a break below it could result in a decline to $0.24.Conversely, if buyers propel the price above $0.50, the pair could rally to the 20-day EMA ($0.56). A break and close above this level will suggest that the bulls are back in the game. The pair could then rise to the 50-day SMA ($0.70).ADA/USDT Cardano (ADA) plunged to $0.40 on May 12, which pulled the RSI into the deeply oversold territory. The buyers bought this dip and are attempting to start a relief rally.ADA/USDT daily chart. Source: TradingViewThe ADA/USDT pair could rise to the breakdown level at $0.74, which is an important level to keep an eye on. If the price turns down from this resistance, it will suggest that the bears have not yet given up and they are selling on rallies. The pair could then retest the strong support at $0.40.Contrary to this assumption, if bulls propel the price above $0.74, it will indicate that the bears may be losing their grip. The pair could then rally to the psychological level at $1 where the bears are again expected to mount a strong defense.SOL/USDTSolana (SOL) has been in a strong downtrend for the past few days. The price dipped to $37 on May 12, which pulled the RSI deep into the oversold territory. This started a relief rally on May 13.SOL/USDT daily chart. Source: TradingViewThe bulls are likely to encounter selling in the zone between the 38.2% Fibonacci retracement level at $59 and the 50% retracement level at $66. If the price turns down from this zone, the bears will attempt to resume the downtrend by pulling the pair below $37. If they can pull it off, the SOL/USDT pair could drop to $32.Contrary to this assumption, if the price breaks above $66, the recovery could extend to the breakdown level at $75. The bulls will have to overcome this barrier to signal that the downtrend may be coming to an end. DOGE/USDTDogecoin (DOGE) plummeted to $0.06 on May 12 but a minor positive is that the bulls purchased this dip. This started a relief rally which reached near the breakdown level at $0.10.DOGE/USDT daily chart. Source: TradingViewThe long wick on the May 13 candlestick indicates that the bears are defending the $10 level aggressively. If the price turns down from this resistance, the bears will attempt to resume the downtrend by pulling the DOGE/USDT pair below $0.06. If they manage to do that, the next stop could be $0.04.Alternatively, if bulls drive the price above $0.10, the pair could rise to the 20-day EMA ($0.12). This is an important level to keep an eye on because a break and close above it could suggest the start of a stronger recovery.Related: 3 reasons why Cardano can sink further despite ADA price bouncing 58%DOT/USDTPolkadot (DOT) has been in a downtrend for the past several days. The buyers stepped in to arrest the decline near the strong support at $7 on May 12 as seen from the long tail on the day’s candlestick.DOT/USDT daily chart. Source: TradingViewThe buyers will now try to sustain the price above the breakdown level at $10.37. If they succeed, the DOT/USDT pair could rise to the 20-day EMA ($13.68). This level is likely to attract strong selling by the bears. If the subsequent decline halts at $10.37, it will indicate that the downtrend may be weakening.Conversely, if the price turns down sharply from the current level or the 20-day EMA, it will increase the possibility of a retest at $7. Below this level, the decline could extend to $5.AVAX/USDTAvalanche (AVAX) broke below the crucial support at $32 on May 11 and bears tried to resume the decline on May 12. However, the long tail on the day’s candlestick suggests strong buying at lower levels.AVAX/USDT daily chart. Source: TradingViewThe bulls have pushed the price above the breakdown level at $32, which is the first sign of strength. If the AVAX/USDT pair sustains above $32, the bulls will attempt to push the price to the overhead resistance at $51. The bears are likely to defend this level with vigor.Alternatively, if the price turns down from the 38.2% Fibonacci retracement level at $41.09, it will suggest that the sentiment remains negative and bears are selling on rallies. The pair could then again retest the strong support at $32 and later $23.SHIB/USDTShiba Inu (SHIB) plunged below the psychological level at $0.000010 on May 12 but the long tail on the day’s candlestick suggests buying at lower levels. This resulted in a recovery on May 13.SHIB/USDT daily chart. Source: TradingViewThe SHIB/USDT pair could rise to the breakdown level at $0.000017, which is likely to attract strong selling by the bears. If the price turns down from it, the bears will make another attempt to sink and sustain the pair below $0.000010.Conversely, if bulls drive the price above $0.000017 and the 20-day EMA ($0.000018), it will suggest that markets have rejected the lower levels. The pair could then rally to the 50-day SMA ($0.000023).The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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3 reasons why Cardano can sink further despite ADA price bouncing 58%

Cardano (ADA) pared a big portion of the weekly losses incurred during this week’s crypto market rout. ADA’s price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 — a 58% rally. The huge upside retracement appeared in the wake of similar price action in the crypto market with top cryptos Bitcoin (BTC) and Ether (ETH) rebounding by 23% and 25.75% since yesterday’s lows.The top ten crypto assets’ recovery in the past 24 hours. Source: MessariBut the sharp ADA recovery does not promise an extended upward continuation, at least according to three of these factors discussed below.Stock market crash far from overFirst, the price action in the Cardano and similar crypto-assets has been in lockstep with U.S. equities, especially tech stocks.Notably, the correlation coefficient between ADA and the tech-heavy Nasdaq Composite was 0.93 on May 13, meaning that any major moves in stocks would likely steer Cardano in the same direction. The correlation between Cardano and Nasdaq Composite. Source: TradingViewMoreover, the chances of Nasdaq undergoing a sharp recovery are currently slim, as analysts highlight the overstretched valuations of the Big Tech stocks and their probability of crashing further in a higher interest-rate environment.”The [ax] is hanging, rather, over high-growth tech companies,” opines Richard Waters, the Financial Times’ West Coast editor, adding: “This is where valuations became most stretched, and where the market is having the most trouble finding its nadir.”Simply put, Cardano’s persistent positive correlation with Nasdaq could result in more sharp declines in the ADA market, at least for the time bein.ADA’s “fifth wave missing”Secondly, another hint of a potential Cardano price decline comes from a technical structure highlighted by Capo of Crypto, an independent market analyst.The pseudonymous analyst notes that ADA could fall to the $0.30-$0.35 range next, given its possibility to paint the fifth and final wave of a bearish Elliott Wave setup, as shown in the chart below. ADA/USD two-day price chart featuring bearish Elliott Wave setup. Source: Capo of Crypto/TradingViewThe target range coincides with the support area from January 2021 that preceded a 850% bull run.Descending channel breakdown Thirdly, Cardano has been breaking below its multi-month descending channel in another sign of weakness.  ADA has been trending lower inside a range defined by two falling, parallel trendlines, underscoring traders’ current strategy of buying near the lower trendline and selling toward the upper trendline. But on May 12, ADA/USD broke down below the lower trendline near $0.568, showing that traders ignored the buying opportunity.Instead, buyers showed up near the $0.378-level to accumulate ADA, leading to the price rebound, as discussed above. However, the trading volume backing the recovery move was lower than during the selloff’s, indicating a weakening rebound trend.ADA/USD daily price chart. Source: TradingViewSimultaneously, the upside retracement move showed signs of further weakness after testing the descending channel’s bottom as resistance — a way of confirming the breakdown. If the bulls fail to flip the price ceiling to support, then ADA’s likelihood of continuing its prevailing downtrend will be much higher.Related: Look out below! Ethereum derivatives data hints at further downside from ETHConversely, a decisive move above the channel’s lower trendline could have ADA then test its upper trendline near $1. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Dogecoin eyes 'oversold' bounce as DOGE price gives up 90% of yearly gains

Dogecoin (DOGE) shows the prospect of undergoing a strong price rebound after reaching a technical support confluence on May 12.DOGE price 25% bounce incoming?DOGE’s 45% price drop to $0.065 this week, or a 90% decline from its record high of $0.76 a year ago, was met with decent buying sentiment. As a result, the token underwent a modest price rebound on May 12, rising over 10% to $0.078.Interestingly, Dogecoin’s upside retracement move started near a confluence of two support levels: a multi-month downward sloping trendline and a horizontal line that preceded a 335% price rally in the week ending April 19 last year. DOGE/USD weekly price chart. Source: TradingViewMeanwhile, the falling trendline is part of a broader descending channel pattern. Its multiple retests as support in the last 12 months propelled DOGE’s price toward the channel’s upper trendline. If the pattern repeats, Dogecoin’s rebound will stretch toward the upper trendline near $0.1, up almost 25% from May 12’s price.DOGE/USD weekly price chart featuring ‘descending channel’ setup. Source: TradingViewThe upside setup also picks cues from Dogecoin’s daily relative strength index (RSI), now near its oversold threshold of 30 — a buy signal. Conversely, a decisive move below the confluence support risks sending DOGE to $0.04, which has served as a strong support level in the February–April 2021 session. That would mean another 40% price decline before the next potential rebound.Elon Musk vs. Federal ReserveThe latest bout of selling in the Dogecoin market coincides with similar sentiment in the overall crypto and traditional markets, led by the Federal Reserve’s decision to tighten monetary policy aggressively to curb rising inflation.Dogecoin, much like its top-ranking rivals Bitcoin (BTC) and Ethereum (ETH), has also been hit by the panic around the de-pegging of two popular stablecoins: TerraUSD (UST) and Tether (USDT). 2/2… mainstream adoption of #cryptos not just to trade, but also to conduct everyday transactions for goods & services. The upshot: keep a close eye on the biggest stablecoin, #Tether. $USDT fell to $0.95 overnight & is back to $0.99 now.$BTC $ETH— DataTrek Research (@DataTrekMB) May 12, 2022As DOGE holds above its technical support levels, its next potential bull case is none other than Tesla CEO Elon Musk. The billionaire investor, who has emerged as one of the most celebrated Dogecoin backers, recently bought Twitter for $44 billion. Before the acquisition, he had suggested that the Twitter board start accepting DOGE as payments for their first-ever subscription service Twitter Blue.#ElonMusk bought Twitter I think #Dogecoin will benefit from it— Yuriy_Bishko (@YuriyBishko) April 26, 2022

Twitter has not revealed any plans to use DOGE for payments. But the prospect of it happening could put a price floor below the token in the coming weeks.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Price analysis 5/11: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

The crisis with Terra’s stablecoin TerraUSD (UST) and the freefall in Terra’s LUNA token has dented crypto sentiment further. Although Terraform Labs CEO Do Kwon announced a relief plan, the community does not seem too hopeful about the revival.Another hindrance to a quick improvement in sentiment is that the United States Consumer Price Index soared 8.3% from a year ago, outpacing estimates by 0.2%. Although the numbers are a tad bit lower than March’s 8.5% print, the slow deceleration suggests no respite from more tightening by the U.S. Federal Reserve.Daily cryptocurrency market performance. Source: Coin360Although the screen looks scary during capitulation, it also offers one of the best times to go against the herd and accumulate fundamentally strong cryptocurrencies at a bargain. Traders should not be in a hurry to catch a falling knife but wait for the price to stabilize and the capitulation to end before buying in a phased manner. What are the key levels of Bitcoin (BTC) and major altcoins that could attract buyers? What are the key resistance levels on the upside that may suggest a potential trend change? Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTBitcoin fell sharply on May 9 and attempted a recovery from the psychological level at $30,000 on May 10. The long wick on the day’s candlestick shows that bears are not willing to ease off and they continue to sell on minor rallies.BTC/USDT daily chart. Source: TradingViewThe bears tried to build upon their advantage on May 11 but the bulls are defending the critical level at $28,805 with all their might. This is an important level to watch out for because if it cracks, the selling could intensify. The BTC/USDT pair could then slide to $25,000 and later to $20,000.Although downsloping moving averages indicate advantage to sellers, the relative strength index (RSI) in the oversold territory suggests that a relief rally or consolidation is possible.If the price rises from the current level, it could reach the 20-day exponential moving average (EMA) ($36,214). This is an important level to keep an eye on because if the price turns down from it, the bears will again attempt to sink the pair below $28,805.Alternatively, if bulls push the price above the 20-day EMA, the pair could rally to the 50-day simple moving average (SMA) ($40,792).ETH/USDTEther (ETH) has reached a strong support level at $2,159. The bulls are likely to mount a strong defense at this level because if the support cracks, the selling could pick up momentum.ETH/USDT daily chart. Source: TradingViewIf the bounce sustains, the bulls will try to push the price to the 20-day EMA ($2,698). In a downtrend, the bears usually try to stall the relief rallies at the 20-day EMA; hence, this becomes an important level to watch out for.If the price turns down from the 20-day EMA, it will suggest that sentiment remains negative and traders continue to sell on rallies. The bears will then again attempt to sink the ETH/USDT pair below $2,159. If they succeed, the pair could plummet to $2,000 and later to $1,700.BNB/USDTBNB witnessed a sharp fall on May 9 and broke below the strong support at $320. The bulls tried to push the price back above the breakdown level on May 10 but the bears did not relent.BNB/USDT daily chart. Source: TradingViewThe bears resumed their selling on May 11 and pulled the BNB/USDT pair below the immediate support at $289. If sellers sustain the price below $289, the pair pick up momentum and plummet to $250 and later to $225. The buyers are expected to mount a strong defense in this support zone.Alternatively, if the price turns up from the current level, the bulls will again try to propel and sustain the pair above $320. If they succeed, it will indicate that the markets have rejected the lower levels. The pair could then rise to $350. XRP/USDTRipple (XRP) witnessed a tough battle between the bulls and the bears near the $0.50 level. Although bears pulled the price below $0.50 on May 9, the bulls reclaimed the level on May 10.XRP/USDT daily chart. Source: TradingViewThe bears finally overpowered the bulls on May 11 and resumed the downtrend. The XRP/USDT pair dropped to the strong support at $0.40 where the bulls are attempting to arrest the decline. If the price turns up from the current level, the bulls will again attempt to propel the pair above the overhead resistance zone between $0.50 and $0.55. Conversely, if the price slips below $0.40, the pair could witness further selling and drop to $0.34.ADA/USDT Cardano (ADA) tumbled below the strong support at $0.74 on May 9, indicating the resumption of the downtrend. The buyers attempted a recovery on May 10 but failed to hold onto higher levels.ADA/USDT daily chart. Source: TradingViewThe selling resumed on May 11 and the ADA/USDT pair dipped below the immediate support at $0.58. If the price sustains below this level, the pair could drop to the psychological level at $0.50 and thereafter to $0.40.On the contrary, if the price rises from the current level, the bulls will try to push the pair back above the breakdown level at $0.74 and the 20-day EMA ($0.77). If they succeed, the recovery could pick up momentum and the pair may rally to the critical resistance at $1.SOL/USDTSolana (SOL) dropped and closed below the strong support at $75 on May 9. This signaled the start of the next leg of the downtrend. The bulls tried to trap the aggressive bears by pushing the price back above the breakdown level at $75 on May 10 but the bears held their ground.SOL/USDT daily chart. Source: TradingViewThe selling resumed on May 11 and the bears pulled the price below the psychological support at $50. If the price sustains below $50, the SOL/USDT pair could extend its decline to $44 and thereafter to $40.Conversely, if the price turns up from the current level, the bulls will make another attempt to propel the pair above $75. If they manage to do that, the pair could rally to the 20-day EMA ($83). This is an important level to watch out for because a break and close above it could signal that the bulls are back in the game. The pair could then rally to the 50-day SMA ($101).DOGE/USDTDogecoin (DOGE) broke below the support at $0.12 on May 9 and nosedived to the psychological level at $0.10. The buyers tried to start a recovery on May 10 but hit a wall at the breakdown level at $0.12.DOGE/USDT daily chart. Source: TradingViewThe bears continued their selling and pulled the price below the crucial support at $0.10 on May 11. If the price sustains below $0.10, the DOGE/USDT pair could extend its decline to the strong support zone between $0.06 and $0.04. The bulls are likely to defend this support zone with vigor.If bulls push the price back above $0.10 quickly, it will suggest strong accumulation at lower levels. The buyers will then try to drive the pair above the 20-day EMA ($0.12). If they succeed, it will suggest that the bears may be losing their grip.Related: Avalanche drops 30% on fears Terra’s LFG will dump AVAX nextDOT/USDTPolkadot (DOT) plunged to psychological support at $10 on May 9 and attempted a recovery on May 10 but the long wick on the day’s candlestick shows selling at higher levels.DOT/USDT daily chart. Source: TradingViewThe selling resumed on May 11 and bears pulled the price below the strong support at $10. If bears sustain the breakdown, it will suggest the start of the next leg of the downtrend. The DOT/USDT pair could then extend its decline to $7.Conversely, if the price turns up from the current level and rises back above $10, it will indicate strong buying at lower levels. If bulls sustain the price above $10, the possibility of a rally to $14 increases. AVAX/USDTAvalanche (AVAX) plunged below the critical support at $51 on May 9 signaling the resumption of the downtrend. The buyers tried to push the price back above the breakdown level on May 10 but the long wick on the candlestick shows that bears flipped the $51 level into resistance.AVAX/USDT daily chart. Source: TradingViewThe AVAX/USDT pair resumed its decline on May 11 and dropped below the crucial support at $32 but the long tail on the candlestick shows strong buying at lower levels. The bulls are expected to defend the $32 level aggressively because if the support gives way, the selling could intensify and the pair may drop to $18.If the price rises from the current level, the buyers will again try to push the pair to the breakdown level at $51. A break and close above this level could be the first sign that the downtrend may be weakening. SHIB/USDTShiba Inu (SHIB) had been declining gradually for the past few days. The momentum picked up on May 9 and the price slipped below the critical support at $0.000017. This signaled the resumption of the downtrend.SHIB/USDT daily chart. Source: TradingViewThe buyers bought the dip near $0.000013 and pushed the price back above the breakdown level at $0.000017 on May 10. However, the long wick on the day’s candlestick shows that bears are selling at higher levels and attempting to flip $0.000017 into resistance.If the price sustains below $0.000013, the selling could intensify and the SHIB/USDT pair could decline to the psychological level at $0.000010. The buyers will have to push and sustain the price above the 20-day EMA ($0.000020) to indicate that the selling pressure may be weakening.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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Polygon reaches level that last time triggered a 275% MATIC price rally — will history repeat?

Polygon (MATIC) price reversed course to the upside on May 10 after testing $0.794 as its interim support, thus rising by up to 25% to $0.99. The rebound occurred a day after the token slumped over 17% to reach $0.787, its lowest level since July 2021, amid a global market crash led by the U.S. Federal Reserve’s hawkish policies.MATIC price rebounded after undergoing five days of relentless declines, attracting buyers around the same support level that had preceded a 275% bull run last year.MATIC/USD weekly price chart. Source: TradingViewA previous retest of the $0.787-level in July 2021 and the 0.786 Fib line (near $0.61) of the Fibonacci retracement graph — drawn from the $0.002-swing low to 2.86-swing high — followed up with MATIC rising to its record high of $3 by December 2021. Therefore, MATIC/USD might undergo a similar, sharp upside retracement in the coming weeks after rebounding from the same support confluence.MATIC fundamentals: then and nowHowever, a lot has changed in terms of market fundamentals between July 2021 and May 2022 that may influence MATIC traders’ behavior. For instance, MATIC’s price boom occurred last year as demand for layer-2 solutions increased due to Ethereum’s skyrocketing gas and transaction costs. As a result, popular decentralized finance (DeFI) applications, including decentralized exchange SushiSwap (SUSHI), liquidity service Curve (CRV), and lending platform Aave (AAVE), expanded their operations in the Polygon chain.The total value locked inside Polygon liquidity pools. Source: Defi Llama But 2022 has been a bad year for cryptos. The Fed’s decision to hike interest rates followed by the unwinding of their $9 trillion balance sheet has prompted investors to reduce their exposures to riskier assets. Unfortunately, the prospect of excess cash leaving the market has hurt MATIC, whose year-to-date paper returns were nearly 65% below zero as of May 10.Unfortunately, the prospect of excess cash leaving the market has hurt MATIC, whose year-to-date paper returns were nearly 65% below zero as of May 10.Related: 10-month BTC price lows spark $1B liquidation as Bitcoin eyes $35K CME futures gap”This is a risk-off across all asset classes, including crypto,” Daniel Ives, strategist at Wedbush Securities, told the Financial Times, adding that digital asset investors have “nowhere to hide.” He added:”Some investors are playing crypto like a hedge against inflation, but it’s trading like the Nasdaq’s Siamese twin.”Silver lining amid chaos: MetaOn May 9, Polygon CEO Ryan Watt announced that they are partnering with Meta to create a nonfungible token (NFT) platform for Facebook and Instagram. Meta CEO Mark Zuckerberg also confirmed that they have been “testing digital collectibles for creators and collectors to showcase NFTs on Instagram,” adding that similar features would come to Facebook soon. The hype could help MATIC form a strong price floor.Massive.— Michaël van de Poppe (@CryptoMichNL) May 9, 2022But from a technical perspective, MATIC risks bearish continuation toward $0.615 in May. MATIC/USD weekly price chart. Source: TradingViewMeanwhile, a bullish confirmation looks less likely to appear unless the token reclaims its 50-week exponential moving average (50-week EMA; the red wave) near $1.37 as support.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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