Weekly technical analysis of digital currency prices; Recovering prices will not be easy
The US stock market is recovering after weeks of steady sales, and the Material Indicators analytics platform team expects the digital currency market to follow suit. They say bitcoin is likely to spend some time in a limited volatility period before a real bullish break begins.
The moving average of bitcoin intra-network transactions reached its lowest level in 9 months yesterday. This means that the dim bitcoin market in 2022 has also reduced the participation of investors in this digital currency.
Although there is a possibility of a cross-sectional price recovery in the short term, a stable recovery cannot be expected due to the large negative factors affecting the market. The International Monetary Fund (IMF) chief Kristalina Georgieva says the global economy is now facing its biggest test since World War II.
Apart from these fundamental factors, in order to become more acquainted with the conditions of digital currencies, we will examine the price chart of 10 selected currencies in the market.
Bitcoin (BTC)
On May 20, the price of Bitcoin returned above the support level of $ 28,630, which indicates that buyers have become more active near the price floor. At one point, they pushed the price above the downtrend line on the chart; But they did not succeed in maintaining their position above this level.
If buyers can get back above the downtrend line on the chart and keep the price above this level, Bitcoin will have a chance to move up to the 20-day moving average (EMA 20 – blue line in the picture) at 31%. Grow to $ 758. Sellers in this area are expected to show strong resistance, as the passage and closing of the high price candle will open the way for the bitcoin to jump to the level of 61.8% Fibonacci correction at $ 34,823.
Conversely, if the price moves below current levels or after hitting a 20-day moving average, it means that market sentiment remains negative and traders are looking for an opportunity to exit the market as the price rises. Sellers will then have to lower the price below $ 28,630 to say that Bitcoin is more likely to fall to $ 26,700 support.
Atrium (ETH)
On May 21, Atrium prices returned above the uptrend line on the chart, which means that like Bitcoin, Atrium buyers will be more active near the price floor. Buyers are now trying to push the price to the $ 2,159 resistance, and sellers are expected to strongly defend this level.
If the price moves down after hitting this resistance, it will probably hit the uptrend line on the chart again. This level is of particular importance in the short term. If Atrium returns again after reaching the uptrend line on the chart, buyers’ chances of breaking the $ 2.159 resistance will increase. In that case, the next target for buyers will be the $ 2,500 level.
Conversely, if the price falls below current levels or after hitting $ 2.159 resistance and breaks the uptrend support on the chart, Atrium will probably fluctuate somewhere between $ 2.159 to $ 1.700 in a few days. will be.
Bainance Coin (BNB)
Buyers have recently raised the price of the Binance Coin to above the 20-day moving average at $ 324, which could be the first sign of the end of the digital currency’s falling period.
If buyers continue to keep the price above the 20-day moving average, then Bainance Coin may rise to $ 350 and then the 50-day moving average (SMA 50 – red line in the picture) to $ 374. Sellers are expected to try to stop buyers once again as prices approach this area. If the price falls below the level of a simple 50-day moving average and then recovers near the 20-day moving average, buyers’ chances of overcoming this resistance will increase.
The loss of $ 320 support could invalidate this bullish outlook, which means that sellers have become more active as prices rise. After that, the price of Binance Coin may drop to $ 286.
Ripple (XRP)
On May 19, buyers were able to support the Ripple price at $ 0.38, and this digital currency is now trying to recover its value. Buyers are now looking to push the price above the 20-day moving average at $ 0.47.
The downward slope of the moving averages and the relative strength of the relative strength index (RSI) mean that the sellers have more power in the market. Sellers are expected to strongly defend the 20-day moving average resistance. In this case, the price of Ripple may continue to fall to $ 0.38.
On the other hand, if buyers can push the price above the 20-day moving average, the short-term price trend may change. Ripple will then have the opportunity to rise to the resistance area between $ 0.50 and $ 0.55. The area is expected to be a tough barrier for Ripple buyers.
In the event of a downtrend, sellers should remove the $ 0.38 support to increase the probability of the price falling to $ 0.33.
Cardano (ADA)
Cardano buyers have strongly defended $ 0.50 psychological support in recent days, indicating that demand is rising at lower price levels. They now plan to push Kardano above the 20-day moving average above $ 0.60.
If they succeed, Cardano could rise to his previous failure level of $ 0.74. Sellers are expected to resist as prices approach this level. If buyers can prevent prices from falling below the 20-day moving average, it means traders’ sentiments have shifted from a sell-off to a buy-in.
Conversely, if the price moves down from the level of the moving average, it means that sellers continue to be more active as the price rises. After that, 0.50 and 0.40 will be the next targets of the sellers.
Solana (SOL)
On May 20, buyers accumulated Solana at the $ 47 price floor and are now looking to bring the price to a 20-day moving average at $ 61. Vendors are expected to defend the area strongly.
If the price moves below the 20-day moving average, the price of Solana may fall to $ 47 support. If buyers can prevent prices from falling deeper below this level, Solana is likely to fluctuate between $ 47 and $ 60 for a few more days.
The passage and closing of the candle above the 20-day moving average price could be the first sign that buyers are returning to the market. After that, Solana can rise to the previous failure level of $ 75, and if the price candle closes somewhere below $ 47, $ 37 will be the next support for Solana.
Dodge Quinn (DOGE)
Dodge Quinn has been in a downturn for some time and is now consolidating its position. Buyers have maintained $ 0.08 support over the past few days and are now looking for a way to push the price above the $ 0.10 psychological resistance.
If the price goes down after hitting $ 0.10, it means that the sellers have turned this level into a resistance. So it is likely that the Dodge Quinn market will be accompanied by limited price fluctuations for several other aspects.
Buyers are forced to push the price above $ 0.10 to say that the downtrend has weakened. Dodge Quinn will then have the opportunity to rise to the level of $ 0.12.
On the other hand, if the price moves below the current level and falls below $ 0.08, the price of Dodge Quinn may fall to the support of $ 0.06.
Polkadat (DOT)
Polkadat buyers are trying to push the price above the resistance level of $ 10.37 and stabilize their position in that area. If they succeed, the price may rise to the $ 20.57 moving average on the 20-day moving average.
Buyers should push the price above the 20-day moving average to say that the short-term price trend has changed. Polkadat can then grow to $ 14 and $ 16 resistance; Of course, it is expected that with the price approaching these levels, the pressure of sellers will increase.
On the other hand, if the price continues to move below the 20-day moving average, it means that the general trend is still down and sellers are selling as the price rises. Sellers will then have the opportunity to lower the price below $ 9.22 and then $ 7.30.
Ulnch (AVAX)
Olench has just returned from supporting the triangular flag pattern on the chart, which means that buyers are strongly defending this support. They now want to prevent the formation of this downward pattern by pushing the price above the triangle.
If they succeed, the next target will be the price of the 20-day moving average at $ 39. This level is of particular importance, as sellers are expected to strongly defend it.
If the price goes down after hitting the 20-day moving average but does not re-enter the triangular flag pattern, we can hope for a change in the price trend. After that, buyers will once again try to break the 20-day moving average and cross the $ 51 barrier.
In contrast, falling prices from current levels or after hitting a 20-day moving average and breaking pattern support mean that sellers will become more active at price levels. After that, the Olench may fall to $ 23.
شیبا اینو (SHIB)
Sheiba Ino is trying to reach the top of the resistance of $ 0.000013; But as the long shadow of the daily candle shows, it also means that sellers want to prevent further price growth.
If the price moves below the current levels, Shiba Ino will probably fluctuate between $ 0.000010 to $ 0.000014 for a few more days. The next move will be determined by the failure of the roof or floor of this area.
Buyers’ success in crossing the 20-day moving average at $ 0.000014 will pave the way for Shiba Ino to jump to $ 0.000017, and this level is expected to re-emerge as a barrier.
On the other hand, if the price falls below the $ 0.000010 support, $ 0.0000009 will be Shiba Ino’s next target. Then it comes to lower support at $ 0.000005.