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Bitcoin, Ethereum Technical Analysis: ETH Back Below $2,000, BTC Down 6% To Start The Weekend

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Bitcoin, Ethereum Technical Analysis: ETH Back Below $2,000, BTC Down 6% To Start The Weekend

Following a strong rebound on Friday, crypto prices moved back into the red today, with BTC falling below $30,000 to start the weekend. ETH also moved lower, as its own price slipped below the $2,000 level during Saturday’s session.

Bitcoin

On Saturday, bitcoin’s price fell below $30,000, as crypto bears returned to action to start the weekend.

Following a rise of nearly 10% during Friday’s session, BTC/USD fell to an intraday low of $28,860.79 earlier today.

Saturday’s decline comes after prices hit a peak of $30,924.80 yesterday, as LUNA appeared to have finally fallen into crypto irrelevancy.

BTC/USD – Daily Chart

However, as LUNA spiked by almost 2,000% in today’s session, the volatility and general uncertainty in markets likely contributed to BTC’s selloff.

Looking at the chart, the 14-day RSI is now trading lower, as it fell to a bottom of 25, which is a floor that has not been broken since late January.

Should this change, then we will likely be looking at bitcoin trading closer to $25,000 in upcoming sessions.

Ethereum

The world’s second-largest cryptocurrency also moved lower to start the weekend, as ETH fell below $2,000 on Saturday.

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ETH/USD dropped to a bottom of $1,964.65 on Saturday, which is around 7% lower than yesterday’s peak of $2,139.71.

As a result of today’s move, prices are now hovering close to a support level of $1,950, which was the starting point of Friday’s rally.

ETH/USD – Daily Chart

Similar to BTC, the 14-day Relative Strength Index on the ethereum chart is also tracking around 25, which is its lowest point in over four months.

We have already seen prices of ETH fall to as low as $1,695 this week, and should the RSI continue to weaken, we might soon revisit these lows.

Overall, ETH is down over 26% in the last seven days, with BTC trading almost 20% lower in that same period.

Could we see these support levels broken this weekend? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Altcoins

Chainlink: Key levels where investors can considering creating a position

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Chainlink: Key levels where investors can considering creating a position

Since striking its ATH a year ago, Chainlink (LINK) bears have made a visible effort to find fresher lows. The lower peaks coupled with even lower troughs helped the sellers pierce through the 15-month trendline support (now resistance).

An extended selling vigor can now drag LINK to retest its $6.5-support before the bears give a leeway to the buyers. At press time, LINK traded at $7.37.

LINK Daily Chart

Source: TradingView, LINK/USDT

Despite upholding the $12-mark for over 16 months, the bulls failed to defend this level after the bears made the most of the fear sentiment and provoked liquidations. Without a surprise, it became viable for them to pull off a nearly 60% drop from the $12.6-level. In this bloodbath, LINK took a plunge toward its 22-month low on 12 May.

The current price was slightly overstretched from the alt’s 20 SMA (red) and 50 SMA (cyan). Also, the gap between the 20 EMA and 50 EMA has significantly risen to display a one-sided bear dominance. Historically, the buyers have bridged the overextended gap between the 20/50 EMA by propelling short-term rallies.

Rationale

Source: TradingView, LINK/USDT

The Relative Strength Index failed to show a strong revival after undertaking a bearish divergence with price. An undesired fall below the 30-mark could lead to a much-needed recovery from the oversold region.

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After peaking at its record high, the -DI line showed some slowing signs. Keeping in mind its past tendencies, it could head south and thus lead to an ease in the selling pressure.

Conclusion

Taking cognizance of the one-sided bearish dominance revealed by the indicators, a continued fall could see testing grounds at the $6.5-level. With the overstretched readings on its Moving averages, RSI and DMI, the buyers would be keen to show up in the $6.5-$7 zone. In which case, they would mount on buying volumes to snap the $8-level in the coming sessions.

Even so, an overall market sentiment analysis becomes vital to complement the technical factors to make a profitable move.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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Altcoins

This is how Polygon [MATIC] is benefiting from Terra’s [LUNA] $30 billion DeFi loss

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This is how Polygon [MATIC] is benefiting from Terra’s [LUNA] $30 billion DeFi loss

As the Terra blockchain collapsed, it decided to eliminate a lot of apps, including Anchor, which was the largest DeFi protocol on the chain at a given point. However, the protocol is worth nothing at the moment.

Furthermore, the fact that these protocols do have potential in their use cases, other chains are hounding them like vultures, including the Polygon network.

Polygon reels in Terra dApps

Bringing Terra’s protocols to Polygon will allow the latter for a faster recovery as these dApps once accounted for $30 billion, and with a more reliable chain, such a feat can be achieved again. 

The CEO of Polygon studios, Ryan Watt and founder Sandeep Nailwal further confirmed this migration of protocols from Terra to Polygon.

Ryan stated that Polygon would be allocating capital and resources against these migrations to welcome the developers and their respective communities.

Sandeep also highlighted the growth that these DApps could have on Polygon and through SUPERNET for those looking for an app-specific change, including no restrictions on Validators/Bridge and the opportunity to make their chain a rollup.

However, the announcement did not bear any positive effect on the token as MATIC was noted trading 9% below its closing price on 15 May. A similar performance was seen on the investor front, wherein a scared more than confident approach was to be seen at the moment, owing to the market crash from a few days ago.

The devastating crash of 9 May that led to the MATIC token declining by 48.89% had recovered of 23.67%, but witnessed an 8% fall on 16 May with the token trading at $0.68.

The recovery did pull MATIC out of the oversold zone, but neither helped being about a change in the investors’ conviction as they would need more than such pity rises to save over 90% of all MATIC holders from further losses.

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Given the gravity of the panic created, whales too did not hesitate to show their presence. On 13 May, whales ended up moving around more than $351 million worth of MATIC. However, none of this was actively sold in the market as per exchange balances.

However, selling activity was seen from some long-term holders who sold their holdings, in the process consuming 104.6 billion days. The only other time they sold their holdings was on 6 February, which was exactly a day before MATIC’s 16% rally.

Thus, while on-boarding developers may be easy for Polygon, bringing back investor confidence will take more than just a while.

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Analysis

Biggest Movers: XMR And SOL Higher On Monday

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Biggest Movers: XMR And SOL Higher On Monday

Despite BTC and ETH trading lower on Monday, several cryptocurrencies managed to move higher to start the week. XMR was one of the biggest climbers, with solana also moving higher during the session.

Monero (XMR)

XMR was one of Monday’s biggest gainers, as prices rose by almost $20 from lows during Sunday’s session.

Following a low of $128.00 on Sunday, XMR/USD rallied to an intraday high of $174.62 to start the trading week.

Monday’s top came as prices surged for four consecutive sessions, hitting a near one-week high in the process.

XMR/USD – Daily Chart

Since these highs earlier in the day, XMR is now trading marginally below a ceiling of $173.00, as bullish strength faded as the day progressed.

The 14-day RSI is now trading at a resistance level of its own, which is below 43.14, and should it break, we could see XMR break resistance for the first time since March.

Should this happen, prices could move closer to the $200 region. A point which monero last hit only eight days ago.

Solana (SOL)

Following three consecutive sessions of gains, SOL was also higher to start the week, however prices declined as the day progressed.

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On Sunday, SOL/USD finished the day trading at $53, and went on to hit a peak of $58.88 during the early part of Monday’s session.

Since then, prices have slipped, and as of writing SOL is currently trading at a level of $52.32, which is close to a one-week low.

SOL/USD – Daily Chart

Overall, SOL has dropped by over $100 since the beginning of April, with prices dropping below $35 last Thursday.

Looking at the chart, the 14-day Relative Strength Index is now tracking at 33.26, which is marginally below a ceiling of 36.

Bulls are likely going to attempt to push prices towards $70, if price strength moves past the current obstacle in the RSI.

Could we see runs higher in upcoming sessions? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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