When the market faced a decline in trend last week, the crypto bulls were nowhere to be seen. Is there any chance of a reversal?
The Dow Jones Industrial Average started the week with a three-day losing streak. It came after rising tensions over rate hikes. Other financial markets are facing similar situations, where the crypto market was unable to sustain the selling pressure, leading to a significant sell-off. This week, we will have a look at the big players to see if they are showing any signs of a relief rally.
BTC/USDT
After sustaining the strong support at $22,500 this month, Bitcoin finally broke down on Friday after weak cues from the overall markets. This resulted in heavy selling pressure which formed a huge red candle that broke the crucial support and trendline at $22,500.
After the steep fall, the coin is now consolidating in a tight range and an upper breakout crucial is very important from this point. A strong RSI divergence can be seen which is pointing towards an upper breakout. However, if greater market support is not seen, not much can be expected.
The two major areas of interest are $22,500 and $19,200. Expect a rapid move if either side is broken with a close on the 4-hourly timeframe.
Also Read: What Is the Relative Strength Index (RSI) in Stocks and Crypto?
ETH/USDT
After a strong run in the past weeks and briefly breaking the $2,000 mark, Ethereum is once again trading at $,1600. A strong supply can be seen at $1,670 which, if broken, can help push Ethereum to the next resistance at $1,800.
If Ethereum is not able to flip the supply zone soon, expect a test of the support at $1,450. At the time of writing, the coin is looking relatively stronger than Bitcoin, hence, it has the potential to outperform Bitcoin this week.
A bullish move beyond $1,800 is not likely at the moment and should only be expected once a strong breakout from the supply zone is seen.
NEAR/USDT
After falling by over 30% from its swing high, NEAR has reached a crucial demand zone which should be the zone of reversal. After a strong rally at the start of the month, NEAR has given up all of its gains and is now back trading at the demand zone at $3.9.
If the demand zone is broken, the bears will have the breakdown that they need in order to push the price to $3.6. This is why the bulls must ensure that the demand zone is not broken.
If a bounce is seen from this price level, a move to the resistance at $4.7 should be seen. It seems like a strong reversal should happen this week as a retracement is long due!
SOL/USDT
SOL is trading dangerously close to the support at $34.42. Traders must be cautious as a break of the support could lead to a strong sell-off to the demand zone at $29.
A slight RSI divergence can be seen, however, traders should only act once SOL shows signs of a reversal, as a fresh buy at this level could be a risky bet. The bulls must return now, as a break of the support could trigger the start of the next leg in the strong downtrend!
ADA/USDT
ADA is just one support away from breaking the 52-week low!
Traders should be extremely cautious as a freefall could be seen if the support at $0.43 is broken. If ADA breaks the support it is currently trading at, a straight path to a new 52-week low can be seen as there are no supports left.
A reversal at this level to the supply zone at $0.52 is very crucial as the bears will be in complete control once they are able to break the support.
FTM/USDT
FTM is consolidating in a tight range right above the support at $0.303, a strong RSI divergence can also be seen, indicating a strong reversal this week.
Traders may make for fresh buys as long as FTM is trading above the demand zone.
The areas of interest at the moment are $0.34 and $0.28. Do not expect a strong sell-off until a close below $0.28 is not seen.
You may also check out our guide to scalping vs swing trading!
Summary
A quick recap of all the coins:
- BTC is consolidating in a tight range.
- ETH is trading right under a supply zone.
- A reversal could be seen soon in NEAR’s chart.
- SOL is trading dangerously close to the support level.
- If ADA breaks the support, a new 52-week low can be set.
- FTM needs to reverse from the support level.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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