Price analysis 1/31: BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOGE, DOT, AVAX

Bitcoin (BTC), which was launched in 2022 on a losing note fell about 20% to its worst January performance since 2018, when it plunged 26.61%. Coinglass, an on-chain analytics resource, said that the Bitcoin price dropped by around 20%.

All eyes now turn to February, which historically favors the bulls. Two negative February closes were recorded in 2020 and 2014.

The fact that long-term hodlers are not panicking has been a positive sign of the recent price drop. Glassnode data indicates that the number coins that moved last between five and seven year ago has risen to an all-time high.

Everyday cryptocurrency market performance. Source: Coin360

Nayib Bukel, El Salvador’s President, predicted a “gigantic price rise” for Bitcoin. Bukele’s prediction was based on the assumption that if more than 50 million people want to purchase at least one Bitcoin, then there won’t be enough supply.

Could Bitcoin and other altcoins finish the month strong? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.

BTC/USDT

Bitcoin is now in a strong downtrend. A sliding market means that traders will prefer to sell rallies over dips.

Daily chart of BTC/USDT Source: TradingView

A break or close to the 20-day exponential moving mean (EMA) ($39.318) will indicate a shift in sentiment. This will signal that the demand is greater than the supply, and could lead to the 50-day simple moving average (SMA) ($43,798). The BTC/USDT pair may then move towards the 50-day simple Moving Average (SMA), which is currently at $43,791.

However, if the price drops below the current level or 20-day EMA it will indicate that bears are aggressively defending this level. The price could drop to $35,507.01. The selling could pick-up if this support breaks and the price could retest its Jan. 24 low of $32,917.17.

This is an important level that the bulls must defend as a crack could cause the pair to lose the support at $30,000.

ETH/USDT

Although Ether (ETH), is currently facing resistance at the $2,652 breakdown level, a minor plus is that bulls are not giving up much ground. This indicates that traders are buying dips, as seen in the candlestick’s long tail of Jan. 31.

Daily chart of ETH/USDT Source: TradingView

Bulls will attempt to push the price higher than $2,652 and above the critical resistance at $20,802. If they succeed, it could indicate that selling pressure is decreasing. The bulls will then look for an opening and push the pair towards the channel’s resistance line.

Contrary to what is being assumed, if the price falls below the current level or 20-day EMA, then the bears will try to pull the ETH/USDT pairing to the $2,300-2,159 support zone. To clear the way for a further fall to $1,700, the bears must sink and maintain the price below the zone.

BNB/USDT

Binance Coin (BNB), a cryptocurrency from Binance, re-entered the channel Jan. 25, but it was unable to recover near $400. The bears are still selling rallies and have not given up, this suggests.

Daily chart BNB/USDT TradingView

The BNB/USDT pair could retest the crucial support zone of $330 to $320 if bears continue to fall below the channel. Sellers hold the edge, as evidenced by the RSI in negative territory and the downsloping moving Averages.

If the $320 support is broken, the pair could fall to $250. Many traders will panic and rush for the exit. The short-term negative view of the pair will be invalidated if it breaks above the 20-day EMA. The channel’s resistance line could be reached and the pair could rise.

DA/USDT

The lack of a significant rebound from psychological support at $1 by the bulls indicates that they have not been aggressive in their buying. Cardano (ADA), which is below $1, will be a target for the bears.

Daily chart ADA/USDT Source: TradingView

Both moving averages are sloping downward and the RSI has moved into the negative zone. This indicates that the bears have taken control. Breaking below $1 could signal that the downtrend is about to begin.

The ADA/USDT currency pair could drop to $0.80, then fall to the channel’s support line. To signal a change of trend, the bulls must push the price higher than the resistance line.

SOL/USDT

Solana (SOL), has been holding steady in a tight range of $80.83 to $104.82 over the past few days. The bulls attempted to push the price higher but failed. Now the bears will attempt to seize the opportunity to bring the altcoin down to $80.83.

Daily chart of SOL/USDT Source: TradingView

The SOL/USDT pairing could resume its downward trend if they succeed. The channel support line could be reached first, where bulls might attempt to stop the fall. The pair could plummet to $66.03 if they fail in this endeavor.

The pair could extend its stay within the range if it rebounds from $80.83. If the buyers push the pair higher than the $116 breakdown level, they may gain strength.

XRP/USDT

For the past few days, Ripple (XRP), has been hovering between $0.54 to $0.65. The overhead resistance has been broken and the price may drop to the support area.

Daily chart of XRP/USDT Source: TradingView

Bears have an advantage because of the RSI and downsloping moving Averages. Watch out for $0.54 as it is the critical level that could cause a crack in the USDT/XRP pair.

This level will likely act as a strong support. A break or close below it could cause panic selling. Positively, a close above the 20 day EMA ($0.66) would be the first sign that bulls have made a comeback.

LUNA/USDT

Terra’s LUNA token has been struggling to rebound from the support line for the descending channel. This is a sign that sentiment is low and demand dry up at higher levels.

Daily chart of LUNA/USDT Source: TradingView

The sellers might see an opportunity to lower the LUNA/USDT price below the channel if the bounce fails to hold the higher levels. The pair could fall to $37.50 if they succeed. This may serve as support.

If the rebound continues, bulls may attempt to launch a relief rally that could reach the 20 day EMA ($63). The pair could turn back towards $37.50 if the price falls below this resistance. Alternatively, if bulls push it above the 20-day EMA the rally could reach its downtrend line.

Related: Ethereum price could drop to $2K due to a ‘bear flag setup

DOGE/USDT

Dogecoin (DOGE), has been holding steady at $0.13 to $0.15 over the past few days. This indicates that bulls have been buying close to the support, but are not able to push the price higher than the overhead resistance.

Daily chart of DOGE/USDT Source: TradingView

The RSI formed a bullish divergence, which indicates that selling pressure might be decreasing. If buyers fail to push the price above $0.15, bears could regroup and attempt to pull down the DOGE/USDT pairs below the support.

A closing below $0.13 could lead to further selling and push the pair towards the psychological level of $0.10. To ward off any short-term bear threat, the bulls will need to push the price higher than the 50-day SMA ($0.16).

DOT/USDT

The weak rebound of Polkadot (DOT) from the $16.81 support indicates that there is not enough buying at current levels. The path of least resistance is towards the downside, as indicated by the RSI close to the oversold territory and the moving averages that are downsloping.

Daily chart of DOT/USDT Source: TradingView

It will signify the resumption or continuation of the downtrend if bears fall and keep the price below $16.81- $15.83 support zone. The pair DOT/USDT could drop to $10.37, which would be a strong support.

Contrary to popular belief, if the price increases from its current level, the bulls will try to push the pair higher than the 20-day EMA ($20.98). The pair may break out at $22.66 if they succeed. This is where bears could pose a challenge.

VAX/USDT

Avalanche (AVAX), is currently facing strong resistance at the breakdown point at $75.50. This suggests that sentiment remains negative and bears continue to sell on rallies. Bears are in control of the market, as indicated by the RSI in negative territory and the downsloping moving Averages.

Daily chart of AVAX/USDT Source: TradingView

Now, the sellers will try to lower the price below $61.06. The AVAX/USDT pair may drop to the strong support zone of $51.04 to $47.66 if they succeed. This zone is likely to be defended by the bulls.

The possibility of a bottoming formation could be improved by a strong rebound from the support zone. However, the price will remain between $47.66-75.50 for the next few days.

A break above $75.50 will signal strength. A drop below $47.66 could indicate a resumption or continuation of the downtrend.

Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.

HitBTC exchange provides market data.

https://cointelegraph.com/news/price-analysis-1-31-btc-eth-bnb-ada-sol-xrp-luna-doge-dot-avax

Lillian Call

I am a technology and gaming writer by profession. I love NFT's and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.