Price analysis 2/2: BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOGE, DOT, AVAX

Bitcoin (BTC), which rose to above $39,000 on February 1, but the sharp fall of PayPal shares may have led to aggressive selling by short-term traders.

Long-term, however, large investors appear to view the decline as an opportunity for buying. Whalemap, an on-chain monitoring resource, stated that whales have held between 100 and 10,000 BTC during the recent decline.

Fidelity released recently a paper called “Bitcoin First,” in which it highlighted that Bitcoin is the most secure, decentralized asset and is unlikely to be replaced by any altcoins as a “monetary good.”

According to the report, Bitcoin has “the scarcity of gold and durability of gold combined with the ease and storage and transportability fiat.”

Everyday cryptocurrency market performance. Source: Coin360

According to a NYDIG report, Bitcoin’s transaction volumes at 2021 saw an almost 100% annual growth over the past five year, despite its volatility. This increased Bitcoin’s annual transaction volume by $3 trillion in 2021. It surpasses the popular credit card network American Express with $1.3 trillion in payments, and Discover which has $0.5 trillion.

Could the bulls’ accumulation be a sign that there is a bottom? Let’s look at the charts for the top 10 cryptocurrencies to see.

BTC/USDT

Bitcoin’s recovery touched the 20-day exponential moving mean (EMA) ($39.116 on February 1, which acts as a strong resistance. This indicates that traders are still selling at rallies to overhead resistance levels.

Daily chart of BTC/USDT Source: TradingView

Now, the bears will try to lower the price below $36,632.61. The aggressive bulls who bought the dip in the BTC/USDT may be able to book profits if they succeed.

Bears have the edge because of the downsloping relative strength index (RSI), and the negative territory’s moving averages.

Contrary to popular belief, if the price rebounded from $36,632.61, it will indicate that bulls are buying dips. They will then attempt to overcome the $39,600 overhead hurdle.

This is a crucial level to monitor because if the pair continues above it, the next stop could come at the 50-day simple Moving Average (SMA) ($43.421). To signal the end of the downtrend, bulls must clear this hurdle.

ETH/USDT

Ether (ETH), broke and closed above the breakdown point at $2,652 Jan. 31, but bulls couldn’t clear the overhead hurdle at $20,792. This indicates that the bears are aggressively defending this level.

Daily chart of ETH/USDT Source: TradingView

If the price falls below $2,652, this will indicate that the bears have returned to action. The pair ETH/USDT could drop to $2,476 or later to the channel’s support line. A break below $2,159 could see the downtrend resume.

If the price bounces off its current level, this will indicate that bulls are buying dips. The buyers will attempt to push the pair higher than the 20-day EMA. The pair may then move towards the resistance line if they succeed.

BNB/USDT

Binance Coin (BNB), rebounded from the support line on Jan. 31, which indicates that bulls are buying dips. The bulls were unable to push the price above the $20-day EMA ($407).

Daily chart BNB/USDT TradingView

This is a sign that there is not enough demand at higher levels. Both moving averages are falling and the RSI is still in negative territory. This indicates that bears hold the upper hand. Now, the sellers will attempt to lower the price below the channel’s support line.

The BNB/USDT pair may drop to the $330-$320 support zone if they succeed. If the price rises above the 20 day EMA and bounces off its current level, it could indicate that selling pressure is decreasing.

DA/USDT

Cardano (ADA), continues to struggle to recover from the strong support at $1. This suggests that traders are not pressing to accumulate at current levels.

Daily chart ADA/USDT Source: TradingView

The possibility of a breakout below $1 could increase if the bulls don’t push the price higher than the moving averages in the next few days. The ADA/USDT pairing could resume its downward trend if that happens.

$0.80 is the first support at the downside. The channel’s support line may be breached if this level is broken. A break above the 50-day SMA ($1.25) may lead to a retest at the channel’s resistance line.

SOL/USDT

Solana (SOL), which was discovered on Jan. 31, broke above the overhead resistance of $104.82 on February 1. The price touched the 20-day EMA ($112) February 2, which acts as a strong resistance.

Daily chart of SOL/USDT Source: TradingView

The bears want to lower the price to $104.82. If they succeed, it will indicate that bears will continue to sell aggressively at higher prices. The SOL/USDT currency pair could then test the $80.83 low.

If the price rises above $116 and bounces off its current level, it could indicate that bulls are on the rebound. The pair could rally to $130, and then to the resistance line.

XRP/USDT

Ripple (XRP), is stuck between $0.54- $0.65. The overhead resistance of $0.65 prevented the bulls from attempting to launch a relief rally. This shows that bulls are not convinced to buy at higher levels.

Daily chart of XRP/USDT Source: TradingView

The bears have the upper hand, as the RSI is close to the oversold territory and the moving averages that are downsloping indicate that they are in control. The XRP/USDT currency pair could fall to $0.54 if the price falls below $0.58.

If the price breaks below the psychological support of $0.50, it could lead to a break. If the price moves up from its current level, and breaks above the 20 day EMA ($0.66), this negative view will be invalidated in the short-term.

LUNA/USDT

Terra’s LUNA token bounced off of the support line for the descending channel on January 31 and made a Doji candlestick patterns on February 1. This suggests that demand has dried up at higher levels.

Daily chart of LUNA/USDT Source: TradingView

The uncertainty surrounding the Doji candlestick pattern is now resolved to the downside. The bears will now attempt to push the price towards the strong support of $37.50. Bears are in control of the market thanks to the RSI in negative territory and the downsloping 20 day EMA ($61.58).

Bulls may be accumulating on dips if the price rises from its current level to $54.20. The LUNA/USDT currency pair may then reach the 20 day EMA, which could act as a barrier. The first sign that bears are losing their grip is a break or close above resistance.

Related: Why did WazirX token WRX (WazirX) rise 30% after India announced its huge crypto tax?

DOGE/USDT

Dogecoin (DOGE), has been stuck between $0.13- $0.15 over the past few days. The price reached the 20-day EMA ($0.14) after failing to break below that support. This is acting as a strong resistance.

Daily chart of DOGE/USDT Source: TradingView

The price has fallen below the 20-day EMA. The bears will attempt to keep the DOGE/USDT exchange rate below $0.13. The downward-sloping moving averages, and the RSI in negative territory suggest that the path to least resistance is towards the downside.

The next stop for the pair could be $0.10 if the price falls below $0.13. If the price recovers from $0.13, it could prolong its range-bound action for a few days. To signal a change in trend, the bulls must push the price higher than the 50-day SMA ($0.16).

DOT/USDT

The aggressive bulls could have bought the Polkadot (DOT), despite the bears failing to pull it below $16.81’s strong support in the last few days. This caused a relief rally, which reached the 20-day EMA ($20.74).

Daily chart of DOT/USDT Source: TradingView

The candlestick’s February 2 candlestick shows that bears are actively defending the 20 day EMA. Sellers will attempt to lower the price and maintain it below $16.81.

This could lead to a resumption of the downtrend and the USDT/DOT pair could drop to $10.37 as the next support.

This assumption is incorrect. If the price rises from its current level and breaks above 20-day EMA, then the pair could reach the 50-day SMA ($24.63).

VAX/USDT

The Avalanche (AVAX), relief rally, stopped at the $75.50 breakdown level. This indicates that the trend is still down and bears want to take control.

Daily chart of AVAX/USDT Source: TradingView

The AVAX/USDT pair could slide towards the $51.04 support if bears push the price below $64. This level could act as a strong support again and a rebound from it may result in range-bound action for several days.

The bulls will attempt to push the price higher than $75.50 overhead resistance if the price moves up from its current level. The pair could rally towards the downtrend line in the descending triangle if they succeed.

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

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https://cointelegraph.com/news/price-analysis-2-2-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.