Short-term traders may have panicked due to speculation about the tightening of the U.S. Federal Reserve’s cycle and recent geopolitical developments. Glassnode analysis showed that traders who bought Bitcoin (BTC), near the November 2021 high, liquidated their positions within the past two-and-half months. High conviction investors absorbed this supply, which led to a redistribution of wealth from weak hands to stronger hands.
Because of its resilience, the crypto market continues to attract naysayers. Ken Griffin, the founder of Citadel, an American multinational hedge fund and financial service company, is the latest to change his mind. Griffin stated that Citadel would “engage in making markets for cryptocurrencies” in the coming months in an interview with Bloomberg.
Everyday cryptocurrency market performance. Source: Coin360
Stephen Ehrlich, cofounder and CEO of Voyager Digital, told Cointelegraph that Voyager Digital’s most recent quarter was its best ever. He also stated that he believes it is a great time in crypto. Ehrlich believes crypto investors will be rewarded over the long-term, just like businesses.
Is the demand likely to remain stable at higher levels? And, could the recovery continue in the coming days? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin’s recovery has now reached the overhead resistance zone, which is located between $45,821 & the resistance line for the ascending channel. The zone is expected to be defended vigorously by the bears.
Daily chart of BTC/USDT Source: TradingView
The relative strength index (RSI), which is located in the positive territory and the 20-day exponential moving Average ($40,797) has begun to rise, indicating a buyer’s advantage. The possibility of a break above this channel will increase if the bulls stop the next dip at 20-day EMA. The BTC/USDT pair could rally up to $52,088 if that happens.
Contrary to the assumption, if the price drops below the moving averages it could mean that the pair will remain inside the channel for a few days more. The channel support line may be reached and the pair could fall.
The Ether (ETH), broke above the 50-day SMA ($2,860) and closed higher on February 28. This indicates that bulls are trying to make a comeback. The moving averages are very close to completing a bullish crossover, and the RSI has moved into the positive territory. This indicates that the path to the upside is the most difficult.
Daily chart of ETH/USDT Source: TradingView
The price rebounding off the 20-day EMA ($2,824) will indicate that bulls are buying every minor dip. The resistance line for the symmetrical triangle could see the ETH/USDT pair rise. This level is likely to be defended by the bears, but if bulls overcome this barrier, it could launch a new uptrend.
The pair could also drop to the support level of the triangle if it falls below the 20-day EMA. The resumption or continuation of the downtrend could be indicated by a break below the triangle. The price action within the triangle is expected to remain volatile.
BNB broke above $506 on March 1, but the candlestick’s long wick indicates that the candlestick is selling at higher levels. On March 2, the bulls pushed the price higher than the 50-day SMA, but they are having trouble maintaining the higher levels.
Daily chart BNB/USDT TradingView
This means that bears are trying defend the 50-day SMA. Bulls may be buying dips if the price falls below the current level, but not below the 20-day EMA (391).
This will increase the chances of a break, and the pair could close above the 50 day SMA. The BNB/USDT pair may rally to $445 overhead resistance if that happens. If the price falls below the 20-day EMA, this positive outlook will be invalidated in the short-term.
On February 28, Ripple (XRP), rose to the downtrendline, where the bears are mounting an aggressive defense. The price is now down from the downtrend and could drop to the 50 day SMA ($0.72).
Daily chart of XRP/USDT Source: TradingView
The RSI close to the midpoint and the flattish moving averages suggest a balance between demand and supply. If the XRP/USDT pairs rises and continues to sustain above the downtrend line, this balance will shift in favour of buyers. This could lead to a rally to $0.85 or $0.91.
If the price falls below the 50-day SMA it will indicate that the higher levels are still seeing strong selling. If the price drops to $0.68, it could also crack at the February 24 intraday low of $0.62.
For the past two days, the bulls have tried to keep Terra’s LUNA token at $94 above the overhead resistance but the bears have prevented that from happening.
Daily chart of LUNA/USDT Source: TradingView
Bullish crossover of the moving averages has occurred, which indicates buyers are in advantage. The RSI in the overbought area suggests that the rally could be extended in short-term. Failure to push the price above $94 may attract short-term traders who will book profit.
This could push the price towards $80. This will indicate that traders are buying dips and sentiment is still positive if the price bounces off of this level. The bulls will attempt to overcome the $94 overhead hurdle. The LUNA/USDT pair may retest the $103 record if they succeed.
A break and close below $80 could indicate a deeper correction of the 20-day EMA ($68).
Solana (SOL), broke above the 20 day EMA ($95) February 28th and held the retest March 1st. Bulls are trying to push the price higher than the 50-day SMA ($106). The rally could reach $122, if they succeed.
Daily chart of SOL/USDT Source: TradingView
Bulls are making a comeback. The 20-day EMA is flattened and the RSI has risen to the positive zone. The SOL/USDT pair can complete a double bottom pattern if bulls continue to push the price higher than $122. The pair could rally to $163.
If the price falls below the 20-day EMA, this bullish view will be invalidated in the short-term. This will indicate that demand is drying up at higher levels. This could mean that the pair will remain range bound between $81-$222 for a few more days.
Cardano (ADA), has broken the $1 level. The bears must defend this level as a break or close above it would indicate that markets have rejected lower levels.
Daily chart ADA/USDT Source: TradingView
The bears could be losing their grip on the market with the flattish moving averages, and the RSI below the midpoint. The ADA/USDT pair could rally to resistance if bulls continue pushing the price above $1.
If the channel is broken, it will indicate a change in trend. The overhead resistance of $1.60 could be reached. If the price falls sharply below the current level, this bullish view will be invalidated. The support level at $0.82 may be retested in that scenario.
Related: Solana price eye $150 as SOL’s 25% increase this week puts ‘double bottom’ in play
Avalanche (AVAX), broke above the moving averages Feb. 28, and reached the downtrendline of the descending channel March 1. As they did on three occasions before, the bears are trying to defend this level.
Daily chart of AVAX/USDT Source: TradingView
If the price falls below the current level, but not below the moving averages it will indicate that sentiment has changed from buy on rallies to sell on dips.
The bulls will attempt to push the price higher than the channel once more. It will be a sign of a possible shift in trend if they succeed. The AVAX/USDT pairing could rally to $100.
Contrarily, if the price falls below the moving averages it will indicate that bears are continuing to sell aggressively. This could lead to a drop in the pair to $64.
Polkadot (DOT), broke above the 20-day EMA ($18), but bulls have not been able clear the overhead hurdle at 50-day SMA ($20). This means that bears are selling at higher levels.
Daily chart of DOT/USDT Source: TradingView
The 20-day EMA is flattened and the RSI is just below the midpoint. This suggests that there could be range-bound action in near future. The DOT/USDT pair could rise to $23 if buyers push the price higher than the 50-day SMA.
Contrary to the assumption, if the price falls below the current level or breaks below the 20 day EMA, the pair may retest the strong support zone of $16 to $14. To resume the downtrend, the bears will need to pull the price lower than this zone.
Dogecoin (DOGE), which has risen sharply from the $0.12 support, on February 28, indicates that bulls are aggressively protecting the level.
Daily chart of DOGE/USDT Source: TradingView
The relief rally is currently facing resistance at the 20 day EMA ($0.13). This suggests that bears are not giving up on their rallies and they have not given up yet.
The DOGE/USDT pair may drop to $0.12 if the price falls below the moving averages. This level is crucial for bulls to defend as a break below could push the pair towards the psychological support of $0.10.
If the price breaks through the moving averages, it could lead to a rally to $0.17 overhead resistance. This level could see bullish momentum increase.
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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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.