Kategorie: Crypto Analysis

Before the crypto crash this week, Cardano had shown outstanding upward momentum. The coin at one time even rallied by nearly 50% in less than a week. But as weakness sips through the market, all these incredible gains have now reversed. Despite this, ADA has managed to establish a strong trading range. Here are some highlights:

• ADA has traded between $0.47 and $0.55 over the last few days

• This range will likely hold as the broader crypto market slightly recovers

• Cardano however faces very limited upside to overcome the $0.55 barrier.

Data Source: TradingView 

Where will ADA go from here?

The trading range established by ADA over the past few days represents short-term support and resistance. It is likely that the coin will trade within this range for days before it finds direction. 

However, we do not see a lot of downsides. In fact, if ADA was to lose the $0.47 support, it could still find a lot of resilience at $0.435. This is actually a longer-term support zone for the coin. Also, if there is a period of price consolidation above $0.55, we may see a short-term rally for ADA. 

But it doesn’t seem like the coin has so much room to run. In fact, the best-case scenario for bulls would be to try and reclaim the highs of $0.77. Here, ADA will face major sell-off pressure and will likely retreat even before it attempts to test $1.

When will ADA return above $1?

It seems like yesterday when we were all looking at ADA above $1. The coin was projected to hit at least $5 by the end of the year. However, this is now highly unlikely since ADA would need to grow more than 10x to hit that estimate.

But a return above $1 is not out of the cards. Sentiment will however need to improve drastically over the month ahead for this to happen.

The post Cardano establishes a strong trading range despite pressure appeared first on CoinJournal.

The cryptocurrency market could end the week in the negative zone as the leading cryptocurrencies record huge losses.

The cryptocurrency market has been down by less than 1% over the past 24 hours. The market has lost hundreds of billions of dollars since the start of the week and looks prime to end the week in a bearish trend.

The total market cap currently stands at $900 billion, down by more than 65% from the all-time high of $3 trillion.

Bitcoin is down by less than 1% over the past 24 hours and currently trades above $20k per coin. The leading cryptocurrency reached an all-time high of $69k seven months ago but is now struggling to defend its price above $20k.

Ether remains the second-largest cryptocurrency by market cap. ETH is down by nearly 2% in the last 24 hours and currently trades around $1,100 per coin.

There is no catalyst behind Ether’s ongoing poor performance except the bearish trend affecting the broader cryptocurrency market. 

If the trend continues, ETH could struggle to defend its price above the $1,000 psychological level in the coming days and weeks.

Key levels to watch

The ETH/USD 4-hour chart is bearish as Ethereum has been underperforming over the past few days. The technical indicators show that the bears are fully in control at the moment.

The MACD line is below the neutral zone, indicating bearish momentum. The 14-day RSI of 35 shows that Ether could soon enter the oversold region if the current market condition persists.

If the bears remain in control, Ether could decline below the first major resistance level at $1,088 before the end of the day. In the event of further losses, ETH could slip below the $1,000 psychological level for the first time this year. 

The post Ether could drop below $1k as the broader market records losses appeared first on CoinJournal.

Crypto has come into focus over the last few days after a major crash. Most coins have been on free fall, LINK included. But contrary to the doom and gloom out there, a complete crypto collapse is highly unlikely. LINK in particular has a real chance of stopping the downtrend, but it will need to hold a very important support level. Here are some facts to keep in mind:

• LINK dropped nearly 40% in two days this week

• The coin has recovered a bit from these losses but still remains weak

• If LINK can maintain the price above $6.10, it can avert a major downside

Data Source: TradingView 

Will the support hold?

The big question for most bulls is whether there is enough confidence in the market to avert another sell-off. After the Fed made a commitment to fight inflation with an aggressive interest rate hike, risk assets saw a major boost. But there are fears this short-term rally is not going to last.

So, for LINK to maintain the $6.10 support, it will need to at least avoid a 10% decline over the coming few days. While this is possible, based on overall sentiment in the market, there is still a risk that the support could be breached.

If this happens, the next strong support will be around $4.5. This would represent a 40% drop from the current price. But if $6.10 holds and the price action consolidates around it, LINK could surge above $8 by the end of trading this week.

Major Ecosystem updates for LINK

Although the downtrend in recent weeks has been quite disappointing, LINK has been doing very well in building up its ecosystem. New plans on staking have already been rolled out, and the project has signed major partnerships. 

From a fundamental point of view, things are looking good for LINK. The only thing needed now is for sentiment to turn around in the broader market.

The post Chainlink’s downtrend could stop if this support holds appeared first on CoinJournal.

Bitcoin hit an 18-month low over the last three days. The coin is seeing its worst sell-off in 2022 as broader weakness in the market deepens. We have seen some recovery though but it’s still not enough to reverse the downward trend. BTC could bottom with one more sell-off. Here are some pointers:

• BTC has managed to stay above $20,000 despite major pressure.

• The coin however has very limited upward momentum.

• Once the $20,000 is breached, there is very little support below that.

Data Source: TradingView

Where will BTC bottom?

Many analysts agree that the crypto correction we have seen in 2022 is far from over. The market has been quite weak, and for BTC the downtrend is inevitable. For now, the coin has shown a bit of resilience in the face of major pressure. But this will not last long. 

In fact, when you look at the long-term chart patterns, there is very little support for BTC below $20,000. The coin could easily end up bottoming at $12,000 in this bearish cycle. However, we do not think there is any downside below $12,000. So, a complete BTC crush is not probable.

Also, once the coin finds sufficient support at $12,000, it will likely attract some dip buyers who want to cash in on the drop. Besides, the $12,000 price is not that far away from the current price. It could in fact come much sooner than we expect.

Where will Bitcoin go long-term?

Right now, it’s very hard to predict where the coin will end up once 2022 is over. But it’s important to get ready for a bumpy ride. It will be hard for bitcoin to hit $50,000 this year.

This was one of the most optimistic predictions by most analysts. Instead, the coin’s fair value will likely stabilize around $36,000 or thereabout. But this will also be determined by how fast headwinds in the market ease.

The post Bitcoin could finally bottom after one more dump appeared first on CoinJournal.

The crypto market has quite literally crashed today. Everything is red as investors steer clear of risk assets for now. But despite this, it seems Dogecoin is attracting a lot of whale buyers. In fact, there is an emerging pattern of buying DOGE dips among large crypto wallets. Here is what you need to know:

• Whale accounts have purchased over 400 million Dogecoins worth $31 million in recent months

• Also, thousands of large wallets on the Binance Smart Chain hold DOGE in their portfolio

• This comes even as the meme coin dips sharply.

Data Source: TradingView

Why are Whales buying Dogecoin?

Under such market conditions, it doesn’t make sense to buy high volatile coins like DOGE. But for most large wallet holders, it seems the DOGE dip is just the perfect chance to get the coin cheaply. In fact, analysts believe that DOGE will continue to slump in the near term. 

The coin has tanked by 20% over the last 24 hours alone and is currently hovering above a crucial $0.054 support zone. It is highly likely that the coin will fall below this zone and head into a downward surge. 

DOGE has also lost nearly 95% of its value from its all-time high. But despite this, we are likely going to see a change in investor sentiment in the medium term. As such, whales are ready to be patient and ride out the bleeding right now with the hopes of a future major rally.

Should you follow whale money?

It is often a good idea to follow large wallets in your investments. But on DOGE, things are a bit complicated. For example, we are now in the middle of a very volatile period in the crypto industry. 

The value of many coins is very unpredictable. For this reason, buying DOGE now could expose you to a huge downside if the market fails to snap out of the current downtrend.

Learn where and how to buy Dogecoin here.

The post Whales buy over 400 million Dogecoins in the current dip appeared first on CoinJournal.