Bitcoin and altcoins are expanding their rally with the new one. Meanwhile, investors are hoping gains will rise even higher after this week’s CPI data is released. Let’s take a look at the high-volume cryptos like DOGE, MATIC, BTC.
Crypto analysts worried about a new wave of bankruptcies
Crypto and exchanges are generally forward-looking. That is, investors tend to ignore the short-term negatives and even focus on the positives. With Bitcoins next halving in 2024, analysts are turning their attention to this event.
For example, no-nonsense market analyst Rekt Capital highlighted this unique market dynamic, noting that in 2015 and 2019, the year before the last two halvings, Bitcoin rose 234% and 316%, respectively. If history repeats itself, Bitcoin’s price action could surprise in 2023.
However, the near-term remains uncertain and the Consumer Price Index (CPI) data from January 12 could lead to a sharp rise in volatility. Some analysts are skeptical of the growing dominance of altcoin trading volume, which is over 50%. According to CryptoQuant author Maartunn, altcoin dominance warns of “a potential risk for further declines.”
A closely watched event is the crisis that erupted at Digital Currency Group (DCG). Galaxy Digital Holdings CEO Mike Novogratz said in an interview with CNBC on Jan. In this environment, can Bitcoin and altcoins continue to recover or will higher levels attract strong selling? To answer, let’s take a look at the technical analysis of analyst Rakesh Upadhyay.
BTC, ETH, BNB, XRP, ADA and DOGE analysis
The bears tried to stop the recovery around $17,400 on Jan. 9, but they were unable to push the price below $17,061. This shows that the bulls are buying on small dips. The price bounced back on Jan 10 and buyers are trying to extend the relief rally.
The 20-day exponential moving average ($16,982) is up and the relative strength index (RSI) is above 66, indicating that the bulls are in control. BTC price could climb to $17,850 and if this level scales, the next stop could be $18,388.
On the contrary, if the price breaks down from the current level and falls below the moving averages, it will suggest that the price could continue swinging between $16,256 and $18,388 for a few more days.
Ethereum (ETH)
Ethereum has been trading near the overhead resistance of $1,352 for the past two days. The 20-day EMA ($1,261) has started to rise and the RSI is close to the overbought zone, indicating that the path of least resistance is to the upside.
If buyers push the price above $1,352 and the downtrend line, this will suggest a potential trend change. ETH price could then rally to $1,700 and if this level scales, the next stop could be $1,800. The bears are likely to zealously defend this territory. Conversely, if the price breaks through the overhead resistance, the price of ETH could drop back to the moving averages. If this support is broken, it will suggest that it can sustain its move in the range between $1,352 and $1,150 for a while.
BNB Coin (BNB)
BNB dropped from $283 on Jan. 9, but the bears failed to push the price below the 50-day simple moving average (SMA) of $269. This shows that the bulls are buying from the lows.
The bulls will attempt to push the price back above the $283 overhead resistance. If they manage to do so, the BNB price could climb to $300 and then $318. The rising 20-day EMA ($261) and RSI in the positive zone show that the bulls have the advantage.
This positive view could be invalidated in the near term should the price slide lower and break below the moving averages. BNB could then decline to the $250 to $236 support zone. The bulls are expected to fiercely defend this level as failure to do so could result in a drop to $220.
Ripple (XRP)
XRP, which has been trading within the symmetrical triangle for the past few days, recorded a strong rise on January 11. The bulls pushed the price above the triangle and the 50-day SMA ($0.37).
If the bulls hold the price above the triangle, the probability of a rise to $0.42 increases. This level could act as a major resistance, but if buyers surpass it, XRP price could rally to $0.51. The RSI has jumped into the positive territory, indicating that the momentum is in favor of the buyers.
If the bears want to stop the up move, they will have to quickly pull the price back into the triangle. XRP price could then drop to the 20-day EMA ($0.35) and then to the support line.
Cardano (ADA)
ADA broke and closed above the downtrend line of the falling wedge formation on Jan 9 and 10, but the bulls failed to develop the advantage. This indicates hesitation to buy at higher levels.
The bears are trying to push the price back into the wedge on January 11. If they are successful, the ADA price could slide towards the moving averages. A strong rebound means aggressive buying at lower levels. The bulls will try to push the price back above $0.35. If this resistance is surpassed, the price may attempt to rise towards $0.44.
Alternatively, if the price drops and dips below the moving averages, a break above the wedge will suggest a bull trap. XRP could then drop to $0.26 and then to $0.24.
Dogecoin (DOGE)
Buyers have been trying to push Dogecoin (DOGE) for a while. Dogecoin is above the overhead resistance at $0.08 on Jan. 9, but the long wick on the candlestick indicates that the bears are fiercely holding the level.
The horizontal 20-day EMA ($0.07) and the RSI near the midpoint indicate range-bound action in the short term. DOGE price could then trade between $0.08 and $0.07 for a while. Another possibility is for the price to bounce off the current level and break above $0.08. If that happens, it will suggest that the fix may be over. DOGE could rally to $0.11 later.
Polygon (MATIC)
Polygon has been trading above the 50-day SMA ($0.84) since Jan. 9, which is a positive sign. These moves indicate that the bulls are attempting to turn the moving averages into support.
The gradually rising 20-day EMA ($0.81) and the RSI in the positive zone point to an advantage for buyers. If the bulls push the price above $0.88, MATIC price could rise to the overhead resistance at $0.97. This level could be a major hurdle but if the bulls break it, the rally could touch $1.05.
On the downside, if the bears pull the price below the 50-day SMA, the MATIC price could drop to the 20-day EMA. If this support gives way, the bears can extend the decline to $0.75.
Litecoin (LTC)
Litecoin is facing resistance near the overhead resistance of $85, but the bulls haven’t left much ground. This shows that buyers are not taking profits because they expect a higher movement.
Both moving averages are rising and the RSI is in the overbought zone, which indicates that the bulls are in command. If buyers push the price above $85, LTC price could gain momentum and rally towards the psychologically important $100 level.
On the contrary, if the price declines from the current level or fails to rise above $85, it will indicate that the bears are active at higher levels. LTC can then drop to the moving averages. A bounce from this support will indicate that the bulls are buying the lows. This could result in a retest of $85, but if the price drops below the moving averages, it could drop to $61.
Polkadot (DOT)
cryptocoin.com Polkadot climbed above the 50-day SMA ($4.92) on Jan. 9, as we covered in their analysis. However, higher levels have attracted sellers, as seen from the long wick on the candles of the day.
Although the price broke below the 50-day SMA, the bears failed to drag the price to the 20-day EMA ($4.70). This suggests that the bulls are not in a rush to exit and will try to push the price back above $5.10. If they can achieve this, the DOT price could rise to the downtrend line.
This positive view may be invalidated in the short term if the price drops and dips below the 20-day EMA. DOT price could decline further towards the critical support of $4.22.
Uniswap (UNI)
Uniswap broke above the 50-day SMA ($5.58) and closed on January 8 after trading between the moving averages for a few days. This shows that the uncertainty has been resolved in favor of the bulls.
UNI price may recover towards the resistance line of the symmetrical triangle. The bears may try to stop the recovery at this level again. If the price drops from this resistance but bounces back from the moving averages, it indicates that traders are buying on the dips. This, in turn, can increase the likelihood of a breakout above the triangle. UNI could start an upward move towards $7.80 later.
Conversely, if the price breaks below the current level or resistance line and breaks below the moving averages, this will suggest that the price may extend its stay inside the triangle for a while.
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