Category: Analysis

ETH continues its advances amidst the ongoing stagnant price trend across several cryptocurrencies. The altcoin will look to close with significant gains, will it?

Nonetheless, altcoins joined ETH in its bullish bid, and MKR is a contender for top gainers. It opened trading at $1,156 but surged after a small decline. The massive spike in buying pressure sent prices higher, and the asset broke above $1,250, peaking at $1,269. Although it sees slight corrections, it is up by over 8%.

Another on the list is LINK. Despite its utility, some traders made fun of the coin, seeing very little volatility compared to memecoins. Price actions over the last three days show that the bulls are waking up. The coin surged from $11.8 to a high of $12.3 but retraced due to small rejections. Currently up by over 3%, this will mark its third consecutive day of consistent increases.

The global cryptocurrency market cap is down by over a few percent, having slipped to a low of $2.42 trillion, and trading volume dropped by over 22% in the last 24 hours. Let’s see how some assets performed this week.

BTC/USD

Bitcoin maintains its $72k support despite several slips below it over the last 24 hours. The bulls rallied the coin after it dropped to a low of $71,313. Nonetheless, it prints a red candle, meaning it had small losses during this period.

The latest price actions come after the apex coin edged closer to breaking its all-time high. BTC started the previous intraday session at $69,900 and surged to a high of $73,600, barely $200 away from a fresh ATH. Indicators reacted to those trading actions and hints at the reason for the ongoing price struggles.

The relative strength index broke above 70 from 65 a few days ago. Trending above 70 meant that Bitcoin was overbought and due for corrections. The ensuing declines are an apparent reason for the drop. Although at $72k, the metric barely reacted, dropping to 69 at the time of writing.

The Bollinger bands mirror the same sentiment as the previously highlighted metric. During the previous intraday session, BTC surged above the upper band and closed trading above it. The slight decline saw it drop between the middle and upper bands. However, a small hike at this level will result in another breakout.

Price movement suggests that the bulls are prepping the $72k as critical support in their bid at a new ATH. Nonetheless, the apex coin’s most robust positive barrier is $68k. Failure to defend $70k will guarantee such a slip.

ETH/USD

ETH is printing a green candle amidst the growing crypto market selloff. It opened the day at $2,638 but slightly dipped to a low of $2,598 before rebounding and breaking above the $2,700 barrier. Currently trading at $2,656, the altcoin may close the day with no significant price changes.

Nonetheless, the accumulation and distribution charts point to the reason for the ongoing struggles. The market is declining as selling volume exceeds buying volume, resulting in the bulls’ inability to maintain the surge to the high. The RSI mirrors this trend as it slows its ascent due to the growing selling pressure.

The moving average convergence divergence prints positive signals amidst the fears of rising selling volume. The 12-day EMA intercepted the 26-day EMA, completing its bullish convergence. The divergence is underway which may spell further increases for the asset.

ETH will look to continue the surge, and the Bollinger bands show a small room for further uptrend. The upper band sits at $2,744, and a breakout may signal the end of the uphill movement. It has since climbed closer to breaking above the market since it almost retested the lower SMA last week. The previous day’s 3% increase saw the asset edge closer to this bid.

BNB/USD

Binance coin is printing a red candle at the time of writing as trading conditions favor the bears, who staged minor selling congestion. It lost $600 in support and dropped to a low of $594 but now trades at $597, indicating an almost 2% drop.

Indicators are responding to the ongoing selloffs. MACD shows an indecisive interception. The 12-day EMA intercepted the 26-day EMA during the previous intraday session, and a divergence was soon to follow during the current session. However, the histogram associated with the metric displays a barely visible bar, as the ongoing trend may cause a reversal.

The relative strength index shows the asset succumbing to the growing bearish sentiment as it declines. Currently at 55, the A/D mirrors its movement, dropping as supply increases and the buyers are unable to fully absorb it.

The Bollinger bands show that BNB briefly surged above the upper band during the previous intraday session. The slight decline saw it drop between the middle and upper band. However, a small hike at this level will result in another breakout.

The altcoin is exchanging close to its $590 support, and the bulls must defend the mark, as a slip may send it below $580.

SOL/USD

Almost all indicators associated with Solana are negative at the time of writing. The reading comes as it dropped from a high of $181 to $173. Although it rebounded, it is down by almost 3% over the last 24 hours.

The moving average convergence divergence prints a sell signal at the time of writing. The 12-day EMA arches downward as it starts what may become a bearish convergence. If the downtrend continues, it may intercept the 26-day EMA in the coming days. This mirrors the movement of the relative strength index, which dropped from 66 to 61.

The Bollinger band shows that the altcoin still has room for small surges. However, it retraced following its close interaction with the upper band the previous day, which also explains the reason for the ongoing declines.

The accumulation and distribution chart shows that the bulls may be exhausted following the previous four-day uptrend.

SOL is showing tremendous signs of recovery following the massive declines it experienced during the previous intraday session. However, the downtrend was not isolated, as other cryptocurrencies registered notable price downtrends during this period.

Apecoin started the session with a massive increase in buying volume, resulting in significant price surges. It was up by over 15%, breaking above $1.13, but retraced due to massive rejections. The dip continued until the memecoin retested the $1 barrier but rebounded and closed with losses exceeding 7%.

Another big loser during the previous intraday session was Arweave. It opened the session trading at $18.3 but faced massive correction following a failed attempt at surging. It dipped to a low of $15.2 before rebounding. It registered losses exceeding 12% amidst the slight recovery.

The global cryptocurrency market cap dropped by over 3% as bearish sentiment ravaged the industry. Tensions in the Middle East worsened trading conditions, resulting in downtrends.

Let’s see how the leading cryptocurrencies performed and are fairing at the time of writing.

BTC/USD

Bitcoin is down almost 3% on the weekly scale. It had a bad start to the week, as it registered notable losses on Monday. It opened trading at $69k but retraced after a failed attempt at retesting $70k. It dropped and lost the $68k support, hitting a low of $66,815 before rebounding. Nonetheless, it closed with losses exceeding 2%.

The decline continued on Wednesday as it dipped further, losing the $66k barrier. It continued downward until it hit the critical $65k. The bulls rallied the market as the coin fell to a level of notable demand concentration. It changed its trajectory and almost closed at its opening price. The uptrend continued into the next day as the apex coin had its biggest green of the week, gaining over 2%.

However, it lost all the accumulated gains during the previous intraday session, dropping to a low of $65,521 and losing over 2%. Currently printing a green candle, it is slightly up but has yet to register any significant improvements.

The moving average convergence divergence prints a sell signal at the time of writing, as it shows an ongoing bearish divergence. The 12-day EMA intercepted the 26-day EMA, which completed the negative convergence during the previous session.

The relative strength index shows the asset gaining momentum. However, it also hints that a contributing factor to the ongoing downtrend is that the asset was previously overbought. Currently at 57, the bull may gear up for a buyback.

ETH/USD

A closer look at the one-day chart shows Ethereum grappling with strong bearish dominance throughout the week. It started with notable losses on Monday, dropping by over with losses of almost 3%. It retraced from $2,745 and lost the $2,700 support before rebounding at $2,653.

The downtrend continued into the next day, as it registered another 2% decline. Wednesday was one of the worst days for the asset, as it registered one of the biggest price declines of the week. It briefly lost the $2,500 barrier, retracing to a low of $2,448, but rebounded and closed with losses of almost 4%.

ETH sank deeper during the previous intraday session, dipping below $2,500 again but hitting a new low. It briefly lost $2,400 and found support at $2,379. The bulls staged buybacks but failed to return prices above the opening price, resulting in a close with losses of almost 4%.

The RSI is at 46 after plunging to 41 on Friday. However, the average directional index is still declining amidst the ongoing buyback attempts. Bollinger bands show the altcoin making notable progress as it edges closer to returning above the middle band.

Nonetheless, MACD prints sell signals at the time of writing, as it shows an ongoing bearish divergence. The 12-day EMA intercepted the 26-day EMA, which completed the negative convergence a few days ago.

BNB/USD

Binance coin closed the previous week on a bullish note, registering small gains, reclaiming $600, and peaking at $607. It tried continuing the trend on Monday but faced massive rejections at $611. It retraced to a low of $591 due to the ensuing sell-offs but rebounded and closed with small losses.

The downtrend continued over the next two days, with the asset hitting its lowest on Wednesday. It lost the $580 support and continued downwards until it rebounded at $572. The bulls staged a comeback that yielded a small result. However, the altcoin ended the session with losses of almost 2%.

Friday was another bearish day for BNB, as it sank to its lowest of the week. It opened trading at $594 but retraced, breaking the $570 barrier before seeing a buyback at $565. The day ended with losses exceeding 3% amidst the buybacks.

The RSI is at 50 after plunging to 46 during the previous intraday session. The average directional index is on the rise amidst the ongoing buyback attempts. Bollinger bands show the altcoin making notable progress as it edges closer to returning above the middle band.

Nonetheless, MACD prints sell signals at the time of writing, as it shows an ongoing bearish divergence. The 12-day EMA intercepted the 26-day EMA, which completed the negative convergence a few days ago.

SOL/USD

Solana is seeing notable increases at the time of writing. The bulls resumed buybacks, and it is a contender for the top gainer in the top 10s. It started the day trading at $164 but dropped to a low of $162. Currently trading at $172, prices show it experienced a massive spike in buying pressure, resulting in an almost 5% surge.

The latest spike comes barely a day after SOL registered one of its most significant losses. It retraces after a failed attempt at $180. It peaked at $177 but faced massive corrections, resulting in a slip below the $160 support. Although it slightly recovered, the day ended with losses exceeding 7%.

The relative strength index dropped from 72 to 57 in response to the massive spike in selling pressure. The bulls are gradually building momentum as the metric is at 62 at the time of writing. However, the average directional index is still declining amidst the ongoing buyback attempts.

The moving average convergence divergence is printing buy signals as the 12-day EMA changed its downhill movement in response to the ongoing buyback.

ETH has been almost stagnant since Monday’s price action. During this period, the trend was a small hike or decline, ending with a return to its opening price.

Nonetheless, other altcoins registered notable price changes over the last five days. One such is Dogecoin. It is currently up by over 27% on the weekly scale. It has not printed any red candles since the week started and may close with this trend.

Other memecoins like BONK and FLOKI are currently bullish, printing over 10% of gains during the period under review.

The crypto market has been largely bullish, as the global market cap is up by over 5% this week. Valuations stabled around $2.35 trillion as several cryptocurrencies surged. Let’s see how some in the top 10 performed.

BTC/USD

Bitcoin is printing a red candle at the time of writing as the bulls take a break from the uptrend. Although not the first red of the week, prices may drop below $68k if it continues. Nonetheless, the slight decline did not notably impact its performance on the weekly scale. It is up by over 8%, the highest one-week gain since August.

BTC had an excellent start to the session, experiencing massive increases on Monday. It opened trading at $62,850 but experienced an enormous increase in buying pressure. It surged, crashing through the $64k and then $66k barrier. However, its bid at $67k yielded no result, as it faced strong rejections around $66,400.

It continued seeing slight uptrends over the next day as the bulls halted a decline to $65k and pushed prices closer to $68k. The next day, BTC finally broke the mark but failed to sustain the momentum. It continued upwards on Friday as it sparked hopes of a return to $70k but faced solid resistance at $69k.

The Bollinger bands provide some insight into why the latest price decline occurred. Following the price surges, the apex coin broke above the upper SMA on Tuesday. It continued slipping out of bounds, indicating that the run may end.

Other indicators, like the relative strength index, show the bulls struggling to regain control of the market. Although the metric saw slight declines in the last 48 hours, prices remained relatively stable. The same trend is present in the accumulation and distribution chart. There has been no significant difference in the pressure from buyers and sellers.

Nonetheless, the average direction index shows the bulls edging as it continue its surge.

ETH/USD

Ethereum is heading for another bullish close following the previous week’s performance. Nonetheless, this is the best week since the month started, as the altcoin is up by over 6%. A closer look at the daily chart shows that most increases happened on Monday.

The asset opened the first day of trading at $2,467 but had a spike in buying pressure, resulting in a massive price uptick. It flipped the $2,600 barrier but gradually lost momentum as it edged closer to $2,700. Facing strong rejections at $2,657, it closed slightly lower but registered gains exceeding 6%.

The next day, the uptrend continued but failed to break above the highlighted level due to solid resistance at $2,687. The bears staged a selloff at the peak, as some took profit. The apex altcoin lost the $2,600 support and hit a low of $2,536 before rebounding and closing at its opening price.

ETH has since failed to break out from $2,680 due to little volatility. Nonetheless, the relative strength index has been relatively stable due to an almost equal push from the bulls and bears. The A/D chart also suggests decent buying and selling volume.

Nonetheless, the average direction index is still on the uptrend, and the Bollinger bands show room for more surges.

BNB/USD

Binance coin is up by almost 4% on the weekly scale. Although the coin saw little volatility for most of the week, it exploded on the first day. However, it failed to continue the trend, resulting in its trading within a channel.

Monday kicked off with the asset at $572. It experienced a spike in buying volume, resulting in a significant price climb. It edged close to $600 but faced massive rejections at $592—the day ended with slight losses but a close with gains of almost 3%.

The uptrend continued on Tuesday as the bulls attempted a buyback after BNB declined to $580. The bullish actions yielded results, as the altcoin surged and retested $600. However, it gradually lost momentum, retracing and closing at its opening price.

The last few days of the week saw the range with no significant impact on price. Nonetheless, the Bollinger showed the bulls edging in terms of dominance. The asset continued trading between the upper and middle bands.

MACD is also reasonably silent as the 12-day EMA and 26-day EMA continue upwards. However, a closer look at the 12-day EMA shows a slight change in trajectory. RSI is largely stable as BNB sees mild buying and selling pressure. ADX continues downward as the coin loses momentum.

SOL/USD

Solana had one of its best performances on Monday. It started trading at $147 but experienced a significant explosion in buying volume, resulting in an uptrend. It broke above $150 and continued upwards until it faced strong rejections at $158. It ended the day with gains exceeding 6%.

SOL lost momentum the next day after a failed attempt at $160. It soon retraced, hitting a low of $150 before rebounding. The downtrend continued over the next few days as it lost over 4% in three days and hit a low of $147.

The Bollinger bands provide some insight into the reason for the latest price decline. Following the price surges, the altcoin recently broke above the upper SMA, and the ongoing decline is a response to this action.

Nonetheless, the average direction index shows the bulls edging as they continue their surge. The RSI is declining as the asset has seen more selloffs in the last 12 hours.

BTC is seeing one of its biggest losses this month. The bulls failed to push prices to the highs many anticipated as September comes to an end.

The downtrend is not peculiar to just the largest cryptocurrency. The global cryptocurrency market cap is seeing a massive decline as trading volume plummeted. Low interest in the market, coupled with significant selloffs, resulted in valuation dropping by over 3% in the last 24 hours.

Will the declines persist throughout this week?

Top Four Cryptocurrencies to Watch

BTC/USD

Bitcoin (BTC) is currently experiencing a significant price correction, marking its most substantial bearish trend in the past three weeks.  Starting the day at $65,602, Bitcoin faced strong selling pressure, preventing any upward movement. 

Moreover, this intense selling pressure led to a price drop, breaking through several support levels, including the critical $64,000 mark.  As of now, Bitcoin is trading at $63,500, reflecting a decline of over 3% within the last 24 hours.

Yesterday’s intraday trading pattern hinted at this potential downturn.  On-chain data analysis suggests that a decrease in ETF buying activity drives the current decline. This analysis also highlights a noticeable drop in funding rates, particularly in major markets like the US and Korea. This decline is further evidenced by the negative Coinbase premium and Korea premium, indicating reduced buying interest.

Despite the bearish sentiment, spot traders are displaying cautious optimism. This optimism stems from the observation that Bitcoin reserves on exchanges continue to dwindle, suggesting a holding sentiment among investors.  

Additionally, exchange flow remains negative, indicating that traders are transferring fewer assets onto trading platforms. This reduced activity might signal a belief that the current price dip presents a buying opportunity. 

However, it’s crucial to acknowledge the overbought Relative Strength Index (RSI), which traditionally foreshadows a potential sell-off. The on-chart RSI is also showing signs of weakness, declining from 65 to 55 in under 24 hours, directly correlating with the increase in selling volume. 

Additionally, this bearish trend is further confirmed by the declining Accumulation and Distribution chart, indicating the bulls’ inability to absorb the excess supply.

Given the predominantly bearish indicators, Bitcoin might experience further downward price movement. With the 23% Fibonacci retracement level already breached, buyers are anticipated to establish a defense line around the 38% Fibonacci level, situated at $62,600.  However, the possibility of deeper retracements, potentially driving the price as low as $61,000, cannot be disregarded. 

Importantly, a rebound in Bitcoin’s price remains possible if trading conditions improve. Should positive sentiment return, reclaiming the $65,000 level before the end of the week is achievable. 

UNI/USD

Uniswap recently surged to a high of $7.74 as it headed for $7.80 but halted its advances due to a massive drop in buying volume. The bears soon staged massive selloffs that saw prices retrace to a low of $7.27. Although its exchanging close to its opening price, indicators like the bollinger bands suggest the cryptocurrency will see more decline.

The asset surged above the upper band on Thursday, opening trading at $6.77 but rising to a high of $7.40. The trend continued over the next three days as uptrends continued. With the downtrend imminent, the bulls will look to keep the price above $7.30.

WIF/USD

Dogwifhat’s price continues to climb, defying bearish pressure. Opening at $2.45, it briefly dipped to $2.33 before rebounding to trade above its starting point. This resilience suggests strong bullish momentum, but the lack of significant gains leaves room for a potential bearish reversal.

Yesterday’s trading session echoed this struggle for dominance. Starting bearishly at $2.36, WIF plummeted to $2.25 before surging to $2.57, failing to break the $2.60 resistance level. This back-and-forth highlights the uncertainty in the market.

Despite trading above the Bollinger band since Tuesday’s breakout, WIF hasn’t seen the anticipated trend reversal. However, current market activity suggests this correction could begin this week. The momentum indicator supports this, showing a weakening upward trend.

Adding to the bearish signals, the relative strength index (RSI) sits at 78. This marks the fifth consecutive day above the overbought threshold of 70, signaling a much-needed correction.

All signs point towards a potential downturn within the next 24 hours. WIF may drop to the 23% Fibonacci retracement level at $2.32. Failure to hold above this support could trigger a further decline to the 38% level. Although historical price action suggests a potential halt at this point, breaching this level could send WIF plummeting below $2.

SOL/USD

Solana’s recent trading activity reveals growing selling pressure, potentially ending its impressive uptrend. While losses remain minimal, they highlight increasing bearish sentiment as traders begin to secure profits.

Mirroring this shift, the relative strength index is on a downtrend, losing almost 2 points in the previous trading session alongside the declining momentum indicator. This suggests waning strength in SOL’s upward trajectory.

Adding fuel to the bearish fire, SOL’s recent price surges, while impressive, failed to break through the upper limit of the Bollinger band. The chart reflects this struggle with multiple wicks protruding beyond the band. This often signals an impending trend reversal, but in this case, the Bollinger band has widened to accommodate the volatile price action.

Despite this, most indicators paint a bearish picture for SOL’s immediate future. Bulls will aim to defend the $154 support, a crucial level representing both the 23% Fibonacci retracement and a zone of concentrated buying pressure. However, previous price action shows a possibility of slipping below this support.

Should this occur, SOL might revisit the $150 support, a level historically proven to be vulnerable. This level’s proximity to the 38% Fibonacci retracement at $149 indicates a minor demand zone. However, traders might find more security at the $142 support, a level that has successfully repelled previous bearish attacks.