Home News Price analysis 10/8: BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, LUNA,...

Price analysis 10/8: BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, LUNA, UNI

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Price analysis 10/8: According to JPMorgan in a letter to its customers on Oct. 7, Bitcoin‘s (BTC) surge above $50K appears to have been aided by institutional purchasers trying to hedge their portfolio against rising inflation. Institutional investors could prefer Bitcoin over gold as a stronger inflation hedge, according to the bank’s experts.

The inclusion of cryptocurrencies to any portfolio increased returns and risk-reward performance, according to new research titled “Cryptocurrencies and the Sharpe Ratio of Traditional Investment Models” by crypto asset management firms Iconic Funds and Cryptology Asset Group.

Daily cryptocurrency market performance. Source: Coin360

In the October 2021 edition of the Bloomberg Galaxy Crypto Index, senior commodity analyst Mike McGlone indicated that $50,000 on Bitcoin may function as significant support amid fourth-quarter falls.

Is this the beginnings of a long-term rally or is the current surge in Bitcoin and altcoins attracting profit-booking by traders? Let’s look at the charts of the top ten cryptocurrencies to see what we can learn.

BTC/USDT

Profit-booking occurred on Oct. 7, but the bears were unable to push the price below the breakthrough level of $52,920, which is a good indication. The bulls attempted to continue the uptrend on Oct. 8, but the day’s candlestick’s extended wick implies selling at higher levels.

BTC/USDT daily chart. Source: TradingView

On the downside, the initial support level is $52,920, but if bears push the price below this level, the BTC/USDT pair may drop to $50,000, then to the 20-day exponential moving average (EMA) ($48,285).

The 20-day exponential moving average (EMA) is upsloping, and the relative strength index (RSI) is nearing the overbought zone, indicating a buyer’s edge. Bulls will attempt to restart the uptrend if the price bounces off the 20-day EMA.

If the pair breaks and closes over $56,100, it may be pushed to $60,000, where bears may face severe resistance. If the price falls below the 50-day simple moving average (SMA) ($47,342), this bullish outlook would be invalidated. The pair may next retest the key 100-day SMA ($42,691) support level.

ETH/USDT

Today, Ether‘s (ETH) rebound surged over the immediate resistance level of $3,676.28, although bulls may struggle to keep the price above it. The RSI is near the downtrend line, which might function as a barrier.

ETH/USDT daily chart. Source: TradingView

If the price drops below the present level, the 20-day EMA ($3,324) will be the first support. A big comeback from this level indicates that traders are buying on dips and the mood is still favourable.

This will boost the chances of a rally to $4,027.88, which is the strong overhead barrier. The ETH/USDT pair might drop below the 100-day SMA ($2,899) if the price drops below the 20-day EMA.

BNB/USDT

The bulls are having a hard time keeping Binance Coin (BNB) above $433, implying that greater levels of demand are dwindling. On Oct. 8, the price fell below $433 again, and bears are now attempting to push the market below the 20-day exponential moving average ($409).

BNB/USDT daily chart. Source: TradingView

If they are successful, the BNB/USDT pair may fall below the 100-day SMA ($379). This move might enhance the chances of the pair being range-bound between $320 and $450 for the foreseeable future.

If the price bounces off the 20-day EMA, on the other hand, it indicates that sentiment is still bullish and that traders are buying on dips. The bulls will next attempt one more time to overcome the $450 overhead obstacle before continuing northward into $518.90.

ADA/USDT

The bulls finally succeeded in pushing Cardano (ADA) over the 20-day EMA ($2.25) on Oct. 7 after numerous unsuccessful efforts in recent days. Bears are active at higher levels, as seen by the extended wick on the day’s candlestick.

ADA/USDT daily chart. Source: TradingView

The price movement over the last several days has created a symmetrical triangular pattern, indicating that bulls and bears are split on the upcoming move. The 20-day EMA ($2.47) and 50-day SMA ($2.47) are both flat, and the RSI is at 50, indicating a supply-demand equilibrium.

If the price rises and breaks over the triangle’s resistance line, this demand will shift in the bulls’ favour. The ADA/USDT pair may next climb to $2.47, where the bears may once again put up a strong fight. If this level is broken, a rally to $2.80 may be possible.

If the price breaks below the triangle’s support line, it might drop below the 100-day SMA ($1.96).

XRP/USDT

On October 7, Ripple (XRP) created an inside-day candlestick pattern, indicating that bulls and bears are undecided. On Oct. 8, the bulls attempted to settle the ambiguity to the upside but were unable to overcome the 50-day SMA ($1.09) overhead obstacle.

XRP/USDT daily chart. Source: TradingView

After bulls push the price over the 50-day SMA or bears drop the XRP/USDT pair below the 20-day EMA ($1.03), the next directional move might begin. If the 50-day SMA is broken and closed above, the way might be cleared for a surge above $1.41.

A break below the 20-day EMA, on the other hand, may send the price down below the 100-day SMA ($0.92). During the last two retests, the bulls successfully defended this support, and they may do so again.

SOL/USDT

For the previous two days, bears have been unable to push Solana (SOL) below the 20-day EMA ($153), implying that bulls are firmly holding the level. On Oct. 8, this might have enticed short-term bulls to purchase, culminating in a big comeback.

SOL/USDT daily chart. Source: TradingView

Buyers will now try to push the stock over the 61.8% Fibonacci retracement line at $177.80. If they succeed, the SOL/USDT pair may rise to $200 before attempting to break the all-time high of $216.

Alternatively, if the price drops below the 20-day EMA and breaks below the present level or above resistance, the pair might fall to the 50-day SMA ($137). The bulls may try to defend this level, but if they fail, the drop may reach $116.

DOGE/USDT

On Oct. 6, Dogecoin (DOGE) reversed course from the downtrend line, but bears were unable to push the price below the 20-day exponential moving average ($0.23), signalling that buying opportunities exist at lower levels.

DOGE/USDT daily chart. Source: TradingView

The 20-day EMA has moved up, and the RSI is positive, indicating the bulls are in control. The positive momentum will certainly increase up if buyers can push the price above the downtrend line.

The DOGE/USDT pair may next rise to $0.32, then $0.35. In contrast to this assumption, if the price returns to the downtrend line, the chances of a break below the 20-day EMA rise. After that, the pair might drop to the $0.21 to $0.19 support zone.

DOT/USDT

On Oct. 7, Polkadot (DOT) broke through resistance around $33.60, but the day’s candlestick’s lengthy wick implies selling at higher levels. Today’s inside-day candlestick pattern indicates that both bulls and bears are undecided.

DOT/USDT daily chart. Source: TradingView

The RSI has crossed the downtrend line, which has been serving as a strong barrier. The bears will attempt to drag the DOT/USDT pair below the support of $28.60 if the price falls from its present level.

The pair may surge to $38.77 if bulls push the price over $35.31. Bears may try to defend this level fiercely, but if bulls breakthrough, the pair may rise to $42.60 and then $49.78.

LUNA/USDT

On Oct. 7, the Terra protocol’s LUNA token climbed rapidly over the overhead barrier at $45.01, but the bulls were unable to cross the overhead obstacle at $49.54 on Oct. 8. This indicates that bears are still defending the psychological $50 level.

LUNA/USDT daily chart. Source: TradingView

On Oct. 8, the price fell below $45.01, and the bears are now attempting to drag the price down under the 20-day exponential moving average ($39.63). This is a crucial support for bulls since a big comeback from it will indicate that sentiment is still favourable and traders are buying on dips.

The likelihood of a break over $50 will rise as a result. If this occurs, the LUNA/USDT pair may begin the second leg of its uptrend, which may take it to $56.97 and then $65.97. A break below the 20-day EMA, on the other hand, may bring the price down to the 50-day SMA ($34.92).

UNI/USDT

The right shoulder of the bullish inverse head and shoulders pattern appears to be building on Uniswap (UNI), which will complete on a break and close above the neckline.

UNI/USDT daily chart. Source: TradingView

A rise like this may take the price to $31.41, and if it does, the rally could continue to the pattern objective of $36.98. The 20-day EMA ($24.50) has begun to rise, and the RSI is slightly over the midpoint, indicating a little bullish edge.

If the UNI/USDT pair declines from its present level and falls below a crucial support at $22, this bullish outlook will be invalidated. If this occurs, traders may flee the market, bringing the pair down below $18.

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