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The sharp rally in Bitcoin (BTC) and Ethereum (ETH) that continued in September signals that the bulls are back in control and altcoins will follow the rise, according to analyst Rakesh Upadhyay. Now, we start with current developments from the market in general and continue with technical analysis of the top 10 cryptocurrencies…

What happened in BTC and altcoins?

Bitcoin (BTC) broke the $50,500 resistance on Sept. 3 and Ethereum surged above the $4,000 level. This indicates a growing interest in cryptocurrencies and several legacy financial firms are taking steps to meet this growing demand. For example, Franklin Templeton, one of the world’s largest independent asset managers, has posted new job applications for middle and senior positions in crypto trading and research, according to Linke job postings. Meanwhile, in Japan, financial holg SBI Holgs plans to set up one of the first crypto funds in the country by the end of November. Tomoya Asakura, director and senior executive director at SBI, said the launch of a second fund will be explored based on the success of the first.

Now, as crypto investors and traders celebrate the recent surge, JPMorgan analystsdollars are warning their clients that the altcoin rally and NFTs are overvalued. Analisdollarser said that the share of altcoins in crypto market trading rose from 22% at the beginning of August to 33%, which is higher than the historical standard. They believe the reason is “froth and individual investor mania” rather than a reflection of a structural uptrend. So, can Bitcoin reach above $50,500? Or will the bulls turn to altcoin projects? Analyst Rakesh Upadhyay answers with his analysis of the 10 biggest cryptocurrencies…

Bitcoin (BTC) technical analysis

In Bitcoin (BTC), the bears defended the $50,500 resistance in September, but they were unable to push and sustain the price below the downtrend line. The bulls now want to push BTC price back above $50,500 and aim for $60,000. However, at these levels, bears can create stiff resistances. If the bulls can push the BTC price above these levels, their next target will be their ATH level of $64,854. If the RSI stays above the downtrend line, the negative divergence will be invalidated. However, the rising 20-day EMA shows the path of least resistance to the upside. This bullish view will be invalidated with BTC price falling to $46,083. Afterwards, the bears can pull the price up to $42.51.67.

ETH and BTC hit critical resistance levels

Ethereum (ETH) gained sharp momentum after $3,377.89 and surged above $4,000 during the day. Now, the bulls are battling for this resistance. If they reach $4,000 again, their next target will be the ATH level of $4,372.72. Of the technical indicators, the 20-day EMA and the RSI in the overbought zone are on the side of the bulls. In the positive scenario, if the bulls can push the price above the $4,372.72 ATH, intense battles for $5,000 could be made. However, this may not be easy as the bears are likely to have other plans. On the upside, the first expected resistances are located at the 4,000 and 4,372.72 regions. If the price drops from these levels and slides back to 3,700, ETH price could reach the 20-day EMA. A strong buyer pressure from this support will show that the sentiment continues to rise. Later, the bulls will try to maintain the upward movement. Conversely, a break and close below the 20-day EMA would be the first sign that the bulls are weakening.

Cardano (ADA) technical analysis

Cardano (ADA) broke above $3 on Sept. 2 but the bulls failed to sustain higher as seen from the long wick. Although the price dropped below $2.97 today, the bulls continued to buy on the dips. Now, they are trying to push the ADA price back above $3. 3. A break and close above $10 will signal a resumption of the uptrend. Then $3.50 can be targeted. The 20-day EMA (2.58) supports the bulls but the negative divergence on the RSI indicates that the bullish momentum may weaken. These levels are critical for the bulls, if they fail to push the price above the overhead resistance, the bears will attempt to push the ADA price down to the 20-day EMA. Buyer pressure from the region will indicate that the sentiment remains positive. Conversely, a break below the 20-day EMA could push the price towards the breakout level at $2.47. A break below this support could trigger a deeper correction.

BNB targets $680 in BTC rally

Binance Coin (BNB) is trading between $456 and $518.90. The September 2 candles are long wick and show bears selling above $500, but the positive sign is that the bulls are not giving up the area yet. Now, buyers will try to push the price back above $518.90. If they succeed, the BNB price could gain some momentum. The next target will be $600 and if the bulls break this hurdle, the next target of the rally will be $680. On the upside, the bears could drop BNB to $433 if the price breaks through the overhead resistance and sinks below the 20-day EMA. A break below this level will cause the bears to aim for $375 as the bulls weaken.

Ripple (XRP) technical analysis

XRP bulls pushed the price above the downtrend line on September 2, invalidating the bearish triangle pattern. The bears tried to push and sustain the price below the downtrend line today but failed. Now, if the bulls can hold the price above the downtrend line, XRP bulls will target $1.35. This level can act as a resistance and if it fails to break through, the bears’ next targets will be $1.05 and $1.35. From the technical indicators, the 20-day EMA ($1.15) has risen and the RSI has risen above 64, indicating that the bulls have the upper hand. Now, a break and close above $1.35 could clear the way for a rally to $1.66. The bears need to push the price below $1.05 to signal a reversal.

Solana (SOL) records another September high at $150.43

The bears tried to stop Solana (SOL)’s uptrend at $130, but the bulls are not giving up as they did at previous levels. They also did not allow the price to fall below $100. The bulls resumed buying on Sept. 2 and SOL price made ATH at $150.43 today. Now, vertical rallies are rarely sustainable and often result in sharp declines. On the technical side, the RSI above 88 also indicates that the SOL rally is overextended in the short term. If the price retraces from its current level, the first support of the bulls is located at the 38.2% Fibonacci retracement level at $115.75. Buyer pressure from these levels will signal strength and target $150 and above. SOL’s next target on the upside is located at $166.97. Conversely, a break below $115.75 could push the price to the 50% retracement level from the $106.29 high.

Dogecoin (DOGE) technical analysis

Dogecoin (DOGE) broke above the 20-day EMA ($0.28) on September 1 and the bulls pushed the price above the downtrend line of the falling wedge on September 2. However, the long wick on the day’s candlestick indicated that the bears were in a bearish trend. Afterwards, DOGE bounced off the 20-day EMA and the bulls pushed the price above the wedge. If buyers hold the price above $0.31, the price could rise to $0.35. Bears of this level can form strong resistance. If the price drops from $0.35, the bears will target the 20-day EMA again. Strong buyer pressure from the region will show that the sentiment is positive. Then, a break and close above $0.35 might clear the way for a rise towards $0.45. On the other hand, if the price declines and dips below the 20-day EMA, DOGE price could test the support line of the wedge.

Polkadot (DOT) technical analysis

Polkadot (DOT) has been holding above the breakout level at $28.60 for the past three days, which indicates the start of a new uptrend. The rising MAs and the RSI in the overbought zone give the bulls an advantage. Now, if buyers push the price above $33.84, the DOT could continue its upward journey with the target of $41.40, followed by $46.83. On the other hand, if the price declines from the current level, it could retest the breakout level at $28.60. Should the bulls turn this level to support, it could act as a launching pad for the next leg of the up move. A break and close below the 20-day EMA ($27.12) will be the first sign that the current breakout could be a bull trap.

Uniswap (UNI)

Uniswap (UNI) dropped from $31.41 on Sept. 2, showing that the bears have not given up yet. Price action over the past few days is forming a negative divergence on the RSI, suggesting that the bullish momentum may weaken. If the price bounces back from the 20-day EMA ($27.91), the bulls will make another attempt to push UNI price above the overhead resistance at $31.41. If they are successful, the UNI price could reach its journey to $37.52 and then $42.25. Alternatively, if the bears pull the price below the MAs, it could drop to $25 and spend a few more days in that range. A break and close below the $25 to $23.45 support zone will signal the bears are back in the game.

Chainlink (LINK)

Cryptocoin. com, Chainlink (LINK) was spending between 24 and 30 dollars in the last few days. The bulls pushed the price above the overhead resistance on Sept. 2 but failed to continue. Buyers re-stamped the decline today and pushed the price above the overhead resistance. If they can now hold the price above $30, the LINK bulls may aim for $36, and if this level is exceeded, the upside could reach the intraday high of May 19 at $43.50. From the technical indicators, the 20-day EMA ($26.99) has started to rise and the RSI is in the positive zone, indicating that the bulls have the upper hand. Contrary to this assumption, if the price drops and dips below $30, it suggests that range-bound action could continue for a few more days.


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Michael Lewis

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