Saturday, April 13, 2024

Price analysis 12/22: BTC, ETH, SOL, BNB, XRP, ADA, AVAX, DOGE, DOT, LINK

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Bitcoin (BTC) is hovering near the $44,700 overhead resistance, indicating a mild resistance from the bears. However, the downside looks protected as traders expect one or more spot Bitcoin exchange-traded funds (ETFs) to be approved by the regulator in January. The event is expected to provide a massive boost to the crypto space.

The spot Bitcoin ETF approval, if it comes, will cause an initial knee-jerk reaction, but after that, traders are likely to shift their focus to the actual demand for the ETFs. Trading firm QCP Capital said in its market update that the “demand for the BTC Spot ETF at the start will fall short of market expectations.” That could tempt traders to book profits, starting a retretracement.

Daily cryptocurrency market performance. Source: Coin360

It is always difficult to predict the short-term market reaction to pivotal events, but there is a tendency for speculators to book profits. Sometimes, the profit booking happens just after the event, and on other occasions, after a spike. But after the initial pullback, the prevailing trend generally resumes.

Will Bitcoin and altcoins break above their recent local highs and extend their uptrend, or will profit-booking pull prices lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin has reached the overhead resistance at $44,700, where the bears are posing a tough challenge. A minor advantage in favor of the bulls is that they have not ceded much ground to the bears.

BTC/USDT daily chart. Source: TradingView

Although the upsloping moving averages indicate advantage to buyers, the negative divergence on the relative strength index (RSI) warrants caution. The first sign of weakness will be a close below the 20-day exponential moving average ($42,103). The BTC/USDT pair could then collapse to $37,980.

Conversely, if the price turns up from the current level or the 20-day EMA and rises above $44,700, it will indicate the start of the next leg of the uptrend. The pair could rally to $48,000 and eventually to $50,000.

Ether price analysis

The bulls pushed Ether (ETH) back above the 20-day EMA ($2,221) on Dec. 21, indicating that the correction may have ended.

ETH/USDT daily chart. Source: TradingView

If the price maintains above $2,332, the next stop is likely to be the 52-week high at $2,403. This is an important zone for the bears to protect because a break and close above it could start the next leg of the uptrend. The ETH/USDT pair may then ascend to $3,000.

On the contrary, if the price turns down from the overhead resistance, the pair could retest the vital support at $2,200. The bears will have to pull and sustain the price below $2,200 to weaken the bulls.

Solana price analysis

Solana (SOL) turned up from the 20-day EMA ($74) on Dec. 18 and soared to $100 on Dec. 22, indicating aggressive buying by the bulls.

SOL/USDT daily chart. Source: TradingView

The SOL/USDT pair is likely to witness selling near $100, but if bulls do not give up much ground, the prospects of the continuation of the uptrend remain high. If buyers drive the price above $100, the pair could start its journey toward $143.

Although the recent rise has invalidated the negative divergence, the RSI remains in the overbought territory. This suggests the rally is overheated in the near term and could result in a minor correction or consolidation. The first support on the downside is $80, and then the 20-day EMA. A slide below this level will suggest that the bulls are losing their grip.

BNB price analysis

BNB (BNB) pierced the overhead resistance of $260 on Dec. 20, signaling that the bulls are in the driver’s seat.

BNB/USDT daily chart. Source: TradingView

The bulls continued their purchase and pushed the price to the neckline of the inverse head-and-shoulders pattern on Dec. 21. This level is likely to witness strong selling by the bears, but if the bulls prevail and propel the price above the neckline, the BNB/USDT pair will complete the inverse H&S pattern. This bullish setup has a target objective of $333.

The nearest support on the downside is $260, and then the 20-day EMA ($248). The bears will have to drag the price below the 20-day EMA to weaken the bullish momentum.

XRP price analysis

XRP (XRP) has been swinging between $0.56 and $0.74, indicating indecision between the bulls and the bears.

XRP/USDT daily chart. Source: TradingView

Both moving averages have flattened out, and the RSI is near the midpoint, suggesting that the range-bound action may extend for a few more days. If the bulls push the price above the moving averages, the pair may rally to $0.67 and thereafter to $0.74. The bears are likely to defend this level with vigor.

Contrarily, if the price turns down from the moving averages, it will suggest that bears are selling on minor rallies. The XRP/USDT pair could then decline to the crucial support at $0.56.

Cardano price analysis

Cardano (ADA) rose above the minor resistance of $0.62 on Dec. 21. Buyers will next try to push the price above the 52-week high of $0.68.

ADA/USDT daily chart. Source: TradingView

However, the bears have not yet given up. They are trying to stall the recovery at $0.65. Sellers will have to pull the price below the 20-day EMA ($0.55) to signal a potential trend change. The ADA/USDT pair could then slump to $0.50.

Contrary to this assumption, if the price turns up from the current level or rebounds off the 20-day EMA, it will suggest that bulls remain in control. A break above $0.68 will open the doors for a possible rally to $0.78.

Avalanche price analysis

Avalanche (AVAX) rose above the resistance at $45.33 on Dec. 16, indicating the start of the next leg of the uptrend.

AVAX/USDT daily chart. Source: TradingView

The up-move is likely to face a minor hurdle at $50. If the price turns down from this level but does not fall below $38, it will indicate that the sentiment remains positive and traders are buying the dips. That will improve the prospects of a rally above $50. If that happens, the AVAX/USDT pair could climb to $70.

The overbought level on the RSI suggests that the rally is overheated in the near term, and a consolidation or correction is possible. The bears will have to pull the price below $38 to seize control.

Related: BTC price shirks US PCE inflation win as Bitcoin $42K buyers step in

Dogecoin price analysis

Dogecoin (DOGE) has been witnessing a tough battle between the bulls and the bears near the 20-day EMA ($0.09).

DOGE/USDT daily chart. Source: TradingView

The bulls pushed the price above the 20-day EMA on Dec. 21 but are struggling to sustain the higher levels. If bears tug the price below the 20-day EMA, the DOGE/USDT pair could drop to the 50-day SMA ($0.08) and subsequently to $0.07.

Buyers will have to propel and maintain the price above the $0.10 to $0.11 resistance zone to gain the upper hand. The pair is likely to pick up momentum above $0.11 and surge toward $0.16.

Polkadot price analysis

Polkadot (DOT) turned up from the 20-day EMA ($6.89) on Dec. 20 and soared above the $7.90 resistance on Dec. 21, indicating a continuation of the up move.

DOT/USDT daily chart. Source: TradingView

The bears are unlikely to give up easily and will try to pull the price back below $7.90 and trap the aggressive bulls. If they manage to do that, the DOT/USDT pair could witness long liquidation. The pair may then drop to the 20-day EMA.

Alternatively, if the price rebounds off $7.90, it will suggest that the bulls have flipped the level into support. That increases the possibility of a rally to $10, where the bulls are likely to face strong selling by the bears.

Chainlink price analysis

Chainlink (LINK) rose and closed above the 20-day EMA ($14.87) on Dec. 21 after repeated failed attempts, indicating that the bulls are on a comeback.

LINK/USDT daily chart. Source: TradingView

The LINK/USDT pair could rise to $16.60 and thereafter retest the 52-week high at $17.32. If bulls overcome this resistance, the pair will resume the uptrend. The next target on the upside is at $20.35.

Instead, if the price turns down sharply from the overhead resistance, it will indicate that bears remain sellers on rallies. The pair could then extend its stay inside the large range between $12.85 and $17.32 for a few more days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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