Digital Asset Insights Digital Asset Insights #87

The volatile nature of digital assets demands that we are well-informed about possible trends, through expect views and careful analysis, we are able to make the wisest choices regarding cryptocurrency investments. This is what this weekly report does, it guides you with the antecedents and helps you to make the best possible choices regarding your assets.

Bitcoin (BTC)

At the beginning of the week, Bitcoin price consolidated as it approached the lower limit of an ongoing range tightening. On Tuesday, Bitcoin price auctioned at $19,972. The bulls breached the 21-day simple – and exponential–moving averages to start the first week of October.

Bitcoin price has faced resistance from the declining trend line connecting the swing highs since May 31, which has led to the top formation at $20,500. As of Thursday, October 6, Bitcoin price traded at $20,220.

Bitcoin price fell sharply by 4% on Friday, October 7. After experiencing congestion near $20,000, the BTC price was sharply rejected and has since fallen in free-fall fashion. Towards the end of the week, Bitcoin price auctioned at $19,411.

At the end of the week, Bitcoin price was retesting the lower limit of the bear flag over the last two days. This setup forecasts an 18% downswing if BTC produces a decisive close below the flag’s lower limit and flips it into a resistance level. However, investors need to be patient and also expect a small rally before this bearish breakout triggers an 18% downswing. A minor run-up to $20,154 or $20,737 might be underway for the Bitcoin price as the RSI bounces off the 43 to 46 support level for the fourth time in under two weeks. A subsequent breakdown from the bear flag could see BTC revisit the June 18 swing low at $17,593. In case of a strong sell-off, Bitcoin price will reach the forecasted target at $15,800.

On the other hand, if Bitcoin price flips the $20,737 hurdle into a support level, it will invalidate the bearish theiss. Such a development could see BTC revisit the $22,048 and $23,473 barriers.

Ethereum (ETH)

When the week opened on October 3, Ethereum price hovered around $1,280. On Tuesday, Ethereum price exchanged hands at $1,352. Ethereum price rallied 8.7% on October 4 but continues to ricochet between the $1,423 hurdle and the $1,280 support level.

On Wednesday, Ethereum price was fighting an uphill battle. Ethereum price traded at $1,374 as the bulls attempt to reclaim the $1,400 terrain. The decentralized smart contract token successfully breached the 7-day exponential and 21-day simple moving averages. There is also an uptick in volume that accompanies the bullish price action.

On Thursday, Ethereum price fell south. Ethereum price, just like Bitcoin, suffered a blow. The bulls failed to hold support near the $1350 price level and witnessed a penny from Eiffel Style decline on smaller time frames. The decentralized smart contract token was down more than 5%. Ethereum price traded at $1,323. On Thursday, the ETH price attempted to breach through both the 8 -day and exponential moving averages but was likely to experience some chop before a true break of structure occurs.

As the week came to an end, Ethereum price tested the patience of holders as it remained bound between the $1,280 and $1,423 levels. The recent sweep of the equal lows at $1,315 was a cue for bulls to take over and trigger a quick run-up. The buyers, however, have decided not to take a step forward. As a result, Ethereum price is lingering above the $1,315 level. Investors can expect volatility, potentially favoring bulls to propel ETH to $1,383 in the end, and, in some cases, the $1,423 hurdle.

Regardless of the bullish outlook, if Ethereum price fails to hold above the $1,282 hurdle, it will indicate a weak bullish momentum. This development will invalidate the bullish thesis for XRP price and potentially trigger a correction to $1,191 via $1,234.

Ripple (Ripple)

Ripple price tagged the $0.381 to $0.433 demand zone on September 28, which catalyzed a 20% run-up in the next three days. However, exhaustion combined with deteriorating market conditions pushed XRP price down again and it was close to retesting the said demand zone on Monday, October 3.

On Tuesday, October 4, Ripple’s XRP price was up 10% on the month, as bulls were stepping into the market to hold support in the upper $0.40 levels. After an impressive 70% rally witnessed in September, XRP’s price action went range bound, creating what appears to be an ascending triangle pattern.

As of Tuesday, last week, XRP price auctioned at $0.48. The Volume Profile indicator supported this idea as the XRP price rose with less volume than the previous rally into the $0.51 swing high. On Thursday, XRP price auctioned at $0.49. Strong bearish candles entered the market and even wiped out the strongest candle in the rally near $0.47 on October 5.

As of Friday, XRP price was still indecisive. XRP price was up 15% last week as an early week rally took place from $0.44. On October 7, Ripple was struggling to hurdle the $0.50 barrier as several attempts throughout the week failed. A subtle influx of volume came into the market near the $0.50 barrier, but generally, transactions remained low during the overall uptrend display.

XRP price exchanged hands at $0.49. The bulls hovered above both the 8-day EMA and 21-day SMA, which added confusion to the mix.

As the week ended, Ripple price tagged the inverse head-and-shoulders target at $0.5440. After a 13% rally and rejection at $0.5380, the remittance token is likely to retrace to $0.4980 and rebalance the imbalance present there. A bounce from the current level should have enough momentum to propel the altcoin to $0.5990 – the midpoint of the $0.2860 to $0.9120 range. This range was formed when XRP price crashed 69% between late March and mid-June. Therefore, a surge in buying pressure after a minor pullback would make sense for a mean reversion move that would propel Ripple price to $0.5990 or roughly $0.6000.

While things are looking up for Ripple price, a breakdown of $0.4791 would invalidate the bullish thesis. In such a case, XRP price could crash 8% and revisit the $0.4400 support level.

Cardano (ADA)

Cardano price printed a mild 1% gain on Monday, October 3, but holds a promising forecast of more gains up for grabs last. Cardano price has been producing liquidity fractals since mid-June, which is essentially a sweep of the previously formed low followed by a quick run-up. So far, there have been eight liquidity runs, with the most recent one taking place on October 2. Equal lows formed at $0.425 were swept, collecting the sell-stop liquidity, and punishing early bulls.

Interestingly, Cardano price also recovered above the $0.425 level, indicating that the buyers were back. Om Wednesday, Cardano price action traded on a slither of hope as markets and several assets started to forget they were in a bear market. That sentiment, however, did not last very long as the dollar’s gains on Wednesday morning scared traders away quicker than some first-grade kids out of a haunted house at a funfair.

On Thursday, Cardano price set up a falling wedge pattern that contained four lower highs and three lower lows, connected using trend lines. This technical formation forecasts a 10% upswing to $0.476, obtained by measuring the distance between the first swing high and swing low to the breakout point at $0.430 and extrapolating it higher. Investors should prepare for an extension of this rally, especially if the market conditions improve.

On Thursday, October 8, Cardano price climbed 11% to $0.44. A falling wedge pattern forms after a big downward movement in price.

As of the end of the week, Cardano price action slipped 1% during the European trading session as ADA bulls tried to break above a red descending trend line that were traded above since September. ADA price could alternatively jump higher should US markets be able to turn the tide.

Solana (SOL)

As at the opening of the week Monday, October 3, Solana auctioned at $32.95. The price hurdled back into supportive terrain on the Relative Strength Index after losing grounds twice since May 2022. The bulls not have not yet produced a retaliation of equal or more value for sidelined investors to consider supporting.

On Friday, October 7, Solana price action was at a good point to close the week with gains, but that outlook changed as the US job numbers showed yet another beat of expectations.

SOL price is thus set to retrace in full to where price action opened on Monday morning near $31.83. The risk is that the floor under there breaks and collapses to $30.21, with price action falling below the red descending trend line. An additional risk for next week will be that price action drops to $26.01 and tests the low for this year.

Another turnaround into positive territory looks unlikely but not impossible. As the dust settles over the weekend, investors will be back in the market to buy the dip as worked on Monday and Tuesday, with some profit taking on Wednesday. Expect to see the same happening next Monday when price action could try to jump back to $35.

At the end of last week, Solana price was doddering at $32.85 while buyers battle selling pressure at $33.00. The 50-day SMA (Simple Moving Average), red and the 100-day SMA, blue, were in line to prevent further upward movement at $33.20 and $33.31, respectively.

The ascending trend line cements the bulls’ presence in the market, but the x-axis represents the dominant selling pressure around $35.00. Traders must hold on for SOL price to crack this resistance before activating their long positions. For those who prefer to lock in early profits, $35.00, $37.00, and $39.00 are potential exit positions.

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