Feb 10 Technical Analysis: BTC, ETH, BNB, XRP, ADA, SOL, LUNA, AVAX, DOT, DOGE
Bitcoin (BTC) has rallied to $45,000, suggesting the downtrend may be coming to an end. However, the price must not rise to all-time highs in a straight line. This means that the bulls are likely to face some strong hurdles along the way and price action is likely to remain volatile.
JPMorgan Analysts said in a recent report that Bitcoin’s massive booms and busts are hampering further institutional adoption. Analysts estimate that Bitcoin’s fair value is around $38,000 at four times the volatility of gold. If volatility drops to three times that of gold, their fair value for bitcoin will rise to $50,000.
The Wells Fargo Investment Institute, the research arm of Wells Fargo Wealth and Investment Management, published posts titled “Cryptocurrency – Too Early or Too Late?” shows that the cryptocurrency market is still in its early stages. The report added that “most opportunities are ahead of us, not behind us”. […]”.
Can bitcoin and altcoins extend their rally or will profit bookings drag prices lower? Let’s study the top 10 cryptocurrencies chart to find out.
BTC technical analysis
Bitcoin broke the 50-day SMA ($42,659) on Feb 7 and hit the overhead resistance of $45.456 on Feb 8. This level proved to be a strong resistance and the price has since turned away from it.
BTC/USDT daily chart | Source: TradingView
The BTC/USDT pair formed a doji candlestick pattern on Feb. 8 that shows the indecisiveness between the bulls and the bears. However, the declining 20-day EMA ($40.751) and the Relative Strength Index (RSI) in positive territory suggest that the path of least resistance is up.
If the bulls push the price above $45.456, the pair can rally to $48,000 and then a stiff resistance at $52.088. Contrary to this assumption, if the price turns down from current levels and breaks below the 50-day SMA, the pair can drop to the 20-day EMA.
Technical analysis of the ETH
Ether (ETH) broke and closed above the channel’s resistance line on Feb. 7, a sign that the downtrend may be over. Although the bears defended the 50-day SMA ($3.208) on Feb. 8, they have yet to pull the price back into the channel.
ETH/USDT daily chart | Source: TradingView
This shows that the bulls are attempting to flip the channel’s resistance line into support. Buyers will attempt to push the price above the 50-day SMA on February 9th. If they succeed, the ETH/USDT pair could start a fresh upward move.
There is a minor resistance at $3,400 but if this level is conquered, the next stop could be $3,900. The 20-day EMA is rising ($2.924) and the RSI in positive territory is suggesting an advantage for the buyers.
This positive view will be invalidated in the short-term if the bears decline and sustain the pair below the 20-day EMA.
BNB Technical Analysis
Binance Coin (BNB) was rejected by a downtrend line on Feb. 18, showing stiff resistance from the bears. The price has fallen to the 20-day EMA ($409), which is a key support to watch.
Daily BNB/USDT Chart | Source: TradingView
If the price surges higher from the current levels, the bulls will make another attempt to push the BNB/USDT pair above the channel downtrend line and the 50-day SMA ($453). If they are successful, it suggests that the downtrend may be over. The pair can then start the march to the psychological level at $500.
Additionally, if the price breaks below the 20-day EMA, it will suggest that the trend remains negative and higher levels will attract selling from the bears. After that, the pair can drop to $390 and then extend the decline to $357.40.
XRP Technical Analysis
Ripple (XRP) rallied and closed above the 50-day SMA ($0.75) on Feb. 7, which was the first sign that the downtrend might be over. Traders are posting gains near $0.91 which could lead to a minor correction or consolidation.
XRP/USDT daily chart | Source: TradingView
The moving averages are preparing for a bullish cross and the RSI is floating in the overbought territory, suggesting that the path of least resistance is up. If the price surges up from the current levels or bounces off $0.75, the bulls will attempt to push the XRP/USDT pair above $0.91.
If successful, the bullish momentum can reach a psychological level of $1 where the bears can once again pose a major challenge. This bullish view will be invalidated if the price turns down and breaks below the moving averages.
ADA technical analysis
The bulls attempted to push Cardano (ADA) above the 50-day SMA ($1.23) on Feb 8, but the bears are holding their ground. This pulled the price back to the 20-day EMA ($1.14). The price is currently between the moving averages.
Daily ADA/USDT Chart | Source: TradingView
The RSI is just above the midpoint and the moving averages are flat, suggesting short-term range-bound action. If buyers push and sustain the price above the 50-day SMA, the pair can rally to the resistance line.
This is an important level to watch out for as a breakout and close above the channel could be the first sign that the downtrend might be over.
Conversely, if the price turns down from the current levels and falls below the 20-day EMA, the ADA/USDT pair can drop to $1.
SOL Technical Analysis
Solana (SOL) broke and closed above the $116 resistance on Feb 7, but the bulls were unable to extend the decline further. The bears pulled the price back below $116 on February 8th.
Daily SOL/USDT chart | Source: TradingView
The buyers are not giving up yet as they attempt to defend the 20-day EMA ($112). If the price recovers from the current levels, the bulls will attempt to push the SOL/USDT pair above $121.93. If they succeed, the pair could rally to the resistance line.
Conversely, if the bears sink the price below the 20-day EMA, the pair can drop to the uptrend line. If this level is also broken, the pair can drop to $94. The 20-day EMA is flat and the RSI is below the midpoint, suggesting a short-term move in the range.
LUNA technical analysis
Terra (LUNA) support rally hit a wall at the 20-day EMA ($58). This shows that sentiment is still negative and the bears are selling while rallying to strong resistance levels.
Daily LUNA/USDT Chart | Source: TradingView
If the price breaks out and sustains below $54.20, the LUNA/USDT pair may lose strength and drop to the strong support at $43.44. Such a move would suggest that the current up move is a dead cat bounce.
Even if the price recovers from $54.20, it will show that traders are not waiting for a deeper correction to buy. After that, the bulls will attempt to push the pair above the 20-day EMA. If successful, the pair can rally to the resistance line of the channel.
AVAX technical analysis
Avalanche (AVAX) hit the downtrend line on Feb 8, but the long wick on the intraday candle shows the bears are aggressively defending the overhead resistance. The bulls have quickly regrouped and are attempting to push the price above the 50-day SMA ($88).
AVAX/USDT daily chart | Source: TradingView
The RSI is approaching the 62 level where it fell on December 21st and before that on November 30th. If buyers push the RSI above this resistance, it will show an advantage in their favor. A breakout and close above the downtrend line can signal a trend reversal.
Contrary to this belief, if the price turns down from the current levels or the downtrend line, the AVAX/USDT pair can find support in the zone between the 20-day EMA ($77) and $75.50. The bears must fall below this zone to gain the upper hand.
Technical DOT analysis
Polkadot (DOT) attempted to scale above the zone of $22.66 and the 50-day SMA ($24.05) on Feb 8, but the bears are in no mood to let up. On a small plus, the bulls have not allowed the price to break below the 20-day EMA ($21.06).
DOT/USDT daily chart | Source: TradingView
Both the moving averages are flat and the RSI is close to the middle, indicating a balance between supply and demand. A breakout and close above the 50-day SMA could tip the advantage in buyers’ favor.
The DOT/USDT pair can then rally to $28 where the bears can again pose a major challenge. Alternatively, a break and close below the 20-day EMA could indicate that the pair could remain range bound for a few more days.
DOGE technical analysis
Dogecoin (DOGE) broke and closed above the 50-day SMA ($0.15) on Feb 7, but the bulls are failing to capitalize on this advantage. The bears pulled the price back below the 50-day SMA on February 8, showing that they are not giving up yet.
Daily DOGE/USDT chart | Source: TradingView
The 20-day EMA ($0.15) is the key level to watch on the downside. If the price recovers from this level, the possibility of a breakout above $0.17 will increase. In that case, the DOGE/USDT pair could rally to the overhead resistance at $0.19.
The 20-day EMA is slowly turning up and the RSI is in positive territory, showing that buyers have a slight advantage. This bullish view will be invalidated if the price turns down and falls below the 20-day EMA. The pair can then drop to the strong support at $0.13.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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