This Week’s Top 5 Cryptocurrencies to Keep an Eye On
BTC is still losing ground, but if the $40,000 level reclaim, LEO, MANA, KLAY, and XTZ may be among the first to recover. Russia’s massive buildup of soldiers, warplanes, and equipment, as well as extended military drills near Ukraine’s borders, has heightened fears of an imminent invasion. It could have rekindled selling in Bitcoin (BTC), which has fallen below the strong support level of $39,600.
There is a ray of hope for cryptocurrency investors among the doom and gloom because Glassnode data shows that more than 60% of Bitcoin supply does not use in any transaction for more than a year. It suggests that long-term investors are not liquidating their positions during a downtrend.
The failure of the buyers to defend the strong support at $39,600 indicates that Bitcoin continues to face strong selling by the bears. The 20-day exponential moving average ($41,193) has started to turn down, and the relative strength index (RSI) has slipped into the negative territory, suggesting that bears have the upper hand.
If the price remains below $39,600, selling may gain traction, and the BTC/USDT pair may fall to the immediate support zone between $36,250 and $35,507.01. The longer the price remains below $39,600, the more likely the price will fall.
In contrast to this assumption, if the price quickly recovers from the current level and rises above $39,600, it will indicate substantial accumulation at lower levels. The bulls will then push the price above the 20-day moving average.
Since setting a new all-time high of $8.14 on February 8, UNUS SED LEO (LEO) corrected.
The bears have dragged the price below the 50% Fibonacci retracement level at $5.74, but the bulls are defending the 20-day EMA ($5.45) aggressively. The rising 20-day EMA and an RSI in positive territory suggest that bulls have a slight advantage. If buyers push the price above $6.24, the LEO/USD pair may try to resume its upward trend. The cost of the pair could then rise to $7.
If the bulls cannot sustain the current rebound, the bears will see an opportunity and attempt to pull the pair below the 20-day EMA.
Decentraland (MANA) fell from the downtrend line on February 16, indicating that sentiment is still bearish and traders are selling on rallies to stiff resistance levels. The bears have dragged the price below the 50-day simple moving average ($2.83), allowing a possible drop to the strong support zone between $2.44 and the 200-day SMA ($2.20).
If the price bounces off this zone, the bulls will try to push the MANA/USDT pair back down to the downtrend line.
In contrast, if bears sink and keep the price below the 200-day SMA, selling could pick up, and the pair could fall to $1.70.
On February 16, Klaytn’s native cryptocurrency KLAY deviated from the downtrend line, indicating that bears continue to sell on rallies. A minor plus is that bulls have not allowed the price to fall below the 20-day moving average ($1.23). It shows that traders are buying on dips to this support level.
If the price rises and holds above the 50-day simple moving average ($1.27), the bulls will attempt to clear the overhead hurdle at the downtrend line once more. If they are successful in doing so, it will indicate a possible shift in trend. The KLAY/USDT currency pair could then rise to $1.50.
A break and close below the 20-day EMA, on the other hand, indicates that the bears have outweighed the buyers. It could reduce the price to $1.10.
Tezos (XTZ) deviated from the downtrend line on February 10, indicating that bears are continuing to sell on rallies. The bears will now try to push the price back up to the uptrend line.
Since March 2020, the uptrend line has served as solid support. As a result, the bulls are likely to defend the uptrend line aggressively. If the price recovers from this level of support, buyers will attempt to push the XTZ/USDT pair above the downtrend line.
If they are successful, the pair may indicate a possible shift in trend. Such a move could pave the way for even more negative consequences. The couple is in a bearish solid grip on the 4-hour chart. The price has fallen to the 61.8 percent Fibonacci retracement level of $3.32, which the bulls must defend. A break and close below this support raises the prospect of a fall to the 78.6 percent Fibonacci retracement level at $2.98 and then to the uptrend line.
A break and close above the 20-EMA will be the first sign of strength. Such a move indicates that the selling pressure may be easing. A break and close above the 50-SMA will signal a possible short-term trend change.
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