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Price Analysis 2/2: BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE, DOT, LINK
The launch of Bitcoin (BTC) exchange-traded funds (ETFs) in January failed to boost prices as traders focused on the outflows from the Grayscale Bitcoin Trust (GBTC), ignoring the net inflows into the remaining ETFs. This shows that the traders sought to sell the news and book profits on their positions.
However, a positive sign is that Bitcoin did not stay below the $40,000 level for long. This indicates that lower levels continue to attract investors. Buying on dips and selling on rallies may keep Bitcoin inside a range for a few days. The next major catalyst for Bitcoin is the halving in April.
Daily cryptocurrency market performance. Source: Coin360
Another positive in favor of the bulls is that Bitcoin has produced an average monthly gain of about 12% in February, according to CoinGlass data. Since 2013, Bitcoin has ended February with a negative monthly return only in 2014 and 2020.
Could Bitcoin repeat its strong historical performance in February? Will altcoins follow Bitcoin higher? Letโs analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been trading between the 20-day exponential moving average ($42,365) and the overhead resistance of $44,700 for the past few days.
BTC/USDT daily chart. Source: TradingView
The 20-day EMA has started to turn up gradually, and the RSI has risen into the positive territory, indicating a minor advantage to buyers. If bulls overcome the barrier at $44,700, the BTC/USDT pair could attempt a rally to $49,000. The bears are expected to defend this level aggressively.
If the price turns down and plunges below the 20-day EMA, it will indicate that bears are trying to take charge. The selling could pick up on a slump below $41,394. The pair may then descend to $40,000 and later to $37,980.
Ether price analysis
Ether (ETH) remains stuck inside the $2,100 to $2,400 range, but the bulls have not given up and are trying to kick the price above the overhead resistance.
ETH/USDT daily chart. Source: TradingView
A close above $2,400 will be the first sign of strength. That could attract further buying, pushing the ETH/USDT pair toward $2,700. If the price turns down from $2,700 but rebounds off $2,400, it will indicate that the sentiment has turned positive. That will enhance the prospects of a rally to $3,000.
On the contrary, if the price turns down sharply from the current level or $2,400, it will indicate that the pair may spend some more time inside the range. The bears will be at an advantage if the price dives below $2,100.
BNB price analysis
BNB (BNB) slipped below the 20-day EMA ($304) on Jan. 31, but the bears could not break the 50-day SMA ($297) support.
BNB/USDT daily chart. Source: TradingView
The 20-day EMA has flattened out, and the RSI is near the midpoint, signaling a balance between supply and demand. A break above the downtrend line will tilt the balance in favor of the buyers. There is a minor resistance at $322, but if crossed, the BNB/USDT pair may soar to $338.
Contrarily, if the price turns lower from the downtrend line, it will indicate that the sentiment remains negative and the bears are selling on rallies. That increases the risk of a break below $288.
Solana price analysis
Solana (SOL) turned down from the overhead resistance at $107 on Jan. 30 but rebounded off the moving averages on Feb. 1.
SOL/USDT daily chart. Source: TradingView
The bulls will try to drive the price above $107. If they can pull it off, the SOL/USDT pair will complete an inverse head-and-shoulders pattern. That may start an up move to $126, which is a strong hurdle, but if the bulls prevail, the next stop could be the pattern target of $134.
If bears want to prevent the upward move, they will have to quickly tug the price below the moving averages. The pair could drop to $80, which is likely to act as a strong support.
XRP price analysis
Sellers yanked XRP (XRP) below the $0.50 support on Jan. 31, but the long tail on the candlestick shows buying at lower levels.
XRP/USDT daily chart. Source: TradingView
A break above the $0.51 resistance could clear the path for a rally to the 20-day EMA ($0.53). The bears are expected to defend this level with vigor. If the price turns down from the 20-day EMA, the XRP/USDT pair could plunge to $0.46.
The first sign of strength will be a break and close above the 20-day EMA. The pair may then travel to the downtrend line. Buyers will have to overcome this obstacle to start a new up move to $0.67.
Cardano price analysis
Cardano (ADA) has been trading inside a descending channel pattern for several days, indicating that the bears continue selling on rallies.
ADA/USDT daily chart. Source: TradingView
The flattish 20-day EMA ($0.51) and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price maintains above the 20-day EMA, the bulls will try to push the ADA/USDT pair to the downtrend line. A break and close above this level will suggest that the short-term downtrend may be over.
The critical level to watch on the downside is $0.46, and then the support line of the channel near $0.40.
Avalanche price analysis
Avalanche (AVAX) plunged below the 20-day EMA ($34.29) on Jan. 31, but the bears could not build upon this strength.
AVAX/USDT daily chart. Source: TradingView
The price climbed above the 20-day EMA on Feb. 2, indicating that lower levels are attracting buyers. This increases the likelihood of a break above the channelโs downtrend line. If that happens, the AVAX/USDT pair could start an up move to $44 and subsequently to the crucial resistance at $50.
This positive view will be invalidated in the near term if the price reverses direction from the downtrend line and breaks below $32. That will set the stage for a decline to the support line of the channel.
Related: Bitcoin price drops 1.3% in an hour as US payrolls smash estimates
Dogecoin price analysis
Dogecoin (DOGE) has been trading below the 20-day EMA ($0.08) for the past few days, but the bears have not been able to challenge the $0.07 support. This suggests that selling dries up at lower levels.
DOGE/USDT daily chart. Source: TradingView
Buyers will try to push the price above the 20-day EMA and gain the upper hand in the near term. If they succeed, the DOGE/USDT pair could rally to the downtrend line. This remains the key level to watch out for, as the bears have successfully defended the level for many days.
If the price turns down from the downtrend line, it will indicate that the bears have not given up. The pair may then slide to the $0.07 support. On the other hand, a break above the downtrend line will signal a potential trend change. The pair may then rise to the $0.10 to $0.11 resistance zone.
Polkadot price analysis
The bears pulled Polkadot (DOT) below the neckline of the H&S pattern on Jan. 31, but they could not sustain the lower levels.
DOT/USDT daily chart. Source: TradingView
Solid buying by the bulls pushed the price to the 20-day EMA ($6.92) on Feb. 2. A break and close above the 50-day SMA ($7.44) will indicate that the bears are losing their grip. That could open the doors for a rally to $8.50.
Contrary to this assumption, if the price turns down from the moving averages, it will signal that the bears remain active at higher levels. The DOT/USDT pair may consolidate between the 50-day SMA and $6 for a few days.
Chainlink price analysis
Chainlinkโs (LINK) range-bound action resolved to the upside with a breakout above $17.32 on Feb. 2, suggesting that the buyers have overpowered the sellers.
LINK/USDT daily chart. Source: TradingView
However, the bears are unlikely to give up easily and will try to pull the price back below the breakout level. If they manage to do that, several aggressive bulls may get trapped. That may result in a fall to the 20-day EMA ($15.38).
Instead, if buyers maintain the price above $17.32, it will suggest a valid breakout. The $17.32 level may then act as a launchpad, propelling the LINK/USDT pair toward the target objective of $21.79.
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.
However, a positive sign is that Bitcoin did not stay below the $40,000 level for long. This indicates that lower levels continue to attract investors. Buying on dips and selling on rallies may keep Bitcoin inside a range for a few days. The next major catalyst for Bitcoin is the halving in April.
Daily cryptocurrency market performance. Source: Coin360
Another positive in favor of the bulls is that Bitcoin has produced an average monthly gain of about 12% in February, according to CoinGlass data. Since 2013, Bitcoin has ended February with a negative monthly return only in 2014 and 2020.
Could Bitcoin repeat its strong historical performance in February? Will altcoins follow Bitcoin higher? Letโs analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been trading between the 20-day exponential moving average ($42,365) and the overhead resistance of $44,700 for the past few days.
BTC/USDT daily chart. Source: TradingView
The 20-day EMA has started to turn up gradually, and the RSI has risen into the positive territory, indicating a minor advantage to buyers. If bulls overcome the barrier at $44,700, the BTC/USDT pair could attempt a rally to $49,000. The bears are expected to defend this level aggressively.
If the price turns down and plunges below the 20-day EMA, it will indicate that bears are trying to take charge. The selling could pick up on a slump below $41,394. The pair may then descend to $40,000 and later to $37,980.
Ether price analysis
Ether (ETH) remains stuck inside the $2,100 to $2,400 range, but the bulls have not given up and are trying to kick the price above the overhead resistance.
ETH/USDT daily chart. Source: TradingView
A close above $2,400 will be the first sign of strength. That could attract further buying, pushing the ETH/USDT pair toward $2,700. If the price turns down from $2,700 but rebounds off $2,400, it will indicate that the sentiment has turned positive. That will enhance the prospects of a rally to $3,000.
On the contrary, if the price turns down sharply from the current level or $2,400, it will indicate that the pair may spend some more time inside the range. The bears will be at an advantage if the price dives below $2,100.
BNB price analysis
BNB (BNB) slipped below the 20-day EMA ($304) on Jan. 31, but the bears could not break the 50-day SMA ($297) support.
BNB/USDT daily chart. Source: TradingView
The 20-day EMA has flattened out, and the RSI is near the midpoint, signaling a balance between supply and demand. A break above the downtrend line will tilt the balance in favor of the buyers. There is a minor resistance at $322, but if crossed, the BNB/USDT pair may soar to $338.
Contrarily, if the price turns lower from the downtrend line, it will indicate that the sentiment remains negative and the bears are selling on rallies. That increases the risk of a break below $288.
Solana price analysis
Solana (SOL) turned down from the overhead resistance at $107 on Jan. 30 but rebounded off the moving averages on Feb. 1.
SOL/USDT daily chart. Source: TradingView
The bulls will try to drive the price above $107. If they can pull it off, the SOL/USDT pair will complete an inverse head-and-shoulders pattern. That may start an up move to $126, which is a strong hurdle, but if the bulls prevail, the next stop could be the pattern target of $134.
If bears want to prevent the upward move, they will have to quickly tug the price below the moving averages. The pair could drop to $80, which is likely to act as a strong support.
XRP price analysis
Sellers yanked XRP (XRP) below the $0.50 support on Jan. 31, but the long tail on the candlestick shows buying at lower levels.
XRP/USDT daily chart. Source: TradingView
A break above the $0.51 resistance could clear the path for a rally to the 20-day EMA ($0.53). The bears are expected to defend this level with vigor. If the price turns down from the 20-day EMA, the XRP/USDT pair could plunge to $0.46.
The first sign of strength will be a break and close above the 20-day EMA. The pair may then travel to the downtrend line. Buyers will have to overcome this obstacle to start a new up move to $0.67.
Cardano price analysis
Cardano (ADA) has been trading inside a descending channel pattern for several days, indicating that the bears continue selling on rallies.
ADA/USDT daily chart. Source: TradingView
The flattish 20-day EMA ($0.51) and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price maintains above the 20-day EMA, the bulls will try to push the ADA/USDT pair to the downtrend line. A break and close above this level will suggest that the short-term downtrend may be over.
The critical level to watch on the downside is $0.46, and then the support line of the channel near $0.40.
Avalanche price analysis
Avalanche (AVAX) plunged below the 20-day EMA ($34.29) on Jan. 31, but the bears could not build upon this strength.
AVAX/USDT daily chart. Source: TradingView
The price climbed above the 20-day EMA on Feb. 2, indicating that lower levels are attracting buyers. This increases the likelihood of a break above the channelโs downtrend line. If that happens, the AVAX/USDT pair could start an up move to $44 and subsequently to the crucial resistance at $50.
This positive view will be invalidated in the near term if the price reverses direction from the downtrend line and breaks below $32. That will set the stage for a decline to the support line of the channel.
Related: Bitcoin price drops 1.3% in an hour as US payrolls smash estimates
Dogecoin price analysis
Dogecoin (DOGE) has been trading below the 20-day EMA ($0.08) for the past few days, but the bears have not been able to challenge the $0.07 support. This suggests that selling dries up at lower levels.
DOGE/USDT daily chart. Source: TradingView
Buyers will try to push the price above the 20-day EMA and gain the upper hand in the near term. If they succeed, the DOGE/USDT pair could rally to the downtrend line. This remains the key level to watch out for, as the bears have successfully defended the level for many days.
If the price turns down from the downtrend line, it will indicate that the bears have not given up. The pair may then slide to the $0.07 support. On the other hand, a break above the downtrend line will signal a potential trend change. The pair may then rise to the $0.10 to $0.11 resistance zone.
Polkadot price analysis
The bears pulled Polkadot (DOT) below the neckline of the H&S pattern on Jan. 31, but they could not sustain the lower levels.
DOT/USDT daily chart. Source: TradingView
Solid buying by the bulls pushed the price to the 20-day EMA ($6.92) on Feb. 2. A break and close above the 50-day SMA ($7.44) will indicate that the bears are losing their grip. That could open the doors for a rally to $8.50.
Contrary to this assumption, if the price turns down from the moving averages, it will signal that the bears remain active at higher levels. The DOT/USDT pair may consolidate between the 50-day SMA and $6 for a few days.
Chainlink price analysis
Chainlinkโs (LINK) range-bound action resolved to the upside with a breakout above $17.32 on Feb. 2, suggesting that the buyers have overpowered the sellers.
LINK/USDT daily chart. Source: TradingView
However, the bears are unlikely to give up easily and will try to pull the price back below the breakout level. If they manage to do that, several aggressive bulls may get trapped. That may result in a fall to the 20-day EMA ($15.38).
Instead, if buyers maintain the price above $17.32, it will suggest a valid breakout. The $17.32 level may then act as a launchpad, propelling the LINK/USDT pair toward the target objective of $21.79.
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.
Disclaimer: Includes third-party opinions. No financial advice.ย See T&Cs.