4 April 2022
Good day Crypto AQXers,
Despite the macro headwinds, the US economy continues to remain strong. Unemployment rate fell from 3.8% to 3.6%, a post-pandemic low. However, we saw the yield curve invert for the first time since 2019 last Thursday.
Will this apparent drop in risk appetite signal that the cryptocurrency market could be facing potential headwinds moving forward? Let’s take a look at how the crypto on our watchlist performed last week.
(If you have a cryptocurrency you want me to take a look at on this weekly watchlist, comment on the article.)
Bitcoin (BTC)
The cryptocurrency with the largest market capitalization encountered resistance and declined in price at the 200-day moving average. As highlighted in my previous weekly crypto technical analysis article, after the strong run-up in price that Bitcoin (BTC) experienced since breaking above the $42–43K price level, some profit-taking at the 200-day MA can be expected.
A decline of 5–10% from the 200-day moving average level is natural and even good for a healthy uptrend. With this in mind, for the uptrend to remain healthy, we want to see Bitcoin holding above the previous supply zone (pink box) if prices do continue to decline.
Ethereum (ETH)
Ethereum (ETH) has managed to break and close above the 200-day moving average on the 3rd of April. This close above the 200-day moving average is significant as it tells us that buyers were able to hold sellers off at a key resistance level.
However, looking at the long upper wicks (the line above the candlestick) of the 2nd and 3rd of April, there are definitely still some selling pressure at the 200-day moving average. This moving average is key in indicating to us the future trend of ETH. If the uptrend is to continue, we want to see Ethereum continue to close above the moving average.
Terra (LUNA)
LUNA is at its all-time highs! The dry-up in volume of the cryptocurrency just below its highs and the resistance level at $96 indicates to us that volume has stopped coming in for LUNA. We mentioned in our previous weekly crypto technical analysis article that with this dry-up in volume, just a bit of buying demand can push LUNA prices up which we saw happened on the 28th and 29th of March.
LUNA surged more than 15% the last week and as of the writing of this article, the technical price action of the crypto continues to remain strong. Volume on up days remains higher than volume on down days so we could be looking at further upside potential for LUNA.
Solana (SOL)
Solana (SOL) has moved into the supply zone (pink box) and is currently experiencing some resistance at this area as indicated by the multiple relatively long upper wicks on the 1st — 3rd April trading sessions.
If prices of SOL can continue to remain above the supply zone coupled with the 50-day moving average turning back up, these are positive signs for Solana to remain on its uptrend moving forward.
Cardano (ADA)
Cardano (ADA) is currently experiencing resistance at the $1.18–1.19 price level as highlighted in our previous article. So far, even though prices of ADA have declined slightly from the resistance level, it has managed to hold up relatively well. This tells us that there are buyers willing to support ADA at that price level.
Furthermore, from its lows at the support level back in late February and early April, Cardano has moved up by more than 50%. A pause and a slight decline after such a run-up is natural and to be expected.
Disclaimer: Any opinion shared in this article is strictly the views and opinions of the author and should not be construed as financial advice. AQX makes no judgment on the projects or the content uploaded.
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