After the decline in the price of Bitcoin (BTC), several of the leading cryptocurrencies lost value. While investors may be comfortable for the long run, they are reluctant to make short-term price predictions.
Cointelegraph analyst Rakesh Upadhyay conducted technical analysis and price evaluation for the top 5 cryptocurrency by market cap.
BTC/USD – Bitcoin teknik analiz
Bitcoin climbed above the 20-day exponential moving average (EMA) ($ 33,087.91) on January 25, but traders considered this increase to take profit. As such, it pushed the price to the $ 30,450 support on January 26. The bulls increased purchases in this decline, but failed to move above the 20-EMA level.
Daily chart of the BTC / USDT pair. Source: TradingView
The BTC / USD pair continues its correction process. The downside 20-day exponential moving average (EMA) and the relative strength index (RSI) in the negative zone show that the bears are stronger.
The bears may drop below the 50-day simple moving average ($ 29,667) and if it stays there, the pair will complete the bearish trend triangle pattern. In this case, a retracement may come to around $ 25,897.42 where the 50% Fibonacci retracement level is calculated. Then it’s even possible to drop to the 61.8% retracement level at $ 22.106.73.
This downtrend will become invalid if the price returns from the current level and moves above the downtrend line indicated by the purple line on the chart. In such a case, the pair could rise to $ 40,000 and then to $ 41,959.63.
ETH / USD – Ethereum price analysis
The failure of the Ether (ETH) price to rise above $ 1,400 on January 25 indicates that the bears were taking higher profits. The bulls tried to rebound on January 26, but the altcoin fell today, indicating that traders can close their long positions.
Daily chart of ETH / USDT pair. Source: TradingView
The negative bias in the relative strength index (RSI) indicates that the momentum is weakening. If the bears can pull the price below the 20-day exponential moving average (EMA) ($ 1,216), the rising trend line is likely to be retested. In this case, the trend line will become an important support to watch out for. Because a break below this line indicates a possible trend change. The next downside support is at the 50-day simple moving average (SMA) ($ 942).
On the other hand, if the bulls can continue the current recovery, it will be revealed that the bearish is buying. If the bulls can push the ETH / USD pair above $ 1,400 to $ 1,473, the next target of the uptrend would be $ 1,675.
DOT / USD – Polkadot technique analysis
Polkadot (DOT) price rebounded from the overall resistance level on January 25 and dropped to the $ 14.7219 support. Bulls defended this support aggressively.
Daily chart of DOT / USDT parity. Source: TradingView
A recovery at $ 14.7219 reveals that traders are saving in the decline. This could hold the DOT / USD pair between $ 14.7259 and $ 19.4 for a few more days. The gradually rising 20-day exponential moving average (EMA) and the relative strength index (RSI) in the positive zone show that the bulls have a small advantage.
If the bears pull the price below $ 14.7219, the decline could drop to the 50% Fibonacci retracement level located at $ 13.2821 and even to $ 11.8383, located at the 61.8% Fibonacci retracement level. A deeper correction will show that the uptrend is losing momentum, which could result in a few days of sideways movement before the next trend move begins.
XRP / USD – Ripple price analysis
After XRP price defended the 20-day exponential moving average (EMA) ($ 0.27938) for the past few days, the bears are currently trying to push XRP below the $ 0.245 support. Downward moving averages and the relative strength index (RSI) in the negative territory show that the greatest probability of movement is in the downside.
Daily chart of XRP / USDT pair. Source: TradingView
A break below $ 0.245 will increase the likelihood of a decline to the next critical support i.e. $ 0.17351. If this support is also broken, the XRP / USD pair could sustain its downtrend up to $ 0.1.
On the contrary, if the pair returns from the current level and the bulls again push the price above the downtrend line, the price could move in the range of $ 0.245 to $ 0.3855 for a few more days.
ADA / USD – Cardano analysis technique
Cardano (ADA) price declined from $ 0.3685714 on January 24, following a strong recovery on January 22nd. This indicates that traders are taking advantage of the above $ 0.34 rally to close their long positions.
Daily chart of ADA / USDT parity. Source: TradingView
The bulls are currently defending the support line of the rising channel trend. A strong bounce from this level will indicate that the bulls are buying on dips. The bulls will then try to push the price above the downtrend line. If this happens, it can be understood that the fix is over.
If the price stays above the downtrend line, this time the $ 0.3971995 level could be retested. Conversely, if the bears break the price below the support line, a decline to the 50-day simple moving average (SMA) ($ 0.23) may occur. One step further of this means the end of the uptrend.
The views and comments expressed here are only of the analyst. It may not reflect Cointelegraph’s views. Every investment and trading move involves risk. When making your decision, you should do your own research.