Digital Asset Insights

Digital Asset Insights #90

The good news is here, take advantage of the bullish trend, know which digital currency is worth investing in, and be guided by the expert predictions in this newsletter.


Bitcoin (BTC)

Bitcoin price was consolidating at the start of the previous week. This move continues to be undone as sellers offload their holdings. However, this bullish move over the weekend was an indication of more positive developments to come.

On the first two days of the week, bitcoin price showed a considerable bullish moment, which resulted in a massive rally for many altcoins. Bitcoin price rallied 5.6%, making it the first volatile move after weeks of consolidation around the $19,000 region. This run-up sliced through the 30-day and the 50-day Exponential Moving Averages (EMAs) at $19,520 and $19,793, respectively. Notably, this was a huge development from a market structure perspective as it indicated the potential end of the consolidative regime.

On Thursday, Bitcoin price traded at $20,596 as the bulls produced an impressive 10% rally during the final week of October. The move north was catalyzed by the 8-day exponential moving average (EMA) crossing above the 21-day simple moving average on Tuesday, October 25.

The bulls displayed strength as the profit-taking consolidation remained above October’s trading range. A Fibonacci retracement tool surrounding the strongest part of the rally showed the current auctioning price as just a 23.6% retracement.

Going into the weekend, Bitcoin price traded at $20,503. After being rejected from the $21,000 level on Wednesday, October 26, the peer-to-peer digital currency fell 4%. As it hovered a few hundred dollars above the 2017 all-time highs at $19,600, leaving investors to wonder, what will happen next?

Bitcoin price breached overbought conditions upon the previous rally. If a bounce is to occur, a divergence between swing lows on the Relative Strength Indicator would be ideal for sidelined bulls to enter the market. Currently, the RSI does not show a divergence but is coming down to test previous resistance zones as support. If the market is genuinely bullish, $22,000 could be the next target, provided that support is established soon.

The bullish thesis would be void if the swing low at $18,650 were tagged. If the bears happen to re-tag that level, a further decline toward the October 13 lows at $18,300 would likely commence. Such a move would result in an 8% dip from Bitcoin's current market value.


Ethereum (ETH)

Ethereum price managed to recover above the $1,280 support level and kick-start a 9.49% run-up the weekend before the start of last week. This move collected the buy-stop liquidity resting above $1,343.

On Monday, October 26, Ethereum price briefly touched the $1,500 level, and the second-largest cryptocurrency was up 18.4% over the past week.

Ethereum price blows past bears at mid-week. Ethereum price stunned the market as the bulls pulled off a 20% rally in less than a week. Ethereum, the decentralized smart-contract token, auctioned well above the previous range while volume tapers during the current profit-taking consolidation. On Wednesday, October 28, Ethereum price traded at $1,550.

Entering into the weekend, Ethereum price witnessed a 5% bounce during the final Friday of October. Ethereum, the decentralized smart contract token, fell into the mid $1,390 level during the overnight session and rebounded with an uptick in volume by New York's opening bell.

Ethereum price auctioned at $1,545. If the market is genuinely bullish. ETH's price should propel toward the $1,600 level over the weekend. Traders should keep the decentralized smart-contract token that has yet to retest the ascending trend channel, which broke through earlier this week. A break below the swing low at $1,450 could trigger a sell-off into the lower half of the trend channel at $1,407.


Ripple (Ripple)

At the opening of last week’s trading session, Ripple price faced rejection after a failed attempt to recover above the $0.465 hurdle. A daily candlestick close below this level could trigger a correction to the midpoint of the $0.331 to $0.464 range at $0.397. A demand zone between $0.381 and $0.433 overlaps the said midpoint at $0.397 and should provide investors with a cushion that absorbs the incoming selling pressure.

On Wednesday, October 27, XRP price auctioned at $0.47 as the bulls have managed to breach the 8-day exponential moving average and are now testing it as support. On the week, the digital remittance token was up 5%.

XRP price was in a challenging situation during the weekend. As the trading range coils from October's highs at $0.54 to the lows at $0.42, most of the trading has taken place near the lower half. The digital remittance token remained submerged as low volume continued to signal a bullish lack of interest.

XRP price auctioned at $0.4676. An optimistic signal is that the 8-day exponential moving average has provided support, enabling Ripple's ongoing 3% bounce. The bad news is that the 21-day simple moving average rejected the price prior, and the volume shown does not look substantially different from Ripple's previous attempt.

A failure to hurdle the 21-day simple moving average at $0.48 could lead to a sweep-of-the-lows-event targeting $0.41. Such a move would result in an 11% decline from the current market value.

Invalidation of the bearish idea is a breach above the October 27 swing high at $0.48. If the bulls manage to reconquer the $0.48 barrier, an additional rally targeting September highs at $0.56 could occur. Such a move would result in an 18% increase from the current XRP price.


Cardano (ADA)

Cardano price rallied in applaudable fashion to end the third week of October. Just before the start of last week, ADA, the self-proclaimed Ethereum killer token, lost 10% of its market value. However, on Monday, October 24, the bulls managed to reconquer nearly all of the losses as a strong bullish rally ensues. Cardano price auctioned at $0.3619.the rally north has breached the 8-day exponential moving average. The Relative strength index has rallied into over-bought, hinting at bullish confidence.

Cardano price rallied 12% and shattered through two crucial hurdles - the lower limit of the $0.380 to $0.609 range and the 30-day Exponential Moving Average (EMA) at $0.393. This move indicated the resurgence of bullish momentum and will likely propel ADA higher in the coming days.

While the outlook is bullish, no doubt, market participants need to be patient and wait for a pullback. As ADA traded between the 30-day and 100-day EMAs at $0.393 and $0.413, respectively, investors need to pay close attention to Bitcoin.

A retracement for the big crypto would translate to a breakdown of the $0.393 level for Cardano price and would be followed by a retest of the $0.380 or $0.372 support levels. Accumulating ADA at these levels would provide a better risk-to-reward ratio.

The targets, however, would include $0.434, but a flip of this level would allow Cardano price to surge higher and revisit the 100-day EMA at $0.458 and 50% Fibonacci retracement level at $0.494. In total, investors could expect a 32% run-up for Cardano price after a retracement to $0.372.

While things are looking up for Cardano price, a breakdown of the $0.372 support floor will indicate that the buyers are not committed. Such a development could lead to a daily candlestick close below the $0.348 level, which would create a lower low and invalidate the bullish thesis for the so-called “Ethereum-killer.”


Solana (SOL)

Solana price has pulled off an impressive rally as the bulls have induced a 15% rally since Monday's (last week’s) opening bell. Solana, the centralized smart contract token, breached the 8-day and 21-day simple moving averages on October 24 while dually flying into overbought conditions on the Relative Strength Index. Based on these signals, the SOL price could be in the beginning stages of a much larger move.

Solana price auctioned at $31.23 on Tuesday as a profit-taking consolidation occurred just above the recently breached 21-day simple moving average. The volume above the breached indicator was less than the large engulfing candle that pierced through it, which was a subtle gesture of bullish strength.

At the end of the week, Solana price was exchanging hands at $31.86. Binance Coin price tagged $290 on Wednesday while Ethereum price was trading at $1,553 on Thursday. With the market generally bullish, the competitive smart contracts token SOL has the potential to obliterate resistance at $32.30 as bulls push to $39.00.

Solana is currently taking a breather between two critical levels – its immediate support at 38.2% Fibonacci level ($30.96) and a confluence resistance at $32.20. This key confluence level has been reinforced by the 200-day SMA (Simple Moving Average) (purple) and the 50% Fibonacci retracement level.

Traders who missed the move from support at $26.85 can look for new entries above the 200-day SMA for a conservative take-profit target at the 61.8% Fibonacci ($33.80). Stubbornly bullish traders can wait for Solana price to make a 100% bullish trend correction to $39.00.

On the other hand, a retracement below SOL’s immediate support at $30.96 should not be ruled out, especially if bulls fail to push past resistance at the 200 SMA. Short positions may be entered slightly below the support mentioned above for a profit target at the 50 SMA (in red), marginally above a descending trend line from September 13.