Crypto Investing
23 May 2022

Week 21 Crypto Market Update: BTC, ETH, ADA, MATIC, and ZIL

Ananda Banerjee

The onset of Week 21 has been positive for the crypto community. The market is finally showing signs of strength. Registering gains of over 4% at the moment (23 May 2022), the broader space seems to be on the path to recovery after the latest corrective whirlwinds.

Us to the crypto market:


Bitcoin seems to have reclaimed an important support level of $30,000 (₹24,28,500) as we speak, and it’s pushing the broader market up. Other sentimental drivers include a near-confirmed Ethereum merge date month and bigger brands like D&G collaborating with Chainlink. All of it adds up to those green flames you see on the horizon.

Broader Market Highlights

  • The crypto market stays correlated with the equities market, even though the bulls attempt up moves.
  • Sellers still have the upper hand as BTC continues to underperform, marking its weakest five months since 2018.
  • After the Terra meltdown, Binance Smart Chain (BSC) is now ranked 2nd after Ethereum in terms of Defi TVL (Total Value Locked).
  • The number of wallet addresses holding at least 1 BTC has reached an all-time high of 8,44,906.

On-Chain Metrics

Outlook: Recovery Continues

BTC continues to enjoy a market dominance of over 44% as of today, so the inflow of BTC to exchanges remains an important metric to understand upcoming crypto moves. For now, the volume of BTC being moved into the exchanges has dropped, reducing it four times since 19 May 2022.

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please Do Your Own Research (DYOR).

Inferences

  • BTC inflow on the 22nd was recorded as 23.98K. That is lower than the 6-month average.
  • The development suggests a decrease in panic selling.

Fear and Greed Index

Outlook: Fearful

The crypto Fear-and-Greed Index continues to hang low at 10, signifying a lot of fear among buyers. A few days back, the level dropped to 8 but then it jumped right back to 14 yesterday. However, it has dropped a bit today. Buyers will wait for this metric to trade above 25 before taking any definitive decisions.

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please DYOR.

Inferences

  • Despite a robust week, the overall market sentiment is still driven by fear
  • Volatility is obvious. That means Doing Your Own Research (DYOR) is the go-to tool for now.
  • CFGI needs to touch 25, and it needs to sustain those levels for buyers to come into action.

Current Conversion Standard: $1 = (₹80.95)

Key Coins

Bitcoin

Outlook: Moderately Bullish

With 4% gains to show, Bitcoin, current trading at $30,504 (₹24,69,298.80), is looking quite resilient, despite the larger cloud of underperformance. If you see the daily chart, BTC is currently trading within a descending triangle pattern—close to the lower trendline. On the downside, $28,651 (₹23,19,298.45) will be a key support level.

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please DYOR.

For an upmove from here, BTC first needs to breach the highly resistive zone of $31,367 (₹25,39,158.65), after which it can move toward the upper trendline. The Relative Strength Index (RSI) indicator is making consecutive highs, indicating that there’s some buying at the counter.

Ethereum

Outlook: Neutral

Ethereum (ETH) is up by almost 4.50%, as of today, buoyed by the fact that the developers are taking a clearer stance on the upcoming merge. Currently trading at $2,067 (₹1,67,323.65), ETH needs to sustain the immediate support level of $2,053 (₹1,66,190.35) to maintain the greenery around.

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please DYOR.

If prices crack from here, the lower band of the Bollinger might act as strong support. For an upmove from here, ETH might have to breach the immediate resistance of $2,153 (₹1,74,285.35) to have any chance of marching ahead aggressively. As far as the momentum is concerned, the RSI indicator, close to 60, is showing some bullish strength. However, ETH needs to sustain those levels for a clearer direction.

Cardano

Outlook: Bullish

Cardano is currently trading at $0.55 (₹44.52). It is up by almost 3.20%. Despite the continued correction, ADA’s 4-hour chart doesn’t look all that weak; you can clearly see it trading between the highly resistive and strong support zones—$0.61 (₹49.37) and $0.49 (₹39.66), respectively.

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please DYOR.

The narrowing price action suggests a move in either direction in the short- to mid-term. Also, the price and RSI form some sort of divergence. That signifies consolidation might be nearing an end. It is advisable to follow caution and wait for the (black) 20-EMA* line to move above the (orange) 50-EMA line before making any definitive decisions.

*Exponential Moving Average

Polygon

Outlook: Neutral

Polygon has been on a downward path for a while now, as per the daily chart (highlighted by the circles). To have any chance of reversing this trend, MATIC needs to breach the highly resistive level of $1.009 (₹81.67). Currently, MATIC is up by 4.22% and trading at $0.684 (₹55.36).

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please DYOR.

On the downside, there might be some strong support at $0.615 (₹49.78). The Moving Average Convergence/Divergence (MACD) indicator has finally managed to cross over the signal line, which might be a positive sign. Yet, things are expected to become clearer only if the MACD line crosses above the baseline and stays there for a while.

Zilliqa

Outlook: Volatile

After gaining over 13.5% in the past seven days, Zilliqa seems to be taking a breather today with a minor dip of 3.65%. As per the 4-hour chart, ZIL appears to be trading in a descending channel closer to the upper trendline.

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered as financial advice. Please DYOR.

If the prices drop, you can expect ZIL, currently trading at $0.057 (₹4.61), to have support at $0.0487 (₹3.94). Suppose ZIL manages to break the upper trendline, it might be able to move up to $0.083 (₹6.72) before facing some stiff resistance. Momentum-wise, the MACD line looks well above the baseline but is converging closer to the signal line, thus hinting at building selling pressure.

Wrap-Up

The crypto market had a decent Week 20. Despite what unpacked last week, the market seems to be managing a show of resilience, and that too with some crucial up moves (think Golem and Maker).

The start to week 21 has also been good until now. However, considering the low fear-and-greed levels, the best way forward is to DYOR and HODL.

If you still have your eyes set on some of the mentioned cryptos, downloading the CoinSwitch app to track them in real-time is always an option.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Ananda Banerjee

Content Writer

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