Crypto Investing
30 May 2022

Week 22 Crypto Market Update: BTC, ETH, SHIB, ALICE, and ADA

Ananda Banerjee

Last week (Week 21) was all about the crypto market holding steady. Fewer dips, assets peaking in cycles, and a hopeful lot of investors awaiting Terra’s reboot. Stimulated by robust market sentiments, we have entered week 22 with a positive outlook. The market is up 7%, and most cryptos are looking cheery.

Broader Market Highlights

  • Mihalo Bjelic, Co-Founder: Polygon, believes that the current wave of sell-offs and the persisting downturn are healthy for the crypto market in the long run.
  • The overall crypto market grew 12.5 times from November 2019 to November 2021— a rapid growth wave that is expected to stall a bit before resuming.
  • Bitcoin (BTC) has finally completed a nine-week losing streak, depicted by the consecutive bearish candles on the daily chart.
  • Metaverse tokens have looked upbeat over the past few days, hinting at the growing adoption of BUIDling strategies, play-to-earn gaming, and virtual real-estate.

Net-net, the market seems to be holding steady for now. Yet, we expect key cryptos like BTC and ETH to make the first move in case an uptrend comes knocking.

On-Chain Metrics

Outlook: Upcoming Strength

An increase in bitcoin inflow to exchanges isn’t great news for the price action. The higher the volume of BTC pushed into the exchanges, the higher the chances of sell-offs. Here is how the ‘BTC Inflow’ metric looked as of yesterday:

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

Inferences

  • The volume of BTCs moved to the exchanges is lower than the 6-month average, at 22.66K.
  • Sell-off frequency seems to have dropped as compared to the highs experienced on the 9th of May.

Fear and Greed Index

Outlook: Extreme Fear Persists

Despite the optimistic on-chain metrics, the CFGI (Crypto Fear and Green Index) levels haven’t changed over the past week. Currently, at 10, the present CFGI level indicates volatility, panic among the buyers, and weaker social sentiments.

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

Inferences

  • The CFGI levels must cross 25 and sustain the same for a week or two for buyers to jump into action.
  • Bears still seem to be in control as the index appears to have plateaued at 10, week-on-week.
  • Regardless of the direction, breakthrough price action might be expected in days to come.

Current Conversion Standard: $1 = (₹80.42)

Key Coins

Bitcoin

Outlook: Neutral

Currently trading at $30,629 (₹24,63,184.18), bitcoin is up by almost 5.50% at release. The daily chart suggests that BTC is currently trading in a narrow channel, with resistance and support levels expected to be at $31,367 (₹25,22,534.14) and $28,651 (₹23,04,113.42), respectively.

Source: Trading View

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

At present, the 20-EMA line is acting as the immediate resistance, and if BTC manages to breach it with high volumes, we can expect BTC to move towards the 50-EMA line as the next resistance. On the downside, any breach of the $30,000 (₹24,12,600) mark could lead to BTC retesting the support of $28,651 (₹23,04,113.42).

Despite the bearish sentiments, buyers might take some motivation from the bullish RSI divergence on display. The price action moved lower in the past few days while the RSI made higher highs— signifying weakening bearish momentum.

Ethereum

Outlook: Neutral

Ethereum is up by 7% as we speak. Currently holding onto the key levels of $1,904 (₹1,53,119.68), ETH doesn’t look all that weak on the daily chart. The bullish divergence, much like BTC, is visible. This means the bulls might try and take the prices upwards from the existing levels. If ETH manages to move up, the psychological resistance of $2,000 (₹1,60,840) will be the first hurdle.

Source: Trading View

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

For any corrective move or a sudden downturn, ETH might have to reset the $1,700 (₹1,36,714) levels— breaching, which might further the downtrend.

Shiba Inu

Outlook: Bullish

Popular memecoin Shiba Inu had a pretty lackluster week 21 as it dipped by close to 3.5% in the past seven days. As of May 30, 2022, things are looking up as SHIB is already in the green, up by almost 11%. As per the 4-hour chart, SHIB is trading at $0.0000119 (₹0.00096) and must be able to breach the immediate resistance of $0.000013 (₹0.00104) to have any chance of moving upwards.

Source: Trading View

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

On the downside, the 50-EMA line might be the immediate support, followed by $0.0000112 (₹0.0009). If these levels are breached, SHIB might head towards the lows of $0.000010 (₹0.00080). For now, if the 20-EMA line (Black) manages to cross over the 50-EMA (Orange), the upmove might look more likely.

My Neighbor Alice

Outlook: Bullish

ALICE, a well-known gaming token, has been our top performer today, managing gains of almost 18% as of now. The 4-hour chart suggests that ALICE is currently trading at $3.151 (253.40), just a tad shy of the immediate resistance of $3.165 (₹254.52). If the upper line breaks, you can expect the prices to head closer to the $4.10 (₹329.72) mark.

Source: Trading View

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

If ALICE corrects from here, you can expect the 20-EMA and 50-EMA lines to be the critical support levels. The MACD (Moving Average Convergence/Divergence) indicator hints at positivity, with the MACD line now moving above the baseline and over the signal line (orange).

Cardano

Outlook: Bullish

Despite the 12.38% gain registered in the past few hours, Cardano seems to be in a downtrend, as suggested by the 4-hour chart. Currently trading at $0.519 (₹41.74), ADA has been making lower highs and lower lows for the past many trading sessions, as showcased by the ticks. However, if ADA manages to breach the $0.57 (₹45.84) mark, it might mean the end of the persisting downtrend.

Source: Trading View

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

For any move on the downside, the 50-EMA line acts as immediate support. The momentum seems optimistic as the MACD line has managed to cross over the baseline, albeit partially.

Wrap-Up

The broader crypto market still seems to be in the ‘Bear Clutches.’ Yet, bulls are trying hard to bring a reversal of sorts. While some assets are showing renewed strength and momentum today, it is still safe to DYOR (Do-Your-Own-Research) before any trend is confirmed.

And if you are already HODLing and interested in tracking the mentioned cryptos closely, downloading the CoinSwitch app might be a good 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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