Crypto Investing
16 May 2022

Week 20 Crypto Market Update: BTC, ETH, SOL, ADA, and DOGE

Ananda Banerjee

Last week was bittersweet for crypto. Terra had a meltdown, dragging the rest of the market down with it. By the end of the week, though, the broader crypto space managed a relief rally of sorts.

Today, with an early morning gain of almost 3% (registered on 16 May 2022), the market looks poised for a better week.

Still, it might be safer to sit tight and watch the space for now. And you are just where you need to be to do that. Here’s where you find out if the market is ready to announce itself Louder Than Bombs, or if it’s too early to say.

Broader Market Highlights

  • The Cardano blockchain will soon implement the Vasil Hard Form, improving the smart contract abilities of the entire ecosystem.
  • Elon Musk pushes for DOGE, championing the popular memecoin as a potential currency.
  • Despite the Terra debacle, Justin Sun, founder of Tron, didn’t stop talking up the USSD—his ambitious algorithmic stablecoin project.

On-Chain Metrics

Outlook: Recovery Mode On

Bitcoin being pushed into the exchanges for sale can be hard on the price action. After assuming a high of 130K BTCs, on 10 May, the “Inflow to Exchange” metric seems to have waned a bit. As of 14 May 2022, the volume was close to 53K.

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

Inferences

  • Panic selling seems to have taken a backseat for now.
  • HODLing is getting stronger.
  • The BTC inflow volume is lower than the 30-day average right now.

Fear-and-Greed Index

Outlook: Still Fearful

Last week, the fear-and-greed index dropped to as low as 9—a demonstration of the massive skepticism at crypto counters. Things seem to be changing as today (16 May 2022) the index has moved up to 14.

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

Inferences

  • Social sentiments involving crypto are steadily improving.
  • The market is still volatile; discretion and Doing Your Own Research (DYOR) are advised.
  • The index needs to breach and stay at the 30 mark for new buyers to show optimism.Current Conversion Standard: $1 = (₹81.39)

Key Coins

Bitcoin

Outlook: Moderately Bullish

Not the best of months for Bitcoin (BTC). Yet, it is managing to trade in the green today, with gains of almost 3%. As per the 4-hour chart, BTC is trading at $30,398.41 (₹24,74,126.58). The Moving Average Convergence/Divergence (MACD) indicator is hinting at building buyer strength at the counter.

Source: Trading View

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

BTC seems to be making an “inverted head-and-shoulders” pattern, with the neckline placed at the resistive level of $31,874 (₹25,94,224.86). If BTC manages to break out of the neckline, you might see it gaining some legs in the short term. Yet, buyers would probably just wait for a clever signal: the MACD line rising above the baseline.

In case BTC dives, the 20-EMA* line might act as strong support. Below that, the price might crack further.

*Exponential Moving Average

Ethereum

Outlook: Moderately Bullish

Ethereum has managed to stay green today with a 1.37% gain. At present, Ether (ETH) is trading at $2,061 (₹1,67,744.79) and seems to be forming multiple ascending channel patterns with the resistance lines. If ETH manages to breach the first resistance at $2,153 (₹1,75,232.67), you can expect it to move toward $2,330 (₹1,89,638.70), where the next resistance is placed.

Source: Trading View

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

For price cracks from here, ETH might assume $1,800 (₹1,46,502) levels in the short term. However, the improving Relative Strength Index (RSI) levels—making higher highs—signal developing buyer strength at the counter.

Solana

Outlook: Volatile

Solana is having a great day so far. It is already up by 5.78% and doesn’t look weak on the charts, despite the lackluster week. The 4-hour chart has SOL trading at $53.65 (₹4,366.57) and inside a triangle pattern. At present, it is closer to the lower trendline and the 20-EMA line, and any breach will take it towards the $50 (₹4,069.50) level.

Source: Trading View

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

On the way up, SOL needs to cross the resistive 50-EMA line and then the upper trendline to have any chance of going toward the $80 (₹6,511.20) level. Also, you can identify the RSI divergence from the chart, which is showing weakening seller momentum at the SOL counter.

Cardano

Outlook: Neutral

Cardano is trading in the green, with day-on-day gains of almost 5.5%. Its position is due in part to the expectations surrounding a new hard fork and better exposure to smart contracts. Yet, the 4-hour ADA chart has a lot of additional insights to offer on the crypto.

Source: Trading View

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

Firstly, you must watch out for the completion of the three lower lows and higher highs to confirm ADA’s short-term uptrend. In case ADA manages to cross the resistive level of $0.61 (₹49.64), the uptrend might get some credibility.

On the lower side, ADA needs to stay above the immediate support of $0.48 (₹39.71) to confirm an uptrend. The RSI indicator is sitting at 50, and any upmove from here might be a good sign for the bulls.

Dogecoin

Outlook: Neutral

Buoyed by Elon Musk’s optimism, Dogecoin is trading with a hint of green on 16 May 2022. At 0.30% gains, DOGE is currently trading at $0.08 (₹7.08). According to the 4-hour chart, DOGE seems to have breached the lower trendline of a triangle pattern and has immediate support at $0.0836 (₹6.80).

Source: Trading View

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

If DOGE moves up and breaks the resistance level of $0.09 (₹7.58), you might expect it to move toward the $0.1 (₹8.14) level. Coming to the momentum, MACD is trading above the signal line—a positive sign for the bulls.

Wrap-Up

The broader crypto market is still smarting from the terrible blows it withstood a few days ago, but recovery seems to have begun with most key coins in the green today.

If you are a Risk Hai To Ishq Hai kind of person, it won’t hurt to be a bit cautious for a while. Har investor Dip Chahta Hai, but buying without a DYOR strategy is always a no-no. HODL is another good strategy, moving ahead. DYOR and HODL will help you watch the market from the sidelines and take informed calls.

And if you can’t stay away from the market, track your investments occasionally by downloading the CoinSwitch app.

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

Table of content