Crypto Investing
13 Jun 2022

Week 24 Crypto Market Update: BTC, ETH, SOL, XTZ, and ADA

Ananda Banerjee

After a pretty robust week 23, the broader market was seen cratering over the weekend. Currently, the crypto market is down by almost 13%. While a relief rally or even a revival of sorts is expected, what’s alarming is that the crypto–equity correlation continues to grow stronger, even as the US equity space ended the last week with severe losses.

With the upcoming Federal Open Market Committee (FOMC) meeting, some of the riskier assets like crypto are likely to remain volatile for days and weeks. Mike Mcglone, Senior Commodities Strategist at Bloomberg Intelligence, believes that if the equity space dips further, we might see deeper reds across the broader crypto market.

So for now, it’s all about keeping safe and staying with projects backed by solid teams and positive sentiments.

Broader Market Highlights

  • As the inflation figures continue to rise, the federal reserve is expected to announce massive rate hikes. If this happens, it might create additional headwinds in a crypto market that’s already hurting.
  • Celsius, a leading DeFi platform, has paused crypto transfers and withdrawals, citing liquidity issues.
  • Uncertainty regarding the Ethereum Merge timeline has caused Ether (ETH) to drop over 28% of its weekly gains, despite the testnet merge success.

Crypto Index (CRE8)

Outlook: Bearish

As per the Crypto Rupee Index (CRE8), the broader market is on a downtrend—with lower highs made on the weekly charts (highlighted in the image below with the red ticks).

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

As of now, CRE8 is trading at ₹2,460 and is down from the day’s high by 11.85%.

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

Inferences

  • The CRE8 index needs to breach the ₹2,810 level to thwart the downtrend and move toward a steadier space.
  • The Indian crypto index has dropped by almost 23% in the past seven days, hinting at panic sell-offs.

Current Conversion Standard: $1 = (₹83.14)

Key Coins

Bitcoin

Outlook: Volatile

Bitcoin (BTC) dropped below the $25,000 (₹20,78,500) support level for a brief period, only to get back up and protect it. As of now, BTC is trading at $25,068 (₹20,84,153.52), breaching the lower trendline of the falling wedge pattern on the daily chart. If BTC manages to re-enter the wedge, it will need to breach the immediate resistance of $28,651 (₹23,82,044.14) to be able to move toward the upper trendline.

Source: Trading View

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

On the downside, $25,000 (₹20,78,500) seems like BTC’s lowest level since December 2020, and if it breaks this level with high sell volumes, expect the crypto to head toward $23,000 (₹19,12,220). The RSI* is hitting the oversold region of 30, and a small relief may be expected in the short- to mid-term.

*Relative Strength Index

Ethereum

Outlook: Bearish

Ethereum’s freefall has been anything but expected, especially after the success of the Ropsten testnet merge. Down by over 11% in the past 24 hours, ETH is currently trading at $1,287 (₹1,07,001.18)—way off the weekly high of $1,800 (₹1,49,652).

Source: Trading View

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

The merge delay is believed to be the primary reason for this price crack. If ETH moves lower, expect the price to touch $1,200 (₹99,768). The RSI is deep into oversold territory, signifying a possible bounce in the price action. If ETH manages an upmove, it will first need to cross the lower trendline or $1,600 (₹1,33,024) to show solidarity.

Solana

Outlook: Neutral

Solana (SOL) has had a rough week with yet another network outage planting the seeds of doubt in investors’ minds. As of now, SOL is trading at $27.60 (₹2,294.66), as per the 4-hour chart—down by almost 36% weekly. SOL has taken support at $26.94 (₹2,239.79). If this support level is breached, expect SOL to drop further.

Source: Trading View

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

On the upside, $31.45 (₹2,614.75) seems like the immediate resistance line and a possibility, as the RSI levels have dropped close to 20. In most cases, an oversold RSI range, similar to the one at the SOL counter, leads to a quick upmove

Tezos

Outlook: Bearish

Despite being the new home to USDT or Tether, Tezos hasn’t had the best of weeks, dipping by almost 28%. Currently, the 4-hour chart has Tezos’ token XTZ trading at $1.492 (₹124.04)—perilously close to the support level of $1.48 (₹123.04). In case XTZ dips further, support at $1.25 (₹103.92) could be a near-term possibility. As you can see below, XTZ has dropped quite a bit after breaching the ascending channel pattern.

Source: Trading View

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

If XTZ manages to move upwards, $1.67 (₹138.84) seems like the resistance level to breach.

The Moving Average Convergence/Divergence (MACD) indicator is way off the standard limits, signifying negative momentum for Tezos.

Cardano

Outlook: Volatile

Cardano is currently trading at $0.44 (₹)—almost 86% down from its all-time high of $3.10 (₹). As per the 4-hour chart, token ADA has broken out of a symmetrical triangle pattern and is looking at the immediate low of $0.40 (₹), which it touched on 12 May 2022.

Source: Trading View

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

For ADA to move up from here, against the negative MACD momentum, it would first need to breach the resistance level of $0.45 (₹) and $0.49 (₹), respectively.

Wrap-Up

If you are looking at the possible causes of this sudden crash, feel free to blame it on global inflation, panic selling in the crypto market—especially at the ETH counter—and the talk about an upcoming recession. Additionally, the continuing correlation with the equity market is pulling it downward.

During these uncertain times, a quintessential DYOR strategy might be helpful. Can’t recommend much else, but do give the CoinSwitch app a shot if a user-friendly experience is what you want.

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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