Crypto Investing
7 Mar 2022

Week 10 Crypto Market Update: BTC, ETH, XRP, WAVES, and FTM

Deepan Datta

With new geopolitical challenges emerging every passing day and the crude shock affecting national monetary policies, the crypto market is feeling the heat. Investors are finding themselves in a dilemma, whether to take advantage of the falling market or keep liquidity in hand.

Over the last week, the crypto market tried to break above the $2 trillion market capitalization but gave up most of the gains as the weekend approached, due to a lack of buying at higher levels and subdued investor sentiment.

Let’s take a quick look at what the on-chain indicators and price charts of leading crypto assets are showcasing.

On-chain Metrics

Outlook: Supports HODLing

The Bitcoin (BTC) inflow to exchange on-chain data over the last month and week indicates that the market is absorbing the coin’s supply coming into exchange during the week.

This also indicates that strong hands are continuously buying, unfazed by the worsening geopolitics and weakening of global growth. It also explains why BTC is holding on to the key levels.

on chain metrics
source: https://markets.chainalysis.com/

The chart above showcases the fact that BTC’s supply to exchanges during the start of last week went up. The number of BTC touched 80,000, which is close to the average supply of 90 days. As the week drew to a close, the excess was absorbed, and supply settled close to 17.34 K BTC.

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

Fear-and-Greed Index

Outlook: Fearful

Crypto fear and greed index
source: alternative.me

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

The Fear-and-Greed Index, which showcases investor confidence in the market, shows that extreme fear still prevails.

A long period of lower investor confidence helps weed out the weak hands from the market, which eventually helps in the next cycle of market growth. A move above 35 in the Fear-and-Greed Index indicates improving investor sentiment in the market which might send the market higher.

Now, let’s look at how the leading crypto assets are doing in this highly volatile and uncertain market condition.

Exchange Rate for $1 = ₹79.90

Bitcoin

Outlook: Bearish

During the last week, BTC showcased some wild moves, moving from $38,000 (₹30,39,682) to $44,500 (₹35,24,719). However, due to a lack of buying at the higher levels to support the price, it gave up most of its gains and ended the week flat.

Bitcoin chart
source: tradingview.com

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

Currently, BTC is trading close to $38,000 (₹30,39,682), which is one of the key support levels. Any break below might cause prices to drop and end up close to the $35,000 (₹27,96,500) level. A key momentum indicator, the Relative Strength Index (RSI) indicates that bearish momentum will prevail in the near term.

To chart a trend reversal or move higher, it needs to break above the massively resistive $40,000 (₹31,96,000) level.

Ethereum

Outlook: Bearish

Ethereum (ETH) failed to capitalize on the gains and has lost close to 5% during the past week. Initially, after gaining close to 15% in the first two days, ETH prices cracked after facing a strong resistance near the $3,000 (₹2,39,700) level.

ETH Market update
source: tradingview.com

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

With the overall momentum looking negative, weakness in the counter is likely to persist. It is currently trading close to its next major support level, at $2,500 (₹2,00,000), and it may drop down to the next major support level of $2,400 (₹1,92,000). Check the current ETH to INR convert rate. 

Alternately, for ETH to confirm the trend reversal and move higher, it needs to break above $2,600 (₹2,07,740) and $2,700 (₹2,15,730) successively with strong buying activity. 

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Ripple

Outlook: Bearish 

Ripple’s XRP was mostly sideways during the week, moving within a narrow range between $0.79 (₹63.12) and $0.71 (₹56.72). However, it ended the week with a net gain of close to 3%.

XRP price chart
source: tradingview.com

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

On the hourly chart, it is forming a descending triangle pattern, which is a bearish pattern; therefore, one needs to be careful before initiating a buy trade. Also, the RSI indicates a loss in momentum. If the broader market cracks, we may see an effect on XRP prices.

Want to track Ripple prices live? Here’s our price ticker.

The $0.7170 (₹57) is a strong support zone, and if it breaks below, the next major support is at $0.6778 (₹54.15). 

For XRP to move higher, it needs to break above the descending trendline (marked in blue), which is currently acting as a strong resistance line. 

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Waves (WAVES)

Outlook: Neutral

Waves token has been one of the best performing tokens in the past week, with over 50% gains. Currently trading at $18.30 (₹1,457.80) level, the token’s one-week lowest and highest levels are $ 12.40 (₹971) and  $20.8 (₹1,666.40), respectively.

Waves price chart
source: tradingview.com

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

It is currently trading sideways, moving within a narrow range between the $19.13 (₹1,528.48) and $17.80 (₹1,422.22) levels. However, you should note that the RSI is indicating a slowing down of momentum, as WAVES has fallen below 50.

Keep a close eye on the $16.8293 (₹1,344) level—a key support level—and how the market moves around that zone. In case it breaks below, we may see a further drop in prices to $13 (₹1,038). 

Waves need to clear above the $19.13 (₹1,528) level to move up, which has turned highly resistive. 

Fantom (FTM)

Outlook: Uncertain

FTM’s price crash has nothing to do with the weak market sentiment, but it is due to the exit of its two key executives, Anton Nell and Andre Cronje. They have helped to shape the Fantom protocol and have left the DeFi industry, for good. Following the announcement yesterday (6 March), FTM witnessed a sharp decline in price, moving from $1.61 (₹128.63) to $1.32 (₹105.46). However, on a weekly basis, the drop is sharper, falling from the $2.06 (₹164.59) level.

Fantom market update
source: tradingview.com

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

FTM is currently trading closer to its key support level of $1.33 (₹106.26) level. It is likely to experience resistance at the 50 EMA* slope, and in the event of a break above, we might witness a trend reversal. Also, RSI is in an oversold condition; therefore, we might see a short-term burst in price. 

If it breaks below the $1.33 ( (₹106.26) level, it would be an extremely negative development, as the market has been holding on to the level for a very long time. The next major support levels are at the $1.13  (₹90.28) and $0.94  (₹75.106) levels.

The crypto market is likely to remain weak and volatile in the short to medium term. Therefore, be cautious with your investments, avoid FOMO, and make sure to DYOR before making any new investments.

*The Exponential Moving Average is one of the indicators crypto traders use to determine the trend of an asset’s value.

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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.

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Deepan Datta

Content Writer

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