Crypto Investing
28 Feb 2022

Week 9 Crypto Market Update: BTC, ETH, XTZ, SHIB, and ADA

Ananda Banerjee

Battered and bruised by the mounting geopolitical tensions, the crypto community has seen better weeks than this last one. However, thankfully, the invasion of Ukraine wasn’t the only thing influencing it over the weekend. The market did take heart from South Korea’s metaverse-friendly initiative, a massive surge in the number of non-zero Bitcoin addresses, and Decentraland’s first-ever Metaverse Fashion Week (MVFW).

The crypto market is down by almost 1.5%, which is still relatively positive considering the sharp lows it made over the weekend. Despite the hint of red, it doesn’t look scary as of today. Indeed it is a bit weary but has managed to ward off the more pressing demons right at the onset of week 9.

Here’s a quick update to help you understand the market conditions better.

Current Conversion Standard: $1 = (₹79.10)

On-Chain Metrics

Outlook: Supports HODLing

One may make sense of the broader scene by looking at the fate of crypto giant Bitcoin. Some bitcoin-holders did panic-sell over the past week. That’s understandable given the war-like scenes unfolding.

Bitcoin (BTC) inflow to exchanges increased momentarily, with close to 85,000 of its coins being pushed into the exchanges for initiating trades on 24 February.

On-chain metrics

Source: Chainalysis

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

Things improved significantly on 26 February 2022, but the inflow volume went down by almost 60,000, to settle close to 22,760 BTC. This metric above shows that people panicked but quickly gathered their wits to go back to asset HODLing.

Fear-and-Greed Index

Outlook: Volatile

The crypto market is fearful, and this emotion doesn’t require any second-guessing for now. The Fear-and-Greed index is languishing at 20 today, dropping 5 points week-on-week.

Some might consider this an opportunity to buy, but we would ask you to instead watch developments from the sidelines, do your own research, and wait for the market to assume an actual trend before proceeding.

For starters, you might want to wait for the Fear-and-Greed levels to move above 35 and stay there for at least a week before you consider new options.

Fear and Greed

Source: Alternative.me/Fear-and-Greed Index

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

With these broader metrics out of the way, let’s shift our focus to the key crypto players this week.

Bitcoin

Outlook: Uncertain

Despite dipping quite a bit on negative global cues, BTC is trading flat and seems to have lost only 1% so far today. Check the everyday BTC to INR rate. 

As per the hourly chart below, BTC trades in a symmetrical triangle pattern. It needs to decisively break either of the trendlines to have any chances of following a clear trend.

BItcoin

Source: Trading View

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

If BTC breaches the ascending trendline, it might experience support at $37,385.43 (₹29,57,187.513), below which it might drop further. For any possible moves on the upside, it needs to break the 100-EMA* line (Blue) with conviction, in the figure above, followed by the descending trendline.  If it does, $39,360 (₹31,13,376) might act as a strong resistance. For now, RSI** is trading near 50 or the demand zone, which is a tad optimistic for this crypto asset. Buy BTC in India at the best rate.

*EMA is the Exponential Moving Average.

**RSI is the Relative Strength Index.

Ethereum

Outlook: Bearish

Ether (ETH) has dropped by over 4% today, pushing it perilously close to the key support levels. As per the hourly chart below, ETH is trading at $2627.98 (₹2,07,873.218), close to its immediate support level of $2,633 (₹2,08,270.30). If ETH dips from here, it might find support at $2,559.33 (₹2,08,270.30). Check the current ETH to INR price. 

Ethereum Week 9

Source: Trading View

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

In case ETH manages to move up from its current location, there are multiple resistance levels at $2,697 (₹2,13,332.70) and $2,759 (₹2,18,236.90), respectively. However, for this crypto asset to have any chance of moving up, the 20-EMA (red) line needs to cross above the 50-EMA (black) or the 100-EMA (blue) line. Also, the hourly trading volumes are quite low, hinting at some bearishness at the counter.

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Tezos

Outlook: Steady/Moderately Bullish

Tezos, one of the famed Ethereum challengers, has been trading flat for over a month now. Still, if you pull the hourly chart and look closely, you might be able to find a few optimistic signs. Currently trading at $3.17 (₹250.75), its token XTZ seems poised to complete the rounded-bottom formation. It managed to form another U-shaped pattern a few trading sessions back, resulting in a short rally of sorts.

Tezos

Source: Trading View

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

If XTZ continues to move up from its current location, it might have to break the strong resistance at $3.27 (₹258.66) to have any chance of moving higher. If the pattern breaks and XTZ falls from here, $3.04 (₹240.46) might be a strong support zone. The MACD* line is slowly moving up, hinting at building momentum.

*MACD refers to the Moving Average Convergence/Divergence

Shiba Inu (SHIB)

Outlook: Volatile

After hitting lows of 0.0000206 (₹0.00163) on 24 February 2021, SHIB has recovered significantly to currently trade at $0.00002381 (₹0.00189). Despite the SHIBA INU price drop, it is still in green on a month-on-month basis, with gains closing in on 10%. The Bollinger Bands seem to be squeezing, hinting at a breakout in either direction, as per the hourly chart below.

Shiba Inu

Source: Trading View

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

For SHIB to move up from its current spot, it needs to breach the strong resistance at $0.00002423 (₹0.0019). If the asset dips from here, it might need to first break the middle Bollinger Band (orange line) to eventually find support at $0.00002308 (₹0.00182). Here’s where you can convert SHIB to INR.

Cardano

Outlook: Uncertain

Currently trading at $0.875 (₹69.212), Cardano’s token ADA still seems to be in the corrective phase for now. As per the hourly chart below, it moves in an ascending channel pattern and needs to touch the upper trendline once more to break out.