This high market cap is a surprise to many, as the project has no active developers and is just a commemorative coin, so the current rally is reminiscent of the excesses during the ICO boom in 2017.
Rallies like Dogecoin indicate that several traders have gotten into the game and are looking to get rich overnight. The only positive sign is that the mania has not spread to other rooms. When this happens, crypto markets will likely see a sharp correction to shake out the weak hands.
CNBC presenter Jim Cramer has become one of the first celebrities to report that he has closed half of his bitcoin (BTC) position. While Cramer’s sale is an isolated event, he warns that not all professional investors who have recently become bitcoin enthusiasts will be HODLERS in the long run.
Daily indicators for the crypto-currency market. Source : coin360
If institutional investors rush to get out, it could lead to a major correction in the various cryptocurrencies. Traders should be wary of irrational exuberance and not get carried away with FOMO-based trading, as it is better to stick to a trading plan and think about long-term prospects than to dream of sudden wealth.
Let’s look at the charts of the top 10 cryptocurrencies to identify critical support levels and outline various bullish and bearish scenarios.
The Bulls failed to break out of the 13 zone. April from the $60,000 primary resistance area to $61,825.84 to take advantage and consolidate. The price of bitcoin fell on the 14th. April after hitting an all-time high of $64,849.27, and bulls are now trying to break through the $60,000 level to support it.
Daily chartBTC/USDT. Source: TradingView
If successful, the BTC/USDT pair could make another attempt to resume its upward trend. A break of $64,849.27 could herald the next phase of the uptrend, which could lead to $69,540 and then $79,566.
However, a negative divergence in the Relative Strength Index (RSI) warns of a possible correction. It is interesting to note that the price changed direction when the RSI approached the downward trend line.
If the price drops below the 20-day exponential moving average ($59,427), it would be the first sign that buyers could lose their grip. A break below the 50-day simple moving average ($55,814) would reinforce the idea that a deeper correction is likely.
The bulls might try to stop the decline at $50,460.02, but if this level is broken, the pair might fall back to the critical support at $43,006.77.
Ether (ETH) extended its uptrend and reached an all-time high of $2,545.80 today. Profit-taking by traders has pushed price back to $2,300, but the long tail of the daily candle shows that bulls are still buying on dips.
Daily ChartETH/USDT. Source: TradingView
If price recovers and the bulls push it above $2,545.8, the ETH/USDT pair could begin the next phase of the uptrend. The next upside target is at $2,745 and then the psychological $3,000 level.
The rising 20-day EMA ($2,131) and the RSI in overbought territory suggest that the path of least resistance is up. This bullish view will be negated if price turns lower and breaks below the 20-day EMA. Such a move could push the price to $1,925.10 per ounce.
Binance Coin (BNB) formed at 14. April a doji candlestick pattern, followed by an intraday candlestick pattern on the 15th. April. Both positions indicate indecision on the part of the bulls and bears. Today, this uncertainty has been put to an end.
Daily chart NBB/USDT. Source: TradingView
On a slightly positive note, however, the bulls are defending the 38.2% Fibonacci retracement level at $483.95, as seen in the long tail of the daily candle. The bulls will now try to push the NBB/USDT pair above the all-time high at $638.56 and resume the uptrend.
Conversely, a break below $483.95 could push price back towards the 20-day EMA ($437). A break below this support would mean traders are looking for an exit, which could lead to a pullback to the $348.69 break.
The XRP is currently correcting a sharp rise. Bulls are trying to protect initial support at the 38.2% Fibonacci retracement at $1.48, as seen in the long tail of the daily candle.
Daily chart XRP/USDT. Source: TradingView
The XRP/USDT pair may now consolidate between $1.48 and $1.96 for a few days before initiating the next trend move.
A break above $1.96 could usher in the next phase of the uptrend, which could lead to $2.54. Rising moving averages and RSI in overbought territory show that the bulls have taken the upper hand.
Contrary to this positive assumption, the pair could fall below support at $1.48 to the EMA 20 ($1.18). Such a move would indicate a weakening of the upward momentum, which could delay the next phase of the uptrend.
Dogecoin has gained ground over the past three days, leading to a huge pump today. This shows that more and more traders are getting into trading because of FOMO.
DOGE/USDT Daily Chart. Source: TradingView
Usually this kind of buying frenzy ends with a big topper. After buying the last bull, the price reverses and the stunt begins to decline. It’s hard to predict a top during such a frenzy, but the psychological level of $0.50 could act as a barrier.
A post-peak decline in the DOGE/USDT pair is probably smart. The usual 38.2% Fibonacci retracement level may not hold and the pair is likely to drop to the 61.8% Fibonacci retracement level at $0.20.
Traders need to control the urge to get into such trades even at the risk of losing some profits.
Cardano (ADA) has been the subject of a fierce battle between the bulls and the bears for $1.48 over the past two days. Although the bulls managed to push the price above $1.48 today, the bears quickly managed to pull the price back below that level.
Daily chartADA/USDT. Source: TradingView
After a third failed attempt to stay above the $1.48 level, the bulls seem to have abandoned their positions today, resulting in the candlestick pattern of the day.
However, the long tail of today’s candle suggests that the bulls have been aggressively buying the dips towards the 20-day EMA ($1.28). The bulls could now make another attempt to take the price above the $1.48-$1.55 resistance zone.
If successful, the ADA/USDT pair could resume its uptrend and head towards $2. Conversely, a break below the moving averages could give the bears a chance to push price down to $1.03.
The Bulls pushed Polkadot (DOT) to 13th. April above the $42.28 level, but failed to break through the all-time high of $46.80. This indicates a lack of demand at a higher level. The altcoin dropped below $42.28 today and the bears will now try to push the price below the 20-day EMA ($40).
DOT/USDT Daily Chart. Source: TradingView
If they do, the sell-off may persist as bulls rush to cover their positions. Such a move could push the DOT/USDT pair down to $32.50 and then to critical support at $26.50.
Contrary to this assumption, a price rebound on the 20-day EMA would mean that the bulls haven’t given up yet. They will make another attempt to push the price above the $46.80 resistance level and resume the uptrend.
Litecoin (LTC) is in a strong uptrend. The bears tried to initiate a correction today, but the bulls aggressively bought the lows, as you can see on the long tail of the daily candle. The trend reversal may have surprised some aggressive bears, which may be the reason for the uptrend.
Daily chartLTC/USDT. Source: TradingView
The LTC/USDT pair broke through the $307.42 target area, paving the way for a rally towards $374. However, an RSI above 76 indicates caution, as the pair has entered a correction several times in the past when the RSI value reached around 80.
The critical support to keep an eye on is the 20-day EMA ($241). A break below this support would be the first sign that the bulls are tired and that a deeper correction is likely.
Uniswap (UNI) has reached the 15. April a new all-time high, but bulls struggle to hold higher levels. If the price does not continue to rise after breaking through important resistance, this indicates exhaustion.
daily chart UNI/USDT. Source: TradingView
However, the long tail on the daily candle suggests that the bulls are still buying on the sauce. If buyers manage to push the price above the all-time high of $39.60, the UNI/USDT pair could reach $43.43 and then $50.
On the other hand, if price falls and breaks below the 20 EMA ($32), some of the aggressive bulls who bought the breakout at $35.20 might buy back their positions. Further liquidation could bring the price down to $27.97.
Chainlink (LINK) is mounted on the 14th. April above the overarching resistance of $36.93, signaling a new uptrend. Altgoin reached a record high of $44.33, triggering a lucrative booking.
Daily chartLINK/USDT. Source: TradingView
However, the long tail of the daily candle suggests that the bulls bought aggressively in today’s drop to $38.52. This suggests that sentiment remains positive and the bulls are buying at lower levels.
Buyers will now try to resume the uptrend by pushing the price above $44.33. If they succeed, the LINK/USDT pair could reach $50.
If, contrary to this assumption, price turns lower again and breaks support at $36.93, the pair could slip to the 20 EMA at $34. If this support is broken, the decline could continue to the 50-day SMA ($30).
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.
Market data is provided by the HitBTC exchange.
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