Alejandro Zala, Country Manager of Bitpanda Spain, shared with Cointelegraph en Español his analysis of the cryptocurrency market during this past week.
Zala, this time told us about this week’s chart, which, in his opinion, has not shown a significant change in trend. He further described that the cryptocurrency market continues to struggle and trade at low levels for the third month in a row.
“The monthly chart is showing signs that prices are bottoming out, while the intraday charts remain volatile,” Zala commented.
On the other hand, he mentioned the index of fear and greed of cryptocurrencies that has been found at the time of writing this note at the level of 22/100, close to its historical low, which indicates “extreme fear” and that even now it remains the dominant sentiment, with a level of potential price action bottoming out.
“The fear and greed index has historically been a great indicator of reversal signals, showing that many sellers have already left the market, meaning buyers will soon take over. However, it does not provide timing information or clearly predict highs or lows. However, it can suggest when the market is cheaper.” she said.
Bitcoin is in a falling wedge pattern
According to Zala, bitcoin has been showing bearish behavior for a few weeks now and has mainly moved within the wide range of 35,000 to 45,000 euros, forming what he calls a falling wedge pattern in trading parlance. “A falling wedge is a bullish pattern and a breakout of it would launch a new uptrend, while a breakout means a continuation of the current trend,” Zala explained.
He also mentioned that on the weekly chart, BTC is in a range and closed higher, but on the daily chart it is still volatile, albeit with little volume.
“Momentum indicators are picking up, suggesting that the bulls are slowly taking over.” Zala added.
ADA regains its strength
About Cardano, Zala had this to say: “Cardano has outperformed all major cryptocurrencies in the last seven days and ADA has seen a price rise of more than 20%. It is now the fifth largest cryptocurrency by market cap. The price broke out of the falling wedge and broke above its 50-day moving average, indicating that its bull run could be extended.”
He also touched on SundaeSwap, the Cardano-based decentralized exchange (DEX), which has just launched on the mainnet. “This is a great announcement for Cardano, as the project will now represent a direct competitor to popular blockchain-based decentralized exchanges such as Uniswap, which runs on Ethereum, and Pancakeswap, which runs on Binance Smart. DEXes are currently one of the most valuable projects in cryptocurrencies“Zala commented on the new Cardano DEX.
“This is the first big milestone of the year for the Cardano foundation, which has also revealed that other projects will be launched,” he added.
Ethereum struggles to take a positive turn
Regarding Ethereum, Zala commented that the price of Ethereum dropped from the €2,950 zone, and is now trading below the 50-day SMA on the four-hour chart, approaching the 2,700 support level. €.
“For the past week, Ethereum has oscillated in a narrow channel between support and resistance levels, while the Relative Strength Index is sinking into oversold territory,” he said in his analysis.
IOTA has been stuck at the same level for two months
Regarding IOTA, Zala mentioned that it touched the resistance level of 1.05 euros, but fell back below 1 euro following the general market correction. “It has been trading in this range for two months, with bulls and bears vying for control,” he noted.
“The price has bounced several times from the horizontal zone of 0.9 euros, each time creating long wicks. However, as long as the price trades above this level, there is a chance that the structure remains bullish,” he said.
BEST moves in positive direction
Lastly, Zala commented the following about BEST: “BTC price remains under downward pressure and illiquid while BEST is moving in a positive direction. The BEST/BTC pair shows the Bitpanda ecosystem token outperforming Bitcoin, with BEST rising to the first resistance level of 0.00002540 BTC.”
He further explained that BEST broke a long trend line and touched the support level of 0.81 euros.
“The token has often reached this support zone in the past, which suggests that buyers are strongly holding their positions at this level,” he said.
Disclaimer: This material is intended as a commentary on economic or market conditions and does not constitute financial analysis or recommendation. The analysis presented here corresponds to the Country Manager of Bitpanda in Spain and under no circumstances is an investment recommendation by Cointelegraph. Anyone, before investing, must carry out their own research and is responsible for their own decisions.
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