Market analysis: BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, LUNA, UNI

Bitcoin's rally above $50,000 appeared to be getting a boost from institutional buyers looking to hedge their portfolios against rising inflation, JPMorgan said in a note to clients on Oct. 7. Analysts at the bank speculate that institutional investors may prefer bitcoin over gold as a better hedge against inflation.

A recent study titled “Sharpe Ratio of Cryptocurrencies and Traditional Investment Models,” conducted by crypto asset managers Iconic Funds and Cryptology asset Group, shows that adding cryptocurrencies to any portfolio increases portfolio returns and improves risk Return performance.

Daily cryptocurrency market performance Source: Coin360

Mike McGlone, senior commodity strategist at Bloomberg, said in the Bloomberg Galaxy Crypto Index for October 2021 that $50,000 could be a strong support level for Bitcoin during the fourth-quarter decline.

Will the recent rise in Bitcoin and altcoins lure traders into profit-taking, or is this the start of a long-term uptrend? Let’s take a look at the charts of the top ten cryptocurrencies.

BTC/USDT

Bitcoin witnessed profit-taking on Oct. 7, but the failure of the bears to pull Bitcoin price below the $52,920 breakout level is a positive sign. The bulls attempted to resume the upside on Oct. 8, but the long wick that day suggested a sell-off at higher levels.

BTC/USDT daily chart source: TradingView

The first support on the downside is $52,920, but if the bears sink the price below that level, BTC/USDT could drop to the psychological $50,000 level and then to the 20-day exponential moving average (EMA) (48,285 Dollar).

The rising 20-EMA and relative strength index (RSI) sitting near overbought territory point to a positive for buyers. If the price bounces off the 20-EMA, the bulls will make another attempt to resume the uptrend.

A break and close above $56,100 could push BTC/USDT to $60,000, where bears could form a strong resistance. This positive view will be invalidated if the price falls below the 50-day simple moving average (SMA) ($47,342). BTC/USDT could then retest the key 100-SMA support ($42,691).

ETH/USDT

Ethereum rallied back above the current resistance at $3676.28, but the bulls may find it difficult to sustain the price above this resistance. The RSI is close to a downtrend line, which could act as resistance.

ETH/USDT daily chart source: TradingView

If the price turns down from current levels, the first level of support lies at the 20-EMA ($3324). A strong bounce from this level would indicate that sentiment remains positive and traders are buying on dips.

This will increase the chances of a rally to strong overhead resistance at $4027.88. Conversely, if the price falls below the 20-EMA, ETH/USDT could drop to the 100-SMA ($2,899).

BNB/USDT

The bulls are struggling to keep BNB above $433, which shows demand drying up at higher levels. On Oct. 8, the price fell back below $433 and the bears will now attempt to drag the price below the 20-EMA ($409).

BNB/USDT daily chart source: TradingView

If they succeed, BNB/USDT could drop to the 100-SMA ($379). Such a move could increase the chances that BNB/USDT will remain range-bound between $320 and $450 in the coming days.

On the other hand, if the price bounces off the 20-EMA, it will indicate that sentiment remains positive and traders are buying on dips. The bulls will then make another attempt to clear the $450 barrier above and start an upward move towards $518.90.

ADA/USDT

After several failed attempts over the past few days, the bulls managed to push and close Cardano (ADA) above the 20-EMA ($2.25) on Oct. 7. However, the day's long wick shows that bears are active at higher levels.

ADA/USDT daily chart source: TradingView

Price action over the past few days has formed a symmetrical triangle pattern, suggesting that the bulls and bears have yet to decide on the next directional move. The 20-EMA and 50-SMA ($2.47) are flattening out, and the RSI is near 50, suggesting a balance between supply and demand.

If the price turns higher and breaks the triangle resistance line, demand will tilt in favor of the bulls. Subsequently, ADA/USDT may rise to $2.47, and the bears may form a strong resistance again. A break above this level would open the door for a move up to $2.80.

Conversely, a break below the support line of the triangle could drag the price down to the 100-SMA ($1.96).

XRP/USDT

XRP formed an intraday candlestick pattern on Oct. 7, indicating indecision between bulls and bears. The bulls attempted to remove uncertainty to the upside on October 8, but failed to clear the hurdle above the 50-SMA ($1.09).

XRP/USDT daily chart source: TradingView

After bulls push XRP/USDT above the 50-SMA, or bears pull XRP/USDT below the 20-EMA ($1.03), the next directional move could begin. A break and close above the 50-SMA could pave the way for a move to $1.41.

Alternatively, if the 20-EMA breaks, the price could drop to the 100-SMA ($0.92). The bulls have defended this support level in the previous two retests and may try to do so again.

SOL/USDT

The bears have failed to pull SOL below the 20-EMA ($153) for the past two days, which suggests that the bulls are defending this level vigorously. This may have attracted buying from short-term bulls on Oct. 8, leading to a strong rally.

SOL/USDT daily chart source: TradingView

Buyers will now make another attempt to push the price above the 61.8% Fibonacci retracement level of $177.80. If they can succeed, SOL/USDT could rise to $200 and then challenge the all-time high of $216.

Alternatively, if the price turns down from current levels or overhead resistance and breaks below the 20-EMA, SOL/USDT could fall back to the 50-SMA ($137). The bulls may attempt to defend this level, but if they fail, the decline could extend to $116.

DOGE/USDT

DOGE turned down from a downtrend line on Oct. 6, but the bears failed to pull the price below the 20-EMA ($0.23), suggesting buying at lower levels.

DOGE/USDT daily chart source: TradingView

The 20-EMA has turned up and the RSI is in positive territory, suggesting that the bulls have the upper hand. The bullish momentum could heat up if buyers push the price above the downtrend line.

Subsequently, DOGE/USDT could rise to $0.32 and then to $0.35. Contrary to this assumption, if the price reverses direction from the downtrend line again, the probability of a break below the 20-EMA will increase. DOGE/USDT could then drop to the support zone of $0.21 to $0.19.

DOT/USDT

DOT broke resistance at $33.60 on Oct. 7, but the long wick that day indicated a sell-off at higher levels. The intraday candlestick pattern shows indecision between bulls and bears.

DOT/USDT daily chart source: TradingView

The RSI has reached a downtrend line, which has been acting as a strong resistance. If the price turns down from the current levels, the bears will attempt to drag DOT/USDT below the $28.60 support.

Alternatively, if the bulls push the price above $35.31, DOT/USDT could rise to $38.77. Bears may try to defend this level aggressively, but if bulls overcome this resistance, DOT/USDT could rise to $42.60 and then to $49.78.

LUNA/USDT

Terra Protocol’s LUNA token rallied sharply and broke the overhead resistance at $45.01 on Oct. 7, but the bulls failed to clear the overhead $49.54 barrier on Oct. 8. This shows that the bears continue to defend the psychological $50 level.

LUNA/USDT daily chart source: TradingView

On October 8, the price fell back below $45.01 and the bears will attempt to pull the price down to the 20-EMA ($39.63). This is an important support level for the bulls, as a strong bounce from here would indicate that sentiment remains positive and traders are buying on dips.

This will increase the probability of a break above $50. If this happens, LUNA/USDT could start the next uptrend to $56.97 and then $65.97. Conversely, a break below the 20-EMA could lead to a drop to the 50-SMA ($34.92).

UNI/USDT

UNI appears to be forming the right shoulder of a bullish inverted head and shoulders pattern, which will be completed upon a breakout and close above the neckline.

UNI/USDT daily chart source: TradingView

This move could push the price to $31.41, and if this level is breached, the rally could extend to the pattern’s target at $36.98. The 20-EMA ($24.50) has started to turn up and the RSI is just above the midpoint, suggesting a slight advantage to the bulls.

This positive view will be invalidated if UNI/USDT turns down from current levels and breaks below the key support at $22. If this happens, traders may rush to exit, pulling UNI/USDT down to $18.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.