3 Cryptos Poised to Break Out of Consolidation: Ethereum, Binance Coin, Ripple
Investing.com | Feb 01, 2024 13:09
- Cryptocurrency markets are facing renewed selling pressure as a whole in February, thanks to the Fed's comments.
- However, some cryptos have been in a sideways trend and could be bracing for a breakout.
- In this article, we will take a look at cryptos apart from Bitcoin which could do well in the coming weeks.
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Cryptocurrency markets kicked off February on a negative note following signs of recovery last week.
Some cryptocurrencies faced intensified downward momentum, attributed in part to comments made by the Fed yesterday, contributing to an overall pessimistic outlook.
The upcoming release of US nonfarm payrolls data tomorrow adds an element of uncertainty, potentially leading to increased market volatility.
If the employment data suggests an easing labor market, it might temporarily alleviate pressure in risk markets, as the Fed closely considers labor market conditions in its interest rate decisions.
This week, external factors have significantly influenced cryptocurrency markets, with Bitcoin consolidating after the introduction of ETF.
Meanwhile, altcoins in the top 10 have been consolidating. After fending off selling pressure in the last couple of weeks, these cryptos could be preparing for a breakout.
h2 1. Ethereum: Can Bulls Push Past $2,365?/h2Ethereum found support once again at this point after testing $ 2,200 last week in the correction that started after the general uptrend that continued for 3 months.
The $2,200 level, which formed the bottom line of the band movement during the consolidation process in December, will continue to be followed as a solid support for Ethereum.
h2This level also coincides with the 3-month EMA and remains valid as a price zone that needs to be protected to prevent the correction from expanding.
In the upper region, we saw that the $2,365 level was the closest resistance price this week. If Ethereum can find support at current levels for the rest of the week, daily closes above $2,365 will become important.
A possible breakout could technically trigger ETH's rapid appreciation. As the Stoch RSI above the resistance price reflects bullish potential, the ETH price will start to move above the short-term uptrend again.
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With a possible positive outlook, we could see ETH surpassing the January peak of $2,600 region and quickly rising towards $2,800.
In the lower region, if $ 2,200 is broken with daily closes, we can see that ETH may retreat towards the $ 1,950 - $ 2,080 range, this time with selling pressure.
h2 2. Binance Coin Eyes Breakout After Support Test /h2After starting the year by testing $330, Binance Coin entered a correction phase by starting to move in a falling channel.
Having tested the upper band of the channel once earlier in the week, BNB is looking for support at the midline today after being rejected at this point.
h2The average level of $ 295 will be followed as the first support point for BNB.
If the reaction from this point strengthens, the $ 300 level will appear as psychological resistance, and especially the determined crossing of the $ 310 - $ 320 range will be effective for the continuation of the uptrend.
In a possible upward breakout, $ 350 will come to the agenda again and then we can see that the momentum may continue towards the $ 400 region.
In the lower region, there may be a retracement towards $ 275 - $ 280, which corresponds to the lower band of the channel below $ 295.
h2 3. Ripple: Is This the Bottom for XRP? Eyes on Key Resistance for Reversal/h2Ripple was the cryptocurrency that deepened the correction phase the most among the cryptocurrencies with high market capitalization.
After losing its last resistance level at $0.52 this week, XRP fell to below $0.5, largely giving back the gains of the general uptrend that started in October.
According to the current outlook, the closest support point for XRP is currently at $0.47. If this support zone is lost, XRP may fall as low as $ 0.41.
In a possible comeback, the 0.51 - 0.52 dollar region will be followed as the first resistance area. In case of a weekly close above this region, a rise towards the $ 0.56 - $ 0.59 level would be key.
This level stands as an important region for XRP to continue its uptrend.
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