Be careful not to fall asleep – The token exchange sector has been very resilient since the beginning of the bearmarket. While the Bitcoin and Ethereum have lost weekly supports for several months, BNB and FTT, retain their supports. In this complicated macroeconomic situation, the two behemoths continue to impress. Could they still hold the market or are there already signs of weakness? This is Exchange Token Weekly.
This market analysis is brought to you in collaboration with CryptoTrader™ and its algorithmic trading solution finally accessible to individuals.
The Exchange Token Index stagnates
The index remains solid and continue to keep the support. Buyers never give up:
The primary tendency of the index is bullishbut it must absolutely keep the support at $5,800. Currently, buyers are trying to hold the dual bracket :
- the first stop (0.382 Fibonacci retracement) to $6,900 : this is a favorable area for buyers in an uptrend.
- the bracket at $6,600 : zone which allowed during bounce several times.
The price has built an “M top” and could head into the reloading area (0.618-0.786 Fibonacci retracement). To avoid this scenario, buyers can reverse the “M top” by reinstalling a bullish momentum. For this, the price would have to close above $7,100.
The momentum is still hesitant even if it evolves above the bearish trendline. The RSI should definitely leave this dangerous zone where sellers can still regain control.
We must not forget that the index has kept the lowest of the year 2021, the token exchange sector is one of the most resilient. It will be necessary to be attentive to this sector in the event of a return to the rise of risky assets.
Binance Coin holds support at $275
We were talking about it last week, the BNB must maintain this level to avoid sliding towards the reloading area Between $215 and $240 :
The course is on a dual bracket and buyers are not giving up. the first stop doesn’t seem to want to give in and a fence above $300 will relaunch the bullish momentum. Be careful, since the local top, the sellers have regained control of the price and they can push the asset into the reloading area. A fence under $260 would show that the sellers continue to have the upper hand, whereas a close above $300 would show that buyers are regaining control. Those are the two levels watch carefully for what happens next.
The RSI is hesitant and must extricate itself from the bearish trendline to allow buyers to benefit from the momentum.
the BNB keep on outperform bitcoin, but buyers need to keep pushing and maintain momentum with troughs and ascending peaks:
BNB continues to outperform Bitcoin. The momentum formed a slight bearish divergence and this could lead to a little more than tidy between the two terminals identified on the graph. Divergence simply means that buyers are running out of steam and need to regain strength. In bullish momentum, there can be several divergences without the price collapsing. Usually the price ranges until the buyers regain control.
Binance Coin is certainly more efficient than Bitcoin, but BNB does not appreciate against the dollar. This can be explained by the fact that the dollar is powerful right now. It would have to lose its strength for risky assets to regain value.
The FTX Token back at $24
The FTX exchange token is less strong than its BNB counterpart. The FTT is already in the reloading area Between $23.5 and $25.5 :
The course has been postponed to the level of the institutional bias, sellers continue to have control since this “M top”. In the reloading area, buyers have the opportunity to regain control. This is a bullish zone, but we will have to see if there is any reaction at the level of the support.
It will be necessary to avoid installing under the support, because the primary dynamics could then be questioned. The momentum is always hesitant and it seems that the bearish trendline pushed the RSI back again. Here again, it would be necessary to leave this zone to no longer be under the influence of sellers.
Against Bitcoin, FTT is showing some signs of weakness. There is nothing to panic about, but the pair must keep the support :
the bullish right triangle is a figure of bullish continuation, but the price is pulling out of the bottom of this chart pattern. The course is approaching support and buyers are going to have to defend it. A fall below the support would be very negative for this asset which has outperformed Bitcoin for over a year. The “V top” formed is brittleit seems possible that the price reacts at the level of the support to transform the “V top” into “M top” or to relaunch the dynamic.
The momentum has been pushed back to the level of the bearish trendline, the RSI divergesit is likely that the price will start to tidy before a bullish or bearish resolution.
Coinbase Retains Support Heading $90?
Last week, Coinbase’s price slipped below the bracket at $70. As the price obviously lost support, it was likely to find Coinbase at the next support level at $53. However, the buyers decided otherwise, they reacted and allowed the price to rise again:
The medium having been preserved, the next resistance on the road to Coinbase is the bearish trendline at $90. Sooner or later, this trendline must break if we want to see the price of Coinbase perform against the dollar. Be careful, the institutional bias rest bearish and could once again push back the course. Now that the buyers have shown themselves under $70 and that the sellers are blockedit is absolutely necessary to avoid allowing sellers to be able to exit without loss (breakeven).
The momentum is still in the hands of the buyers since the breakout of the bearish trendline. At the moment, there are no signs of weakness on the RSI.
the FTX Token is starting to show some signs of weakness against Bitcoin, but buyers can regain control at the support level. The token exchange sector continues to perform well, but this momentum must be maintained against Bitcoin. The dollar is still strong and this prevents risky assets from fully expressing themselves. If it loses its strength, token exchanges could be among the best performing in the ecosystem. Coinbase has recovered in extremis at the support level, would institutional players be interested in cryptocurrencies again?
Delegate the management of your cryptocurrencies while remaining in control of your funds? Nothing could be easier with the crypto-asset manager CryptoTrader™, a secure, easy-to-use and 100% automated trading tool.
