Is the token exchange sector ready to start rising again? – Usually in a bear market Bitcoin rules the market and altcoins follow its moves. Since the beginning of the year, the Binance coin and the FTX token are resilient and maintain a weekly support that BTC has failed to maintain. With bitcoin now trying to hold support at $19,000, can BNB and FTT rally higher? Here is the Weekly Token Exchange!
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The Exchange Token Index attempts to rebound
Recall that theExchange Token Index is an index created by the FTX platform which brings together the different token exchanges in order to be able to study the sector. In 2022, the sector is doing relatively well in a context of bear market. Here is the graph:
The clue is in a tidy Between $8,100 and $5,800. Last week, we were talking about the possibility of a rebound in the reloading area (0.618-0.786 Fibonacci retracement). The index is rebounding, the momentum is again bullish in the short term and institutional bias (EMA 9/ EMA 18) is bullish. Moreover, the course is breaking the bearish trendlinebuyers have the possibility to push the price up to the resistance which corresponds to the top of the range.
The momentum is bullishthe RSI retains the bullish trendline. Everything seems to be aligned for a continuation of the rise. In case of return to the charging areabuyers will need to defend the latest lows.
Binance Coin Stuck at $295
Binance Coin is solidit retains the first stop (0.382 fibonacci retracement). To resume a bullish momentum, it will be necessary to overcome the resistance at $295 and the next to $332. At the moment, BNB is stuck in a weekly range Between $332 and $215. The price moves on the other side of the bearish trendline (trendline which has been pushing back the price since November 2021), but it remains to cross the two resistors. If sellers manage to reject buyers at $295the price could fall in the reloading area, an area conducive to buyers. The price could, in this case, fall by more than 20% and meet between $217 and $242.
The momentum is bullishthe RSI recently bounced off the level of the bullish trendline. The momentum shows a bullish divergence with the fence above 57 of RSI.
BNB continues to outperform Bitcoin. Within a bear market and given the current macroeconomic context, this is a good performance:
Binance Coin is moving above the support and has recently rebounded at the level of institutional bias. The course is in a tidy (between the dotted lines), but it is now very close to breaking out of this range and starting to rise again. Technically, everything seems to show that the buyers have their hands on this pair.
The momentum is threatening, as it may continue to diverge in case of new low at the RSI level. To rule out any risk of a bearish divergence, the RSI would have to start rising again.
The FTX Token recovers at the support level
The FTT is much less solid than its friend the BNB. Still, buyers are pushing to keep the support :
Buyers showed up under the support and the course marks a slight DETOUR (purple area). Attentionthe course could quickly be rejected at the level of the institutional bias. Whatever happens, the price must change momentum on contact with the support and, for the moment, the bottom is still brittle. Buyers should definitely hold the latest low at $22.4 to try to change the momentum in the short term.
The momentum is brittle also, it will be necessary to find a healthy dynamic with troughs and ascending peaks (Dow theory).
Against bitcoin, the price finds resistance at the level of institutional bias as can be seen in this graph:
The price could continue to draw a tidy between the red terminal and the green terminal. For buyers, it is absolutely necessary to keep the support to avoid reintegration under it (red arrow). We see it against Bitcoin as well, the FTT is more brittle than BNB. To hope for a bullish scenario (green arrow), it will be necessary to overcome the resistance materialized through institutional means.
Momentum diverges since the last highs on this pair. If the price goes up again, it could quickly find resistance at the downward trendline of the RSI.
Coinbase tries to bounce back in the reload zone
Coinbase tries to build a market low, but the price could quickly find resistors on his way :
The price finds buyers at the level of the reloading area, but the rebounds remain timid for the moment. Also, the course could quickly find resistance at $82. To find a healthy bullish momentum, it will be necessary to break the bearish trendline which has been pushing the price back since November 2021. The institutional bias is always bearish, and this, despite the various attempts of buyers. Again, this shows that the course remains brittle.
The positive point comes from the momentum. In fact, this remains bullish and bounces again at the level of the bullish trendline. Coinbase must recover to show that institutional operators are again interested in cryptocurrencies.
the Binance Coin is very close to rising again against Bitcoin. It is one of the most interesting assets within this bear market. The FTX Token, on the other hand, shows more fragility, but it manages to maintain the support at $24. The BTC would have to start rising again for the token exchange sector to be able to express itself. For its part, Coinbase remains stuck under double resistance. It will be necessary to get rid of it to give bullish signals on this asset and show that the institutional players are ready to allocate a little more risk in their portfolio.
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