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Market Analysis

Weekly Technicals Pro – Volume 93

Updated: Aug 31, 2024
Published: Jan 31, 2022
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Open Interest has remained relatively stable over the past week, but we have seen the Funding Rate closing negative a little more often. This signifies that more short positions are being opened (shorts paying longs), which has often suggested that a bottom in price is near. Of course, it doesn't indicate when a bottom is set, and the price will reverse - as you can see back in May-July 2021.

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Disclaimer: Not financial nor investment advice. Only you are responsible for any capital-related decisions you make, and only you are accountable for the results.

Market Sentiment

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Market Indexes

Total Market Cap

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The Total Market Cap has closed slightly bullish, but it is still within the $1.35T - $1.75T range. More importantly, there is the closing of the monthly candle tonight, which will now be the market's focus.

Bitcoin

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We see the same being reflected in the Bitcoin chart. A slightly bullish candle, but a candle closure that was still within the $30,000-$40,000 range. With tonight's monthly candle closure approaching and Bitcoin's price close to the resistance, we could yet see a little more volatility. It's worth mentioning that a lot of the altcoins performance will rely heavily on how Bitcoin reacts around this $40k level. For now, the market overall remains bearish even though we've seen Bitcoin's price steadily move up over the last week. Whilst the funding rate suggests that a bottom may be near, the Fear & Greed Index also suggested that a bottom may be near. What neither of them does, is identify the timing of when the market will begin to reverse. We hope to identify that in the charts.

Ether

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Another chart that is similar to the preceding two. We've seen Ether test a daily support level ($2,150) and push back up to close the week near the $2,750 resistance. It closed underneath it, which keeps it in the $2,000-$2,750 range. But the monthly close is tonight, and $2,750 is also a key level for the monthly candle.

DOT

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As Bitcoin nears $40,000, it looks like altcoins just require a green light to rally. DOT has moved mostly sideways for just over a week but has been unable to close a daily candle above $19.40.

SNX

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Reclaiming $5.50 would have been the strongest indication of further upside towards $7.50. However, the weekly candle closed just below, despite recovering most of the previous week's loss. We'll monitor SNX daily, as a closure above will suggest a move to $7.50, but its price action will now depend more on that of Bitcoin's.

RUNE aligncenter size-large wp-image-196876

Since seeing the drop from $5.70 to $3.50 the week previous, RUNE has maintained $3.50 as support. Although an indecisive candle (Doji) doesn't indicate RUNE's next move, maintaining $3.50 is key for seeing any upside movement in the price. We can see that it's moved sideways and has $4.40 as resistance on the daily timeframe. So we'll be monitoring RUNE daily to indicate its next move.

SOLaligncenter size-large wp-image-196888

The past week has seen SOL fighting daily resistance around the $100 psychological level. From a weekly perspective, it's still midway between two key levels ($75 & $125)with a bearish structure. Of course, reclaiming $150 would change that structure at this moment in time.

SRM

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SRM has managed to maintain $2 as support, but our interest would lie in it being able to reclaim $2.88 on the weekly timeframe as the odds of upside from that level would be greater than where its price is currently.

FTT

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FTT is very much doing its own thing as it continues to range between $35 and $50.

MINA

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The delay of Snapps until Q2/Q3 left MINA vulnerable to a downside move. That move materialised, and we saw it immediately head for $2, now putting it in the $2 to $3 range. With MINA/BTC also being at support, it would be reasonable to expect a move towards the top of the range. Of course, this is reliant on BTC's volatility being reasonably low.

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The weekly chart confirms what we write on our daily analysis. The price is still declining, albeit not at such an accelerated pace. We're still anticipating a bottom between $3 and $5.

 

Disclaimer: Not financial nor investment advice. Only you are responsible for any capital-related decisions you make, and only you are accountable for the results.

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