Bitcoin, Solana, and Tron: Poised for a Bullish Breakout Amid Sideways Action
The top 10 cryptos are not currently in a bull market, but BTC, SOL, and TRX have potential because they are experiencing sideways action. The longer this sideways action, the bigger the move.
Summary
Most of the cryptos are in a downtrend, but Bitcoin, Solana and Tron are showing a sideways price action to pay attention too.
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Market Review
I used turboscribe.ai to create the transcription below and did some editing.
Let's review what happened this week in the crypto market.
Per usual, we will review the top 10 cryptos according to coin market cap, excluding the stablecoins.
Bitcoin · BTC
Last week, we noted that Bitcoin had breached the downward trend line and was attempting to maintain its position above the 50-day moving average.
This week, it has successfully maintained its position above the downward trend line, which is a positive development.
The price has been exhibiting sideways movement and has consistently remained above the 50-day moving average for the past three days.
We anticipate that the price should either remain in this sideways trend.
This approach allows the 50-day moving average to provide time for the price to stabilize and potentially start curving upwards, which is the desired trajectory.
While the price remains below the 200-day moving average, it has been exhibiting an upward sloping trend.
A sloping upward moving average for the 200-day suggests that there is still substantial long-term strength in the market.
Apart from the price maintaining its position above the 50-day moving average, the next key indicator we are looking for is the price surpassing the 200-day moving average or the previous low point, which is approximately $89,163.
Based on the current trajectory, it is highly probable that the price will surpass the previous low point before it reaches the 200-day moving average.
This suggests that the 200-day moving average will intersect and exceed the previous low point.
Bitcoin has consistently demonstrated its volatile nature, oscillating within a trading range.
The trading range commenced on Friday, February 28th, 2025, and experienced a bounce-off on March 10th and 11th.
During the market sell-off, it slightly undercut the range, but it recovered within three days and has maintained its position above it.
This sideways price action is precisely what we anticipate, as the longer it persists, the greater the likelihood of a significant price jump.
Ethereum · ETH
Ethereum continues its downward price action, yet it hasn’t reached the downward trend line or the 50-day moving average.
However, the 50-day moving average appears to be sloping downward and may intersect.
This assumes the Ethereum price remains stagnant.
It’s possible the price will continue downward, and the 50-day moving average will still be far away.
Additionally, the 200-day moving average is also sloping downward, which is not a positive sign.
Until there’s a significant change in the price, Ethereum remains an investment to avoid.
XRP
XRP continues its downward trend.
It hasn’t yet reached the downward trend line.
Fortunately, the 50-day moving average appears to be leveling off.
This could be a temporary setback, similar to late March when it seemed to be flattening out but then fell again.
It’s still too early to predict XRP’s future direction.
It has been holding the 200-day moving average, which continues to slope upward.
If the price remains above the 200-day moving average and its trajectory persists, we should expect the two lines to intersect in mid-May.
If the price can hold the 200-day moving average and stay above it, the market will have time to determine whether it wants to move upward or downward sometime in mid-May.
Conversely, if the price falls below and stays below, we should be concerned.
BNB
BNB has been encountering resistance at the downward trend line.
It keeps approaching it and bounces down repeatedly.
In late March, it briefly managed to stay above the trend line but then fell and has since continued to find resistance there.
It has remained below the trend line ever since.
Now, the price is starting to track the 50-day moving average more closely.
The general trend of the 50-day is still downward.
If the current trend continues, the 50-day moving average line may eventually surpass the downward trend line, making it more challenging for the price to attempt to break above it.
Additionally, the price remains below the 200-day.
The 200-day is relatively flat.
We anticipate the price to surpass the downward trend line, the 50-day moving average, and maintain a stable position on the 200-day.
Solana · SOL
Solana has been experiencing sideways movement since early March.
Notably, it has surpassed the 50-day moving average and crossed above the downward trend line since late March.
The 50-day moving average line is gradually flattening out.
As we mentioned earlier, the sideways moving action is a positive sign.
It would be beneficial if the price remained sideways for a bit longer, allowing the 50-day moving average to stabilize.
However, the price is still significantly below the 200-day moving average.
When the price starts moving upward and crosses above the aggressive buy zone, which was the low before the peak in mid-January, we should anticipate a move upward.
The longer the price stays above the 50-day moving average, the greater its strength will be.
This one is worth keeping an eye on.
Dogecoin · DOGE
Dogecoin continues to be significantly below its downward trend line.
It’s approaching the 50-day moving average line, which remains downward.
While it’s not entirely sideways, the trend is not as obvious as it might seem.
Drawing a trading range based on the peak price on March 26 and the low price on March 11 reveals a very narrow trading range.
If the price stays within this range, the 50-day moving average could potentially flatten out.
This could lead to different behavior in Dogecoin, but as of now, it’s still in a downtrend.
Tron · TRX
Tron has been trading within a favorable range since January 4th.
Interestingly, the price has been consistently tracking the 50-day moving average line, which has stabilized.
This is a positive sign.
We’ve set the buy zone at the peak of January 4th.
The price has remained above this level, bouncing off it a few times, but it has never breached the 200-day moving average line.
Not only is the price within the trading range based on price, but it also falls within the range defined by the 50-day and 200-day moving averages.
My expectation is for the price to remain within this range for an extended period, followed by a significant upward movement into the buy zone.
Cardano · ADA
The price of Cardano continues its downward trend, currently below the downward trend line.
It is also below both the 50-day moving average and the 200-day moving average.
To see a potential change in the price, we need to observe it surpassing either of these moving averages.
Since the 50-day moving average is lower than the 200-day moving average, we should aim for the price to exceed the 200-day moving average, maintain this position for a while, and allow the 50-day moving average to stabilize.
If this happens, we might witness a significant price change.
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Terminology
Buy zone: The optimal price to buy. Investors would get the best long term gains in this zone.
Hold zone: The price is above the buy zone. Investors could continue to dollar-cost average (DCA) in this zone, but risk less optimal long term gains.
Warning zone: The price has lost momentum and is below the 50-day moving average. Investors should consider whether they feel comfortable holding or planning an exit.
Danger zone: The price has lost support and the potential for lower prices is much higher. Investors could hold for the long term as long as the 50-day and 200-day moving averages are not sloping downward. Ideally investors should consider exiting and buying again when the price has gained support and momentum.
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Disclaimer: The author is not a financial advisor. The information provided herein is not financial advice and should not be construed as such. This content is intended solely for educational purposes. The author will not be held liable if you decide to used this material as a basis for any financial decision-making. Investing involves risk, including the potential loss of your invested capital. Only invest what you are willing and able to lose.