Bitcoin Leads The Charge For the Altcoins
We reviewed the top 10 cryptos: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, and TRX (excluding the stable coins).
Summary
Thursday was a bullish day for cryptos.
Bitcoin jumps into the buy zone.
Ethereum and XRP break the downtrend and entered the aggressive buy zone.
Binance Coin made a good move and it’s midway through the aggressive buy zone.
Solana just entered the aggressive buy zone, but it needs to stay above it to prove it.
Dogecoin is trying to break above the trading range, which should cause a good move up if it does.
Cardano needs to clear $0.79 to show strength.
Tron is still stuck in the trading range, but it’s getting to closer to the top. We want to see it get above $0.275.
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Market Review
Let's review what happened in the crypto market this past week.
We will be reviewing the top 10 cryptos according to CoinMarketCap (except for the stablecoins).
Bitcoin · BTC
Bitcoin has had a really good move this week.
On Thursday, May 8th, the price jumped into the buy zone.
Today, on Friday, it is holding at the top of yesterday's price range.
The PIMM Score has been in the green and it's at 5, and it has been there since Tuesday, April 22nd.
The best time to buy when in the buy zone is on the lower half.
Buying on the upper half is also valid, but you run into the risk of it hitting resistance at the high and then bouncing down.
If you did not buy in the aggressive buy zone, right now is a good time to buy based on the likelihood of success.
Ethereum · ETH
Ethereum has been in the downtrend for a very long time.
We mentioned about the price being above the 50-day moving average.
Yesterday, on Thursday, the price had a big move and broke above the downward trend line and broke above support.
The support has been a low price since December 19, 2023.
Also, this support is resistance of the most recent peak from March 25th.
All indicators are starting to point towards strength.
The 50-day moving average line is flattening out, and the price is moving toward the 200-day.
Right now, we would classify this as an aggressive buy zone, given that there is no clear buy zone, but it has cleared the downward trend line.
It has cleared support, but it is under the 200-day moving average.
Until we can see a definable pattern to declare the buy zone, we are going to use the 200-day as the start of the buy zone.
The buy zone starts at around $2,700.
To summarize, Ethereum has had a good move.
It jumped up above the 50-day moving average, the downward trend line, and the most recent support slash resistance line.
Right now, it is in an aggressive buy zone.
We have declared the 200-day moving average as the start of the buy zone.
XRP
XRP, like the other ones, got up above the downward trend line yesterday on Thursday.
Today, it has followed through higher and stayed above the downward trend line.
The price is now in the aggressive buy zone, and the buy zone starts around the middle of the pattern, kind of like a “W” pattern.
So for conservative investors, buying around $3 will be the start of the buy zone.
Given that XRP has stayed above the 200-day moving average and has held the 50-day moving average for several weeks, the aggressive buy zone is not as risky as other aggressive buy zones.
Binance Coin · BNB
BNB broke the downward trend line a few weeks ago.
It has been straddling the 50-day moving average since then.
It has been in the aggressive buy zone for a few weeks also, but on Thursday made a definitive move to get away from the 50-day moving average.
And right now, it is trying to get above the 200-day moving average.
If the price can get above and stay above the 200-day moving average, the aggressive buy zone is less aggressive now and could be suitable for more conservative investors.
Otherwise, the buy zone starts at $705.
Solana · SOL
Solana is trying to get into the aggressive buy zone.
It is right now holding slightly above it.
The buy zone is not too much above it
The buy zone is around $212.
If the price can stay in the aggressive buy zone for a few days or we see a big move up toward the buy zone, then those would be good times to buy.
Dogecoin · DOGE
Doge is trying to get out of the trading range we've identified in past videos.
Right now, it is finding resistance at the top.
If DOGE can break above the trading range at $0.2061, we should see it have a pretty good move up.
Cardano · ADA
Yesterday on Thursday, the price had a big move up and found resistance at the downward trend line.
Today, it is holding above it.
So this marks a significant move away and above the 50-day moving average.
It is currently finding resistance at the 200-day moving average.
Although the price is in the aggressive buy zone as of today, waiting for it to get above the 200-day moving average would give it more strength.
We want to see it clear $0.79 and stay above $0.79.
Otherwise, the buy zone starts at $1.02.
Tron · TRX
Like we've been mentioning for a while, Tron is still in that trading range.
Based on the crypto market moves of yesterday and today, it seems like it is trying to get to the upper half of.
Based on the crypto market moves yesterday and today, it seems that the price is trying to get to the top of that trading range.
The 50-day moving average line is starting and has been curving up for a few weeks, almost a month now.
This is going to give Tron the support it needs to move higher.
So right now, the price is technically in the aggressive buy zone.
I suspect when the price gets into the buy zone, approximately around $0.275, we should see a pretty good move up.
Though there might be some resistance at around $0.30.
Definitely keep an eye on this one.
The longer something moves sideways, the higher the likelihood there's a big move up or a big move down.
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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.
I used turboscribe.ai to transcribe the video and did some editing to create this post.