Crypto Market Analytics March 18th | Dex-Trade
Cryptocurrency Legalization in Ukraine, Bear Dominance and Solana Downtrend: Results of The Trading Week and Expert Forecasts
For almost four weeks now, the biggest war since the WW2 has been going on in Europe. Against this background, the crypto has already managed to become an effective tool, but as usual, everything depends on who it fell into the hands of. So the Ukrainian side, which is forced to defend itself from Russian aggression, uses all the possibilities of digital assets to raise funds in support of the army and civilians, which is generally favorable for the market and contributes to the accumulation of confidence in crypto even among conservative investors. Recall that yesterday, President of Ukraine Volodymyr Zelensky legalized digital assets in the country, in fact, launching new regulatory norms. On the other hand, repeated attempts by Russian officials and individuals blacklisted by the crypto community to circumvent international sanctions imposed on them due to their direct or indirect support of a brutal war in a neighboring country have already been recorded. And these frauds relegate crypto to the category of dubious assets associated with financial crimes. It’s not surprising that in this disposition the cryptocurrency market is in a fever and it’s rather difficult to make any forecasts for the value of assets even in the near future. Therefore, today, as in our previous analytical column, we will focus on market sentiment and their causes, without delving into distant perspectives.
BTC Signals Bullish Initiative and Falls Below $40,000
Just four days ago Bitcoin broke through some strong supports and fell below $38,000 again, which has not happened in a week. However, crypto-gold continued to grow and in a couple of days its value exceeded $41,000. But the selling pressure worked here too, so now experts are not inclined to be overly optimistic about BTC. In particular, crypto analyst Capo believes that the time for coin consolidation is coming to an end, and the bullish buying pump is already starting to falter. According to him, Bitcoin is now transmitting misleading signals called "bull traps", which are usually followed by a protracted fall in the asset's price. In addition, this week the US Federal Reserve announced a 25 basis point interest rate hike, which also sent BTC down $1,000 straight away before it reversed all losses and continued the $41,000 fight.
It is likely that the flagship cryptocurrency will repeatedly try to overcome the $41,000 mark over the weekend, but the start of an active trading process next week is likely to encourage the bears to be more aggressive.
Downtrend Brings Solana Back to 48 Hours Ago
At the beginning of the week, analysts predicted a bullish momentum in Solana (SOL), but with a high probability of the bears seizing the initiative. Then, for almost the entire week, the bulls ruled the coin market, which changed the price dynamics and returned the asset after drops below $80. But it continued until the second half of Friday. Now the bears seem to be showing confidence and may soon take over as the SOL is already trading below $85. Over the past 24 hours, SOL has fallen by almost 2%, the daily trading volume was $2,694,232,350, and the capitalization was $27,374,775,562, which is 4% lower than the day before.
Judging by the analysis of the SOL Bollinger band, its upper limit is at $100, which is the most significant resistance for the coin. The lower border of the band is in contact with the chart at $74, so there likely the most powerful support for SOL. RSI is now showing a value of 39, which indicates a stable value of the cryptocurrency, but its gradual weakening. That is, the asset moves into the oversold zone. However, RSI SOL does not go off scale, so do not panic ahead of time.
A Brief Overview of the Alt Market
Recently, most altcoins have experienced symmetrical price spikes and dumps. But now the influence of the market fever has subsided and ETH began to behave very uncharacteristically: its connection with BTC was cut off and Ethereum, in fact, became the only coin that showed a good growth of 5.77% in 7 days and remained green. BNB also recorded a slight increase, but the daily indicator of its dynamics is negative. Terra (LUNA) has lost over 13% of its price in a week and is now $83, even behind SOL. Well, we wish you peace, a productive weekend and successful start to the next week!
