Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Solana, Ripple Near Buy Zone as Traders Seek Alternatives for Bitcoin Post-ETF Dip

Published 01/19/2024, 06:10 AM
Updated 09/02/2020, 02:05 AM
  • Cryptocurrency markets, previously anticipating Bitcoin ETF approval, now face selling pressure attributed to factors impacting Bitcoin and the broader crypto market.
  • Persistent outflows from Grayscale's Bitcoin fund and profit-taking by Bitcoin miners contribute to the negative outlook.
  • While Bitcoin has been the center of attention, other altcoins like Solana, Ripple, and Binance Coin could be nearing buy zones.
  • Looking to beat the market in 2024? Let our AI-powered ProPicks do the leg work for you, and never miss another bull market again. Learn More »

Cryptocurrency markets have rallied while awaiting the approval of a Bitcoin ETF for months.

However, tables have turned after the recent sell-off, often attributed to the 'sell the news' narrative, is influenced by developments affecting the overall crypto market and Bitcoin.

Despite net fund inflows into spot Bitcoin ETFs, outflows from Grayscale's Bitcoin fund, now converted into an ETF, continue to exert selling pressure on the market.

Grayscale had to sell nearly half a billion dollars worth of BTC due to redemptions in the GBTC fund, prompting investors to exit in favor of other ETF products with lower annual commission fees.

This ongoing process adds to market anxiety, prolonging the negative outlook. Bitcoin miners, major investors in the market, have also contributed to the decline by selling a significant amount to secure profits.

Although GBTC outflows impact the market, continued interest in the Bitcoin ETF could become a trigger for the crypto market once this selling pressure diminishes. BTC/USD Price Chart

Looking at the latest situation of Bitcoin technically, it can be seen that despite the selling pressure in the short term, the cryptocurrency maintained its critical support towards the end of the week.

While $ 40,000 attempts are likely to be seen in the next 48 hours, Bitcoin's closing the week above $ 41,700 will be an important confirmation that the recent sales have been met.

If this move is supported by a decrease in GBTC redemptions, we may see a reversal of the short-term retracement. This is because the medium and long-term bullish expectations for Bitcoin and cryptocurrency markets remain valid.

To summarize; I continue to follow Bitcoin according to the horizontal band limits that have continued since December, as seen in the chart.

Another important support point in downward movements is the Fib 0.236 value calculated according to the October - December rise with the 3-month EMA value in the range of $ 39,700 - $ 40,000.

A clear daily close below this area risks a continuation of bearish momentum to other support points in the $30,000 area.

The outlook for the cryptocurrency market in January has once again shown us how quickly the mood in the markets can change.

While this is a phenomenon related to the size and concentration of capital in the market, we have often witnessed that declines are used as buying opportunities while medium-term bullish expectations continue.

In this context, let's try to identify support levels that can be considered for cryptocurrencies with high market capitalization other than Bitcoin.

Let's look at the support and resistance levels of Solana, Ripple and Binance Coin among the altcoins with high trading volume in the short-term outlook.

Solana: Buying Opportunity Lurks Near Support

Solana remained quite resilient in the correction process compared to its recent bullish momentum. Currently, buyers are seen moving fast on the support line extending up to $85 (Fib 0.318), while selling pressure is concentrated at the $100 limit.

SOL/USD Price Chart

Short-term EMA values also serve as an important dynamic support for the SOL token, while the cryptocurrency's pricing above the 8 and 21-day EMA values in the $ 96 region today can be followed as an important signal to maintain the positive outlook.

In addition, the daily Stochastic RSI has a signal that will support the rise if it moves above this average.

In the lower region, while pullbacks toward $ 85 can be considered as a buying opportunity, it may be possible to see a retracement of $ 70 in case of a daily opening and closing below this value.

Ripple Could Approach Buying Zone

After losing its support at $0.62 in the first week of the year, XRP extended its correction momentum after failing to regain $0.6 in its recovery efforts.

XRP/USD Price Chart

In the current situation, we can see that XRP, which is below the Fib 0.618 value at $ 0.56, may decline to the range of $ 0.52 - $ 0.53 (Fib 0.786). This level may appear as a new buying zone.

However, in case of a rapid turnaround, a day closing above $ 0.56 can be considered as an early recovery in XRP.

BNB Has Bulllish Momentum In its Tank

BNB received additional support in this process with launchpads organized on the Binance platform.

BNB/USD Price Chart

This process enables the cryptocurrency to make rapid purchases from this point after falling to the $ 290 region. In general, BNB, which started the year with a correction, has an outlook this week that compensates for last week's downward momentum.

In the short-term outlook, the nearest resistance level for BNB stands at $ 317 (Fib 0.786), while an acceleration above this price could trigger a move toward the last peak at $ 350.

The current position of BNB's short-term EMAs and the Stochastic RSI indicator continues to reflect a bullish potential.

In the lower area, the psychological price level at $300 can be followed as the first support point.

While bounces below this value have so far been considered as a buying opportunity toward the $290 levels, $270 may come up as the next support in a possible support breakout.

***

In 2024, let hard decisions become easy with our AI-powered stock-picking tool.

Have you ever found yourself faced with the question: which stock should I buy next?

Luckily, this feeling is long gone for ProPicks users. Using state-of-the-art AI technology, ProPicks provides six market-beating stock-picking strategies, including the flagship "Tech Titans," which outperformed the market by 670% over the last decade.

Join now for up to 50% off on our Pro and Pro+ subscription plans and never miss another bull market by not knowing which stocks to buy!

Claim Your Discount Today!

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

Latest comments

ahqkbabinqunaomn
what can i do?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.