- Cryptocurrency markets as a whole are facing new selling pressure in February thanks to the Fed’s comments.
- However, some cryptocurrencies are trending sideways and could be preparing for a breakout.
- In this article, we look at cryptocurrencies other than Bitcoin that are likely to do well in the coming weeks.
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Although the crypto market showed signs of recovery last week, February started in the negative.
Some cryptocurrencies have continued to fall, partly due to comments made by yesterday, leading to an overall pessimistic outlook.
US economic data is scheduled to be released tomorrow, adding an element of uncertainty and potentially increasing market volatility.
The Fed carefully considers labor market conditions in its interest rate decisions, so if employment data suggests the labor market is easing, risk market pressures could be temporarily eased.
External factors have had a major impact on the crypto market this week, with consolidation following the introduction of ETFs.
Meanwhile, the top 10 altcoins are consolidating. After fending off selling pressure over the past few weeks, these cryptocurrencies could be preparing for a breakout.
1. Ethereum: Can the bulls break out above $2,365?
After testing $2,200 last week in a correction that started after an overall uptrend that lasted three months, it found support again at this point.
The $2,200 level, which formed the end line of the band’s movement during the December consolidation process, will continue to hold as solid support for Ethereum.
This level is also in line with the 3-month EMA and remains a price range that needs to be protected to prevent an extended correction.
In the upper region, we found the $2,365 level to be the closest resistance price this week. If Ethereum can find support at current levels for the remainder of this week, a daily close above $2,365 will be important.
A potential breakout could technically trigger a rapid rise in ETH. The Stoch RSI above the resistance price reflects bullish potential, so ETH price will once again start moving beyond the short-term uptrend.
The potential positive outlook could push ETH past its January peak in the $2,600 region and quickly move towards $2,800.
In the lower region, we see that if the daily close breaks above $2,200, ETH could now come under selling pressure and retreat towards the $1,950 to $2,080 range.
2. Binance Coin Eyes breakout after support test
After testing $330 since the beginning of the year, it started moving in a descending channel and entered a correction phase.
Having tested the upper band of the channel once earlier this week, BNB is looking for support at the midline today after being rejected at this point.
The average level of $295 will remain as the first support point for BNB.
If the reaction strengthens from here, the $300 level will appear as psychological resistance, and in particular, a solid break above the $310-$320 range will be effective for the uptrend to continue.
A potential upside breakout would see $350 back on the table, with momentum likely to continue towards the $400 area thereafter.
In the lower area, there could be a retracement towards $275 to $280, corresponding to the lower band of the channel below $295.
3. Ripple: Is this the bottom for XRP?Focus on key resistances for reversal
Among the cryptocurrencies with high market capitalization, it has become the virtual currency that has experienced the deepest correction phase.
This week, after losing the last resistance level at $0.52, it fell below $0.5, regaining most of the gains from the overall uptrend that started in October.
According to the current outlook, the nearest support point for XRP is currently $0.47. If this support zone is lost, XRP could fall to $0.41.
For a possible reversal, the 0.51-0.52 region will continue as the first resistance region. In case of a weekly close above this region, a rally towards the $0.56-$0.59 level will be key.
This level will be an important area for XRP to continue its upward trend.
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Disclaimer: This article is written for informational purposes only. This does not constitute an investment solicitation, offer, advice or recommendation and is not intended to encourage the purchase of any assets in any way. We would like to remind you that investment decisions and associated risks are borne by investors, as any type of asset is evaluated from multiple perspectives and is highly risky.