The significant rise of Dogecoin (DOGE) to $ 0.45 saw the market value of the cryptocurrency exceeded $ 54 billion and became the 5th largest cryptocurrency by market value.
This huge market value came as a surprise to many, given that there are no active developers on the project and it is just a meme coin, which is why the current rally brings back memories of over-stocking during the 2017 ICO boom.
Growth like that seen in Dogecoin indicates that many traders are in the fray and want to get rich overnight. The only positive sign is that the obsession hasn’t spread to other coins. If this happens, the cryptocurrency markets are likely to experience a sharp correction that will throw weak hands.
CNBC host Jim Kramer was one of the first celebrities to announce that he has closed half of his Bitcoin (BTC) position. While Cramer’s sale is a one-off event, he warns that not all professional investors who have recently switched to Bitcoin will become HODL participants in the long run.
If institutional investors are quick, it could lead to a larger correction in many cryptocurrencies. Traders should beware of irrational exuberance and avoid trading under the FOMO leadership as it is better to stick to a trading plan and think long term rather than dream of wealth overnight.
Let’s examine the maps of the top 10 cryptocurrencies to identify critical support levels and uncover various bullish and bearish scenarios.
BTC / USDT
The bulls failed to take advantage of the breakout in the upper resistance zone and consolidate it to $ 60,000 to $ 61,825.84 on April 13. Bitcoin price dropped on April 14 after hitting an all-time high of $ 64,849.27 and the bulls are currently trying to change the $ 60,000 support level.
If they succeed, BTC / USDT could make another attempt to resume the trend. A break of $ 64,849.27 could start the next step in the uptrend, which could reach $ 69,540 followed by $ 79,566.
However, a negative RSI deviation suggests a correction is possible. Interestingly, the price reversed its trend as the RSI approached its downtrend.
If the price falls below the 20-day exponential moving average ($ 59,427), this will be the first sign that buyers may lose control. A break below the 50-day moving average ($ 55,814) will reinforce the likelihood of a deeper correction.
The bulls could try to stop the decline near $ 50,460.02, but if this level is broken, the pair could fall to the important support level of $ 43,006.77.
ETH / USDT
ETH expanded its uptrend and hit a permanent high of $ 2,545.80 today. Gains from traders pushed the price down to $ 2,300, but the long tail of daylight hours indicates that bulls continue to buy on the dip.
If the price retraces and the bulls push the price above $ 2,545.8, the ETH / USDT pair could start the next phase of the trend. The next upside target is $ 2,745, followed by the $ 3,000 psychological level.
The 20-day bullish EMA ($ 2,131) and the RSI near the overbought zone indicate that the path to the least resistance is upward. This bullish trend will be ignored if the price falls and falls below the 20-day moving average. Such a move could push the price up to $ 1,925.10.
BNB / USDT
Binance coin (BNB) formed a Doji candlestick pattern on April 14th, followed by an internal candlestick pattern on April 15th. Both of these systems indicate fluctuations between bulls and bears. The downside of the minuses has been resolved today.
However, the marginal upside potential is with the bulls protecting the 38.2% Fibonacci retracement at $ 483.95, as evidenced by the long tail of the candle today. Now the bulls will try to push the BNB / USDT pair above the all-time high of $ 638.56 and resume the bullish trend.
Conversely, a break below $ 483.95 could bring the price back to the 20-day moving average ($ 437). A break below this support would indicate traders are heading for an exit and this could lead to a drop to the $ 348.69 breakout.
XRP / USDT
XRP is currently correcting its sharp rally. The bulls are trying to defend the first support at the 38.2% Fibonacci retracement level of $ 1.48 as shown by the long candlestick tail today.