Crypto Price Analysis 8-30 BTC, ETH, SOL, DOGE, XRP, DOT, AKT

After analyzing the current market trends, it appears that XRP, Polkadot (DOT), and Akash Network (AKT) are all experiencing some volatility as we speak. As someone who has been following the crypto market for quite some time now, I’ve learned to expect the unexpected.

Bitcoin (BTC) has been unable to maintain its momentum above the $60,000 mark following a recovery effort, with the price slipping back down after reaching $61,120 on Thursday. Currently, BTC is hovering slightly above $59,000 as sellers aim to drive the price even lower.

In the last 24 hours, most major cryptocurrencies have experienced minor decreases. Bitcoin (BTC) dipped by 0.60%, Ethereum (ETH) fell by 0.62%, Solana (SOL) dropped by almost 4%, XRP declined nearly 2%. Toncoin (TON) saw a drop of 2.14%, and even Dogecoin (DOGE) experienced a slight decrease. Conversely, AI-oriented tokens such as FET, RNDR, and TAO have seen drops ranging from 7% to 10% due to Nvidia’s downturn following its post-earnings report.

A Crucial Week For Crypto Coming Up

Next week holds great importance for the crypto market, given the impending interest rate reduction that could potentially rejuvenate crypto markets seeking capital infusions. An influx of capital might lead to substantial price surges across various significant cryptocurrencies. Consequently, investors are optimistic about a bull run in September, even though it’s typically a quiet period for major cryptos like Bitcoin.

Crypto Market Has Evolved: Canaccord Report

According to Canaccord’s recent analysis, the crypto market has experienced substantial development throughout the past year following its recovery from the failure of FTX exchange and resuming growth. At present, the total value of all cryptocurrencies is over $2 trillion. The downfall of FTX occurred after it filed for Chapter 11 bankruptcy protection, which triggered a prolonged period of cold weather and a downturn in the crypto market. This event also set off a chain reaction, causing numerous other crypto businesses to collapse as well. In its report, Canaccord noted that the crypto market has since bounced back.

Over the past year, it seems that the digital asset sector has shifted from a consolidation and recovery period following FTX, towards an era emphasizing growth and expanding its business models and total potential markets (TAM).

The report also stated that the launch of spot Bitcoin and Ethereum ETFs has facilitated broader institutional adoption of digital assets and that portfolio allocations will continue to increase.

“Once both Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) were given the green light, we’ve witnessed a surge in institutional interest in digital currencies. We anticipate that this trend will persist, with more portfolio investments flowing into these assets.”

Over-Optimistic BTC Traders In The Red

1. Following its brief spike to $65,000, Bitcoin (BTC) has experienced a sharp drop due to concerns about a potential U.S. recession and market overoptimism. Although recession fears have diminished, BTC has struggled to stay above $60,000, as sellers continue to push the price downward. Christian Mueller-Glissmann from Goldman Sachs advised investors to view the August 5 market crash as a warning sign and pointed out that markets are once again grappling with an issue familiar from a month ago: excessive optimism despite conflicting economic data.

In early August, data from TradingView shows that Bitcoin’s annualized volatility spiked above 65%, marking a substantial increase compared to the fluctuation range of 24% to 52% in the preceding two months. It’s worth noting that at its peak in mid-August, the S&P 500 index volatility reached 27%, which was the highest since December 2022. Despite this, crypto traders appeared undeterred and overly optimistic, leaning heavily on their leveraged positions.

In simpler terms, the cost for buying Bitcoin futures contracts (a way of predicting Bitcoin’s future price) briefly dropped below its usual level in October 2023, indicating a temporary decrease in investor confidence. However, as the Bitcoin price stabilized and more investors became optimistic about its growth, the demand for these bullish bets increased, pushing the indicator above 6%. This positive shift is reflected in a 4% decrease in the total number of open Bitcoin futures contracts since August 26, as observed by CoinGlass.

Bitcoin (BTC) Price Analysis

As a researcher, I’ve observed that Bitcoin (BTC) has been struggling this week following another unsuccessful attempt to surpass the $60,000 mark. Reaching a daily high of $61,234, the price was swiftly pulled back below $60,000 due to increased selling activity as demand waned at higher levels. Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, believes that Bitcoin is still reeling from its post-high hangover and hasn’t been able to meet expectations since hitting its record high in March. However, Mr. McGlone points to another indicator suggesting a more profound underlying weakness within the system.

McGlone pointed out that as of now, Bitcoin’s value relative to the U.S. Dollar (BTC/USD) is approximately 11 times greater than that of the S&P 500, which currently stands near its record highs. McGlone also mentioned that in the year 2020, Bitcoin surpassed the S&P 500, reaching a multiple of around 15 times its value.

As a crypto investor, I’ve noticed that the current ratio of Bitcoin to S&P 500 is approximately 11 times. In the first quarter of 2020, this ratio peaked at a staggering 15 times, and this year’s highest point was 14 times. This could indicate a post-bubble hangover, a potential swing back towards more historical norms such as around 7 times Bitcoin to S&P 500 (Bitcoin/SPX). The biggest crypto pump in history and the past launches of US ETFs might be contributing factors to this anticipated shift.

Looking at the Bitcoin (BTC) price trend, it’s clear that BTC has faced challenges in staying above $60,000 during August. Despite surpassing $64,000 on Friday, the momentum slowed over the weekend due to substantial resistance, preventing buyers from pushing the price higher. Consequently, BTC dipped into the negative territory on Monday, decreasing by 1.85% and slipping back below its 200-day Simple Moving Average (SMA), settling at approximately 462,903. The downward trend continued on Tuesday, with a drop of 5.40%, causing the price to fall below both the 20-day and 50-day SMAs. Additionally, BTC lost the $60,000 level on Tuesday, ending the day at around $59,506.

On Wednesday, some sellers tried pushing Bitcoin (BTC) down towards $58,000, causing it to dip to $57,922. However, robust underlying demand helped BTC bounce back and close at $59,082, recording a minor decrease of 0.71%. Buyers made an effort to initiate a rebound on Thursday, momentarily lifting Bitcoin to $61,234. Yet, as momentum weakened, the price fell below $60,000 and ended the day at $59,438, registering a slight increase of 0.60%. In the current trading session, sellers are attempting to push Bitcoin’s value towards the $58,000 support level, but with mixed results so far.

If vendors surpass this point, Bitcoin might fall to around $55,000, where it could potentially find a balance. In the meantime, purchasers will strive to retake control and try pushing the price back up towards $60,000.

Ethereum (ETH) Price Analysis

Currently, Ethereum (ETH) is finding it challenging to hold above $2,500, as buyers have yet to significantly impact the price movement. ETH has been unsuccessful in reclaiming the $2,850 support level, which has now become a resistance point for sellers. Since then, ETH has been moving laterally, struggling to stay above $2,700. For the majority of the week, Ethereum has experienced a downward trend, starting with a minor decrease on Sunday. The selling pressure increased on Monday, causing the price to drop by 2.42% to $2,682, dipping below $2,700 once more. With market sell-offs occurring late on Tuesday, ETH experienced a significant decline of 8.34%, dropping below its 20-day Simple Moving Average (SMA) and testing the $2,400 support level before finally stabilizing at $2,458.

Due to robust underlying market activity, Ethereum (ETH) experienced a 3% rise on Wednesday, reaching $2,529. But since Thursday, it hasn’t managed to gain any ground after an unsuccessful attempt at pushing towards $2,600 that was met with selling pressure. As a result, its increase has been minimal. Currently, ETH is trading at $2,533, with both buyers and sellers competing for dominance. If buyers regain control, they might try to push Ethereum up to $2,600 again, but that seems uncertain given the decline in upper-level demand. If sellers maintain their hold, ETH could fall back to its support level, which buyers are expected to protect.

Solana (SOL) Price Analysis

Solana’s (SOL) value is on a downtrend, mirroring struggles in the broader altcoin market. Previously finding it challenging to surpass the $150 mark, SOL has now dipped beneath $140, consistent with indications suggesting a potential fall towards $130. For the entire week, Solana’s price has been on a downward spiral, starting with a 1.05% decline on Monday, although it maintained its position above the 50-day Simple Moving Average (SMA) and closed at $157. The negative sentiment surrounding SOL strengthened on Tuesday, causing it to plummet by 6.55%, falling below multiple key moving averages, including the 20, 50, and 200-day SMAs. This decline also pushed SOL below $150, with it ending at $146 for Tuesday.

On Wednesday, sellers tried to push SOL down towards $140 but failed to maintain it there, causing a decrease of about 1.99%. Despite this, SOL continued to trend negatively on Thursday, reaching a low of $140 again. However, the sellers were close to breaking the $140 mark. This barrier was eventually broken during the day’s trading as SOL fell to $139. If the negative trend continues for SOL, it might slide down to $130 or even lower, suggesting a potential bearish phase for this altcoin. The Moving Average Convergence Divergence (MACD) has shown a shift towards bearishness, meaning that SOL could continue falling unless a significant event causes bullish activity.

Dogecoin (DOGE) Price Analysis

Since Tuesday, Dogecoin (DOGE) has been moving horizontally without much direction from either buyers or sellers dominating the market. After reaching $0.112 on Friday, it started to decline, failing to surpass its 50-day Simple Moving Average and dropping down to $0.109 by Sunday. The new week began with DOGE continuing its descent, recording a drop of nearly 4% to reach $0.105. On Tuesday, it dropped further by 5.99%, falling below the 20-day SMA and losing the vital $0.100 support level as sellers pulled the price down to $0.998. However, at lower levels, buyers regained some control, causing a slight rebound on Wednesday that ended with DOGE settling at $0.995.

On Wednesday, the widely recognized meme currency regained $0.100 following a 0.90% surge. In the current trading session, Dogecoin (DOGE) is experiencing a minor uptick as investors aim to maintain its position above $0.100. If this trend continues, there might be an effort to surpass the 20-day Simple Moving Average (SMA) at $0.110. Conversely, if sellers regain control, they could potentially drive DOGE below $0.100 again, which could lead to a drop towards $0.095 or even $0.090.

Ripple (XRP) Price Analysis

This week, Ripple (XRP) has shown a significant downward trend, dipping to its support level at $0.55 before recovering. In the last 24 hours, it has dropped by almost 2%, and over the past week, it has decreased by more than 6%. The cryptocurrency found itself in the red on Sunday when buyers were unable to push prices above $0.65. This caused a 2.04% drop to $0.60. On Monday, XRP continued its bearish trend from the start of the week with a 2.18% decrease to $0.58. On Tuesday, sellers pushed XRP below its 20 and 50-day Simple Moving Averages (SMAs) and hit a low for the day at $0.55. However, buyers managed to prevent further drops, closing the day at $0.56.

On Wednesday, buyers tried to initiate a rebound, propelling XRP to its peak of $0.58. Yet, as sellers aggressively guarded the moving averages, the momentum waned, and XRP dipped back under these averages, ending at $0.56 with minimal growth. Sellers regained dominance on Thursday, causing XRP to decline by 1.35%. In the current trading session, buyers and sellers are in a stalemate, each vying for control over XRP. The crucial support level for XRP remains at $0.55, and sellers have found it challenging to break through this point. If demand increases and buyers regain strength, XRP could surge above the moving averages. A closing price above these levels might pave the way for a potential rise towards $0.60.

Polkadot (DOT) Price Analysis

After failing to surpass the $5 mark, Polkadot (DOT) has been finding it tough to regain its upward momentum. Since August 16, there had been a gradual rise in the value of DOT from $4.22 to $4.98. However, this increase was halted when buyers faced strong resistance at the $5 level, causing DOT’s price to slide downwards. Consequently, DOT ended the previous week at $4.82. The current week started with a drop in DOT’s value, plunging over 5% and falling below its 20-day Simple Moving Average (SMA), settling at $4.56. Buyers tried to reverse the trend on Tuesday, but due to the overall bearish sentiment, they were not successful. Instead, sellers regained control, causing DOT’s price to decrease by nearly 4% to $4.38.

On Wednesday, DOT faced a test of its $4.20 support level following a 2.74% drop to close at $4.26. Strong interest from buyers on this level led them to try and recover on Thursday, propelling DOT to a daily high of $4.40. However, as demand waned at higher levels, DOT once again dipped into the negative, recording a slight decrease to end the day at $4.25. Now, with investors stepping in at lower points, DOT is currently up by 1.65%, as another recovery attempt is underway. But will this effort be successful?

If purchasers successfully boost DOT‘s price beyond $4.50, it might surge towards $5. On the other hand, sellers aim to regain control and pull DOT down below $4.20. Yet, bulls are anticipated to stand their ground at this level and stop any significant decline.

Akash Network (AKT) Price Analysis

AI-backed tokens like Akash Network (AKT) started off the week with significant optimism, fueled by the anticipated strong earnings from Nvidia. This is evident in the price chart, where AKT began the week with a 8.36% jump and peaked at $2.99. Moreover, buyers made a concerted effort to push prices higher, with AKT reaching a high of $3.48. Nevertheless, sellers managed to counter this trend, causing AKT to be denied at the $3 resistance level. As a consequence, AKT experienced a nearly 8% decline on Tuesday, falling to $2.76.

On Wednesday, the price of AKT fell by 4.02%, ending at $2.65. On Thursday, sellers pushed AKT towards a low of $2.48, testing the $2.50 support level. However, due to strong demand at this level, there’s potential for AKT to rise to $2.57 and decline by 2.83%. As we speak, the current session shows buyers in control, with AKT nearly up by 5%, indicating an attempt to retest resistance levels at $3.

2024-08-30 14:15