Bitcoin, Ether, Major Altcoins – Weekly Market Update May 30, 2022
The total crypto market cap erased $36 billion from its value in the last seven days and now stands at $1.27 trillion. The top 10 coins were all in red for the same time period with Solana (SOL) the worst performer with 12.1 percent of losses. Bitcoin (BTC) is currently trading at $30,605 while ether (ETH) is at 1,895.
Bitcoin closed the trading day on Sunday, May 22 at $30,340 after a two-day long rally. However, this did not help it reverse the general trend and it registered a total of 3.3 percent loss on a weekly basis closing 8 consecutive weeks in red for the first time in its history.
On the daily timeframe chart, the BTC/USDT pair was still caught in the $28,500 – $31,500 range as neither bulls nor bears were able to take over control of the price action.
On Monday, bears pushed the price down to $29,100 completely erasing the gains from the previous two sessions. BTC lost 3.8 percent of its valuation.
We saw it trading even lower – at $28,700 on the next day – May 24, but bulls were quick to react and fully absorbed the losses. The biggest cryptocurrency eventually closed the daily candle in green, at $29,600.
The mid-week session on Wednesday came with a continuation of the improvised reversal to the upside and the coin reached the $30,200 zone in the morning, but then fell back down to $29,500 in the afternoon.
The 24-hour trading volumes were still low, but we could clearly see a bullish divergence with the Relative Strength Index (RSI) on the daily chart.
On Thursday, May 26 Bitcoin made a significant correction of its price, re-testing the horizontal support below $29,000. It hit $28,000 during the intraday trading but then quickly recovered to $29,200.
The selling pressure remained quite high and on Friday BTC fell once again to $28,500 to test the lower boundary of the range.
The weekend of May 28-29 started with a small green candle on the daily chart on Saturday as the mentioned bullish divergence started to kick in proving the biggest cryptocurrency is extremely oversold and a short-term rally is what we will be seeing next.
On Sunday, May 29, the BTC/USDT pair climbed further up to $29,500 on its second day in green.
What we are seeing midday on Monday is a continuation of the improvised reversal to the upside. BTC hit the 21-day EMA near $30,650 which resulted in a 3.5 percent jump for the day.
The Ethereum project token ETH ended the previous trading week at $2,041 and with a 5.1 percent loss after a positive weekend for buyers. However, just like Bitcoin, the ether was still hovering around the horizontal macro support level waiting for something to push it in either direction.
On Monday, May 23 the ETH/USDT pair hit a three-day high at $2,086 early in the session, but then reversed its direction and closed in red at $1,973 fully erasing the gains from the Sunday trading.
The leading altcoin quickly dropped to $1,911 on Tuesday morning but then bounced back closing near the $2,000 mark.
The third day of the workweek came with a relatively calm session with low volatility as the market was expecting the minutes from the last Federal Open Market Committee meeting. The ether itself was lacking the necessary trading volumes to support a strong bullish reversal that can see it break out of the range while bears seemed exhausted. It ended the day at $1,940.
Here we could also see a bullish divergence on the daily timeframe chart.
On Thursday, May 26 the ETH/USDT pair made a significant pullback of more than 7.4 percent to once again test the next support in the $1,700 area.
Nothing changed on Friday as bears pushed the price even lower to test the mentioned horizontal line.
The first day of the weekend was when buyers came to the party. The ETH token started moving in the upward direction fully erasing all losses from the previous day by hitting $1,791.
Then on Sunday, it formed a second consecutive green candle on the daily chart.
The coin is currently trading significantly higher – close to the $1,900 mark.
- Cardano (ADA)
Cardano recently hit its previous cycle’s all-time high. The coin re-visited the zone around $0.38 where it peaked during the 2017/2018 bull run in the huge selloff during the week of May 9. However, it looked like buyers were prepared for such a scenario and re-entered the market opening some long positions to DCA on their positions which pushed the price up to $0.51 or 25 percent higher as of the time of writing this market update.
The ADA/USDT pair closed 8 consecutive weeks in red, but is currently making its way up, trading 7 percent above the weekly candle open price making it the biggest gainer among the Top 10 coins.
What we can expect from here is to attempt to break above the 21-day EMA on the daily chart and create a new higher high by surpassing the $0.60 mark. Potential support at $0.45.
Altcoin of the week
Our Altcoin of the week is Evmos (EVMOS). Evmos is a Proof of stake (PoS) application-specific blockchain built on top of the Cosmos SDK. It is fully interoperable with the Ethereum mainnet and EVM-compatible environments meaning developers can move all their preferred features and code from an Ethereum EVM chain to Cosmos thus enjoying benefits from the two blockchain ecosystems at once.
It is something similar to what Moonbeam has built on Polkadot.
The native token of the Evmos chain is EVMOS. It added 103 percent to its value for the last seven days jumping back up from its all-time low at $1.19 registered on May 20.
The coin is currently trading at $3.24, up more than 17 percent for the day. It is ranked at #82 on CoinGecko with a total market cap of approximately $683 billion. There are currently $10.3 million funds locked on the Evmos chain thanks to a 546 percent increase in the total value locked for the last 30 days.
Chart from the CoinGecko terminal: