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Crypto Predictive Analysis for the Week of May 22, 2022 – “Polishing the Brass on the Titanic”

by | May 23, 2022 | Cryptocurrency | 0 comments

Over the past few weeks, Bitcoin has lost nearly 36% of its value, currently trading just below the $30,000 level. On May 17th, the crypto “Fear and Greed Index” hit the lowest level since May 17 hit 8/100, the lowest level since the pandemic-induced crash that took place in March 2020. It remains in the “extreme fear” territory, with Bitcoin struggling to stage even a short-lived relief rally. Bitcoin suffered from a bloodbath of unfavorable macro conditions and the implosion of the Terra ecosystem. Two weeks ago, the world’s largest cryptocurrency dropped to $25,401 – the lowest level since December 2020.

Bitcoin Analysis 

On April 22nd, the Bitcoin(BTC) price broke down from a long-coming support trendline, signaling the resumption of the prevailing downtrend. However, the sellers took nearly a week to sustain the price below the $40000 mark. Furthermore, the buyers eventually submitted to the rising selling momentum and took the downtrend to its current lower low of $26,350. The recent sell-off had sliced through several support levels such as $33000 and $30000. However, the BTC price has been wobbling around the $30000 mark for the past two weeks, projecting the formation of a symmetrical triangle pattern. As a result, the coin price is gradually narrowing within the triangle suggesting an upcoming breakout. Conversely, a daily candle closing below $26000 would extend the correction rally to the next significant support at $27600.

Technical indicator-

While the Bitcoin price presents a sideways rally, the RSI slope trending higher indicates a rise in the underline bullishness. Therefore, A bullish divergence promotes an upside breakout from the triangle pattern. The wide gap between the bearishly aligned VI+ and V- gets narrower, suggesting the buyers attempt to wrest control from sellers. A potential bullish crossover would give additional confirmation to long traders.

  • Resistance level- $35000, and $40000
  • Support level- $28600 and $267000

Ethereum Analysis 

The recent price action pulled down the second-largest cryptocurrency to the coveted $2,000 mark. It briefly fell below the mentioned level but swiftly recovered. However, the ETH buyers keep on struggling to carry forward gains as they face upside pressure. ETH price attempted a bounce back from the lows of $1,701.04 made in the previous week. ETH recorded gains of 26% in four-session. But, investors should not be overwhelmed by the upside movement as due to the extreme oversold market condition, this bounce back in the price is very much anticipated. The dark clouds for ETH are expected to stay longer. A slip below the day’s low would bring the prevailing trend back in action. On moving downside, the first target could be the psychological $1,700 level. On the other hand, a change in the bullish sentiment might result in a U-turn in the price. A decisive close above $2,100 would see more gains toward $2,250 followed by the horizontal resistance zone at $2,500.

Technical indicators

The RSI (relative strength index) still holds below the average line indicating a warning sign for the buyers. The moving average convergence divergence (MACD) remains depressed with no clear directional bias.

  • Resistance level- $2600and $2800
  • Support levels- $2,000 and $1,700

Altcoin Analysis 

FTM Analysis 

The Fantom(FTM) price has witnessed a steady decline while breaking multiple support levels for the past seven weeks. Since then, the price has closely followed the dynamic resistance and tested the 20 DMA a few times. The FTM price is finally taking a break around the $0.27 support with a significant increase in its trading volume, indicating traders’ interest in the coin. The consolidation phase and trading activity seen in the past week reflect signs of an accumulation zone and a potential breakout using the $0.27 crucial support. A daily candle closing above the descending trendline may drive the price beyond the $1 mark. However, a bullish movement will struggle at the descending trendline and the resistance offered by the 20 DMA.

Technical indicator

The FTM price moving between the Bollinger band indicator’s midline and lower band accentuate strong selling from traders. Moreover, a bullish breakout from the midline would offer the first sign of recovery. The daily RSI slope showcased a significant rise following a bullish divergence. Furthermore, the indicator slope escaped from the oversold region suggests the aggressive selling has stabilized. 

  • Resistance levels are $0.41 and $0.64
  • Support levels- $0.27 and $0.16

Gala Analysis 

The GALA price resumed its downfall, witnessing a sharp drop since 28th March. Since the price has closely followed, the 20 DMA acts as a dynamic resistance while piercing through multiple support levels. Moreover, the GALA price had recently breached the $0.075 support level for a moment before taking support at its current level. Over the past seven weeks, the GALA price tumbled by 72% marking its recent low at $0.0487. The GALA price presently trades at $0.079, which is a crucial support zone considering the same was used as key support back in Sep ‘21 – Nov ‘21. Therefore, buyers can treat this as an excellent opportunity to kickstart a fresh rally as the same support was the initiator of the steep rally experienced in Nov ‘21. Under a strong bullish scenario, the buyers have the potential to breach the dynamic resistance, triggering a potential recovery rally. However, if the price slips below the $0.075 support, the bullish thesis will be invalid.

Technical Indicator

A sideways rally in the daily-RSI slope indicates the buyers are strengthening their grip over the coin concerning the declining price action. This bullish divergence may assist buyers in reclaiming the overhead resistance trendline. However, the 50 DMA and descending trend confluence mount a troublesome hurdle for GALA buyers. Moreover, a bearish alignment among the downsloping DMAs(20, 50, 100, and 200).

  • Resistance levels were $0.124, and $0.181
  • Support levels are are are $0.075, and $0.047

SAND Analysis 

For the first four months of 2022, the Sandbox(SAND) buyers had mounted absolute support at the $2.5 mark. However, the formation of new lower lows reflected the weakening of bullish momentum, which eventually breached this bottom support. The $2.5 fallout support triggered a massive sell-off, and the wide signal of negative sentiment in the crypto market bolstered the downfall to the new lower low of $0.097. Moreover, the post-retest fall registered a 58% loss. On May 13th, the SAND price rebounded from the $1 mark, suggesting a bullish pullback to the overhead resistance. However, with the bitcoin price’s failed attempt to sustain above the $30000 mark, this altcoin price reverted and plans to retest the $1. Thus, if sellers continue to pressurize the coin price, the SAND holder could lose the $1 mark and be exposed to a 40% loss. Alternatively, a bullish breakout from the descending trendline could signal a recovery sign for SAND buyers and drive the coin price 180% high to $the 3.62 mark.

Technical indicator

The Vortex indicator maintains a significant gap between the bearishly aligned VI+ and VI- indicator sustained selling in the market. A strong rise in daily-ADX slope with no weakness indicates steady growth in the bearish momentum.

  • Resistance levels- $1.85 and $2.5
  • Support levels- $1 and $0.58

Conclusion

Galaxy Digital CEO Mike Novogratz recently warned market participants against anticipating a sharp turnaround in market sentiment, claiming that it would take more time for stocks and crypto to bottom out. Novogratz predicted that prominent altcoins could decline another 70% from their respective price peaks. On May 20, OpenSea unveiled Seaport, a brand new Web3 NFT marketplace for trading popular token collections. The new decentralized protocol is not just for OpenSea, but all developers, content creators, and collectors can build on it. Seaport is taking a different approach to the standard model of NFT trading, which involves a platform facilitating a deal between seller and buyer.


A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to blockchain merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of blockchain verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.

In addition, Adam S. Tracy also has a successful track record co-founding blockchain industry ventures, building & leading cross-functional teams, and spearheading diverse corporate transactions. A serial entrepreneur, Adam has successfully started and created exits across a wide swath of markets, including various mobile SaaS ventures, cryptocurrency, peer-to-peer payment systems, and numerous token generation events. Moreover, as a recognized expert in the payments field, Adam Tracy has been a blockchain and digital currency evangelist and influencer since the early days of Bitcoin.

Utilizing his proprietary “Pre-Event Driven™” strategy for decision making, Adam S. Tracy further leverages his over twenty years’ experience to create cost-effective, value-add solutions for each client. A data-driven acolyte, Adam continually refines his strategies based on field studies and data collection. Moreover, Adam Tracy further augments his range of solutions by actively networking with regulators, liquidity providers, legal and compliance experts, deal-flow brokers, investors and management of leading high risk industry ventures.

Adam S. Tracy earned his Bachelor of Science in Computer Applications and Bachelor of Science in Finance from the University of Notre Dame. He subsequently earned his Masters in Business Administration from the DePaul Kellstadt Graduate School of Business, while concurrently earning his Juris Doctorate from the DePaul College of Law. Adam lives outside Los Angeles with his with his wife, son, four dogs, and two cats.

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