What's Next For Crypto? 🥶

What’s up, team.

In today’s post, we discuss our thoughts on where the crypto market might be headed. We’ll breakdown two of our favorite cryptos to trade in Ethereum & XRP.

Let’s dive right in…

Taking a look at the Daily chart, we’ve mapped out a few key levels & zones.

The story for Ethereum will be similar to our previous post on Bitcoin, in terms of where we think the 2nd largest crypto is headed.

If you haven’t heard, the Ethereum network is about to undergo the highly anticipated Shanghai upgrade on April 12th.

Simply put, this upgrade will allow investors (validators of the network) to withdraw their ETH that has been staked since December of 2020 (massive unrealized gains sheesh).

Right now, staked ETH accounts for 1/7th of the entire supply, 16 million tokens valued at over $26 billion.

Will a massive price dump follow?

Without diving too deep into the technicalities of the Shanghai fork, a subsequent dump could likely be in the cards.

Scenario 1: Bull Case

We see a continued push from Bitcoin, driving Ethereum up. We’re currently in an ascending triangle/bull flag, so a breakout to previous highs wouldn’t be surprising.

$2,000 ETH is definitely in the cards (round number pseudoscience).If we can surpass the 2K barrier, consolidate above combined with a bullish Bitcoin. Taking longs right now don’t sound too shabby.

Scenario 2: Bear Case

The bearish scenario would entail a “Buy The Rumor, Sell The News” situation.

Where this push we’ve witnessed in recent days/weeks is due to the hype surrounding the Shanghai Upgrade.

A dip back down the 1400-1500 levels might be a solid spot if you want to look at getting long.

If we see a severe dip from Bitcoin, and end up retouching the 1000-1200 levels. We’d be looking to buy & hold as those prices would be quite appetizing.

Switching gears to XRP…

XRP seems to have slowed down at long-term supply levels kicking in around ~0.58 which is exactly what we want to see for a healthier continuation of this 2023 rally.

The crypto market as a whole has shown a lot of resilience throughout last year so it would not be wise to enter any substantial downside plays in this market, at least until ES and NQ break major demand levels to show a potential new low coming.

With that being said, we rejected the key supply at ~0.58 on 03/29/23 and are yet to retest that level.

It is very possible that this supply level will hold up for a significant amount of time.

However, the weakness in the last 10 days gives us a nice pullback for continuation to the upside off of this ~0.49 demand zone.

Our main watch should be longing for the retest of supply at ~0.58 until demand at ~0.49 breaks.

It is also important to note that volume during the last few days has been very low which explains why we haven't gotten a significant move during this period.

Bullish Case: you want to see this ~0.49 hourly demand hold, volume to start building up here, and strength off this demand to retest hourly supply around ~0.58

Bearish Case: you want to see volume kick in on the downside and break hourly demand at ~0.49, show further weakness, and look for a retest of ~0.49 for further downside

That’s all we got for you in this one.

If you’re wondering where we trade crypto, we use OKX & right now you can unlock up to a $10,000 bonus when signing up using our link.

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See ya in the next one.

-The AlgoBuddy Team