Bitcoin growth and Solana failure: positivity reigns on the crypto market

After a quiet January 2024, Bitcoin began to rise again. Most altcoins followed suit. The black sheep has become the Monero coin, access to which will be complicated in the near future.

Bitcoin

The first cryptocurrency increased in price by more than 9% from February 2 to February 9, 2024. The coin again crossed the $47,000 mark, which has not happened since January 11. This became possible due to the fact that five out of seven trading sessions ended in positive territory.

Source: tradingview.com

What caused this dynamic? Opinions vary. One of the reasons could be an increase in the volume of trading in shares of spot Bitcoin ETFs. On February 7, 2024, it reached the $1 billion mark, according to Bloomberg analyst James Seyffart.

The head of the research department of the analytical platform QryptoQuant, Julio Moreno, believes: prices have found the bottom, sales have been depleted, and the profit unrealized by short-term holders has become zero. A movement followed. The expert believes that, on the other hand, large players (whales) have continued to purchase since the beginning of 2024, and their accumulation of 3.9 million bitcoins is the highest since November 2022.

According to trader Rekt Capital, the main culprit for Bitcoin’s growth was the upcoming halving. According to a crypto investor, the price of BTC is going through five stages due to the reduction in rewards for miners. Three of them immediately precede the halving, and two come after. Now, according to Rekt Capital, the so-called Pre-Halving rally is coming.

From a technical analysis point of view, Bitcoin is in a bullish trend. The price has again broken through the 50-day moving average (indicated in blue), and the RSI indicator is again above 50 and continues to rise. The next target for BTC should be the resistance level – $49,048. Support is the previous resistance – $44,729.

Source: tradingview.com

The Fear and Greed Index rose six points from last week to 72.. This still shows greed prevailing over fear.

Ethereum

Ether increased by over 8% for the period from February 2 to February 9, 2024. The second largest cryptocurrency by capitalization reached its maximum since January 18. The growth was progressive: never during the week did the price change by more than 3.2%.

Source: tradingview.com

Probably the main news of the past week was the announcement of the implementation date for the Dencum update on the main network.. The event is scheduled for March 13. This became possible after Dencum was successfully finalized on the Holesky test network on February 7, 2024. The last stage of testing of an important update has been completed. Previously, Dencum was successfully deployed on the Goerli and Sepolia test networks on January 17 and January 30, respectively.

Interestingly enough, a quarter of the total supply of ether — over 30 million tokens — is now staked. This information was provided by the Lido staking platform. These data were later confirmed by the analytical platforms Nansen and Dune Analytics.

Technically, Ethereum, like Bitcoin, looks bullish. The price again exceeded the 50-day moving average (in blue), as well as the resistance level of $2,447.2, which has now become support. At the same time, the price increase is accompanied by a decrease in volatility, which has been observed since mid-January 2024. This is evidenced by a fall in the ATR indicator. The new resistance level is the 2024 high of $2,717.5.

Source: tradingview.com

Solana

The long-suffering Solana gained 5.5% over the past week. The price was able to strengthen above the important psychological mark of $100. It is worth noting that at the low of the week, SOL coin was much lower and was trading around $93.

Source: tradingview.com

The main event in Solana was the failure on February 6th. For almost a year, starting on February 25, 2023, the platform’s operation was free of trouble. And finally it happened. The reason for the failure and work stoppage for almost five hours was a problem with the cluster. The developers released a patch, and network operation was restored.

Source: solana.com

Oddly enough, the problems in the Solana system had absolutely no impact on investor sentiment. Even on February 6, the price of the SOL token increased by 1.32%. And in general, starting from February 5, the coin showed five sessions of growth. In general, the situation for the bulls is relatively positive. Indicator signals add confidence: RSI growth above 50 and price rise above the 50-day moving average (indicated in blue). However, globally the coin is rather sideways, and has now approached the resistance level around $106. If we can overcome it, growth will continue. The support level is $93.17.

Source: tradingview.com

Monero

The price of Monero fell from February 2 to February 9, 2024 by more than 28%. At the same time, at the moment of trading on Tuesday, February 6, the fall reached over 40%, and the price dropped below $100.

Source: tradingview.com

The main reason for the sales was the news about the delisting of the XRM coin from the largest cryptocurrency exchange Binance. However, a little later it became known that this would not happen immediately, but only on February 20, 2024. You will be able to withdraw Monero from your accounts until May 20, and convert it into stablecoins until May 21.

Binance's XRM Delisting Initiative Isn't That New. American crypto exchange Kraken banned coin trading for UK residents back in 2021. Huobi stopped trading Monero in September 2022 and OKX in December 2023. At the same time, Monero developers said that the project will never compromise on privacy issues. They advised using decentralized exchange (DEX) services.

Of course, after the formation of such a black swan, the coin is technically in bearish territory. The price immediately dropped below the 50-day (indicated in blue) and 200-day (indicated in yellow) moving averages, which are close to forming a “death cross” pattern.. Current support and resistance levels: $99.34 and $134.85, respectively.

Source: tradingview.com

Chainlink

The Chainlink cryptocurrency increased in price by almost 3% from February 2 to February 9, 2024. The coin continues its ascent since the beginning of the year. At the auction on February 5, Chainlink came close to $20 for the first time in two years.. However, after that the price corrected slightly to around $18.3.

Source: tradingview.com

Recent successes are explained by two factors.

First, there is the growing popularity of decentralized oracle networks that provide critical information on smart contracts for implementing applications (dAaps). Chainlink is considered the leader in this area.

Secondly, recently there has been a serious accumulation of LINK tokens among holders. The Lookonchain platform recorded the withdrawal of Chainlink from the Binance exchange to 47 new wallets in a volume of over $42 million on February 5-6. This shows investor confidence in the coin.

From a technical analysis perspective, Chainlink investors are dominated by bulls. The cryptocurrency continues its strong growth, which is confirmed by indicators: the price is above both the 50-day (indicated in blue) and 200-day (indicated in yellow) moving averages. The nearest resistance level is around $20, the support level is the 2023 high of $17.66.

Source: tradingview.com

Conclusion

Thus, most cryptocurrencies are in an upward trend. The exception is Monero, which is set to be delisted from Binance.. Even the first network failure in almost a year did not hinder Solana’s rise.

This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.