Important crypto updates regarding the prices and news of the cryptocurrencies Avalanche (AVAX), Binance Coin (BNB) and Cosmos (ATOM).
Crypto analysis of Avalanche (AVAX), Binance Coin (BNB) and Cosmos (ATOM)
Below are details and an in-depth analysis of the three cryptocurrencies.
Avalanche (AVAX): is crypto’s recovery sustainable? Comparison with BNB and ATOM
Since 21 February, Avalanche (AVAX) has retraced 27% after facing price rejection at $21.68. The support level of $15.75 has prevented the decline twice.
However, the rebound and potential strong recovery also faced headwinds that bullish traders should consider.
On the three-hour chart, the RSI (Relative Strength Index) has remained below the 50 threshold for the past two weeks. Likewise, the OBV (On Balance Volume) has decreased significantly over the same period, showing that buying pressure has also decreased and the AVAX market structure has weakened.
However, bullish sellers secured support at $15.75 and anticipated a recovery before the block at the descending (white) line level of $16.84.
Therefore, short sellers could seek profits at the $15.75 support if AVAX’s price fails to break through the descending line hurdle ($16.49). A breach below the support may reach $14.89 or $14.36.
Conversely, short-term bullish traders could look for gains at the 23.60% Fib ($17.15) or 38.20% Fib ($18.02) level if AVAX closes above the descending line again.
Bitcoin’s (BTC) surge above $22.60k could accelerate the recovery and push bullish traders to the 50% Fibonacci level ($18.72) as well.
According to Token Terminal, AVAX experienced a spike in daily active users on 3 March. Specifically, active users doubled from about 15 to 30 on Friday, showing that more addresses traded the token, increasing trading volume and buying pressure over the weekend.
It aided recovery after AVAX secured support at $15.75, but rejection on the descending line blocked bullish efforts. In addition, AVAX experienced an increase in revenue due to a spike in daily active users.
Any increase in daily active users during the week ahead could aid recovery and the ability to overcome obstacles. However, a decline in daily active users could push the bears to bring down the price of AVAX.
Binance Coin (BNB): focus on crypto price and DeFi hack
5 March has been neither bullish nor bearish given that prices of some coins are rising while others continue to fall. In particular, Binance Coin (BNB) gained the most yesterday, rising 0.30%.
Despite the slight increase, Binance Coin (BNB) remains more bearish than bullish as the price remains close to support at $281.1. Therefore, selling volume is low, confirming the absence of buyers.
If bulls want to take the initiative, they need to bring the rate back above the vital $300 zone. BNB is trading around $290.5 at the moment. In any case, as is well known, the world’s largest cryptocurrency exchange, Binance, was at the center of a sensational $570 million hack in October last year.
Hackers exploited a bug in the smart contract of the BNB chain and transferred about 2 million tokens into their wallets. As a result of the hack, Binance had to immediately suspend withdrawals and deposits.
One of the largest breaches in the crypto space, the incident raised questions about the security of decentralized finance (DeFi).
Reason why, on 5 March, Binance announced that it will work with law enforcement agencies around the world to combat cryptocurrency-related scams.
The exchange said it has launched the Joint Anti-Scam Campaign, which will include sending alerts, crime prevention messages, and other useful tips whenever users initiate a withdrawal on Binance.
The exchange added that it started this campaign first with Hong Kong and the project has shown good results.
Cosmos (ATOM): a look at the March price predictions
The price of Cosmos (ATOM), on the other hand, shows signs of a complete correction that could lead to a sustained upward movement. In fact, the chart for ATOM shows that the price is trading in a long-term range of $8.90 to $15.60.
The range has been in effect since ATOM broke above $8.90 in early July 2022. Since then, the high and low of the range have been validated a sufficient number of times.
Currently, the price ATOM is very close to the resistance area of $15.60 after it was rejected by it (red icon). Despite the rejection, the weekly RSI is bullish. This has broken out of a descending resistance line and is above 50. Both are considered bullish signals.
If a breakout occurs, the ATOM coin price could rise to the next resistance at an average price of $22. However, if it fails to do so, ATOM price could fall to the support area of $8.60.
In any case, technical analysis from the short-term six-hour chart shows that the ATOM token fell from an ascending support line. Subsequently, it started a relief rally before falling again.
When combining this with the wave count, it is possible that the price completed a five-wave upward movement, which was confirmed by the breakout from the support line. In that case, price is currently in wave C of an ABC correction.
The most likely level for the end of the wave would be between $11.95 and $12. This confluence of supports is created by the 0.5 Fib retracement support level and giving the A:C waves a 1:1 ratio.
Thus, the correction could be complete. In this case, the price of Cosmos should rise above $15.45 and move toward $22. However, since corrections usually end above the 0.618 Fib retracement support level, a closing below $11.12 would jeopardize the bullish count.
Also, a drop below the $8.43 low would permanently invalidate the long bullish term of the Cosmos price prediction and could send the ATOM price toward $5.