Ethereum ($ETH), Binance Coin ($BNB), and Solana ($SOL) ready to bounce strongly
With the whole crypto market on tenterhooks, and the U.S. non-farm payroll data expected later on Friday, sentiment is still decidedly bearish. That said, isnt it at times like these that bottoms occur? Ethereum ($ETH), Binance Coin ($BNB), and Solana ($SOL), are the major cryptocurrencies ready to take advantage of a reverse back to the upside.
Time to go against market sentiment?
Bitcoin ($BTC) is right now struggling to stay above its last-ditch support at around $56,000. If the king of the cryptocurrencies falls through here, it is liable to continue falling until it reaches the next horizontal support at $51,000.
Things are looking bad, and many investors and traders, to say nothing of some of the institutions, are looking to sell and come back when things are looking up again.
However, its precisely at times like this that the successful investors look to do the opposite of the market. It could be said that arguably the best time to buy is when it just feels ridiculous to go against the rest of the herd.
Of course, the asset you are buying has to remain fundamentally sound, and if you are a long term investor, if it should fall further, this should also be looked on as another opportunity to add to the position.
$ETH finds strong horizontal support
Source: TradingView
Ethereum is the big dog crypto outside of Bitcoin. $ETH has fallen as much as 48% in this ongoing downtrend. However, the price recently wicked down to very strong horizontal support at $2,300. If there is a bounce to come from Bitcoin, then the number two cryptocurrency by market capitalization could also be expected to bounce from here.
If things did become really problematic, from an economic perspective, the $ETH price could even fall down to the major support at $1,900. This is however the bull market support level for $ETH, and this would certainly need to hold.
$BNB primed for a bounce
Source: TradingView
Binance Coin ($BNB) is at its own very strong horizontal support level. This level acted as major support back in the last bull market of 2021/2022, and is doing the same this time around. In fact, a wick down as low as $400 was bought back up strongly in early August.
Building a position here is potentially a good idea, if one still believes that the crypto market will rebound. If the worst happened, the price could fall all the way down to the bull market horizontal support at $347.
The Stochastic RSI looks to be well placed very near the bottom. A cross up by both indicator lines above the 20 level would signal renewed price momentum to the upside.
$SOL bottoms in trading range
Source: TradingView
The $SOL price is in a trading range that it is currently at the bottom of. In addition, there is a big resistance just above, at $138. The price will certainly need to overcome this as a first step towards getting back to the top of the range.
A series of higher lows in the weekly Stochastic RSI could perhaps augur a cross up in this indicator past the 20 level, which it is currently just below.
Over to Bitcoin
A move higher, for all three of the aforementioned cryptocurrencies, will certainly depend on Bitcoin being able to reverse its own downtrend. That said, all three are at great support levels for a bounce to happen. Over to Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
