February & Cryptocurrencies, What about altcoins (BNB, MATIC, SOL)?

Like every week, I review the previous week’s analysis and then explain my vision for the week ahead. However, as I’ve been repeating myself for the past two weeks, this week we’re going to do a slightly different format, highlighting the support and resistance zones of some altcoins!

Disclaimer: This article is not an investment advice or an incentive to invest. It is a strictly informational article. You are solely responsible for the trading and investment decisions you make.

Last week’s debrief

Another week without madness, a slight exit from the bullish range with reintegration… Even with the European and US figures we had this week, the market remained very calm.

Bitcoin - another week of sleep
Bitcoin – another week of sleep

And to avoid repeating myself, I suggest you check out my last two articles for my analysis of the week: the one from two weeks ago and the one from last week. My conclusions remain the same. So let’s move on to the analysis of the resistances and supports of some of the top10 altcoins.

Altcoins Analysis – Support & Resistance

So first, what is a support? These are areas where buyers, who have large amounts to buy, start buying everything that is sold on the market (often by people who think the asset is going to go to 0 and they can buy it back lower). This is what forms the low points.

On the other hand, what is resistance? These are areas where sellers, who have large amounts to sell, start selling everything that is bought on the market (often by people who FOMO). This is what helps form the high points.

BNB – The Binance Token

Binance’s BNB is one of the most resilient tokens in this bearmarket. It is very strong on its supports especially between $200 and $250 as can be seen on the following chart.

BNBUSDT In range Logarithmic scale
BNBUSDT In range Logarithmic scale

What we can see here is that over the long term, we are starting to see a range forming between the support and resistance zones. In this case, we are currently in the middle of the range, in a zone that we will call the “combat zone”. This zone will later act as support if we go above it or as resistance if we stay below it.

SOL – Will the Solana token survive?

Since the FTX case, it has been difficult for the Solana blockchain to recover. Many have been waiting for it to go to the cellar (and have probably shorted it) which has allowed it to go through a bullish phase again since the Bitcoin rally. However, we can see that the resistance took effect immediately.

SOLUSDT closer to the floor than the ceiling Logarithmic scale
SOLUSDT closer to the floor than the ceiling Logarithmic scale

The support areas are poor. They have been used very little over time, so they are not really strong as we can see on the NBB for example. Nevertheless, if we have a new bearish phase and the $10 area is still a support, it is possible that the bottom is there. Be careful though, because the current selling area (before $30) is VERY strong.

MATIC – Polygon, the darling of P2E (play to earn)

Polygon is becoming THE blockchain used by all game creators aiming to use NFTs. The phenomenon is explained by the low gas costs compared to Ethereum. As we can see, the chart is very bullish for the future.

MATICUSDT Very strong recently Normal scale
MATICUSDT Very strong recently Normal scale

The support and resistance areas are clearly visible on the chart. The support under $0.5 has had the desired effect, but what about the one under $1! It is very powerful with beautiful W’s formed inside.

Be careful, though, the GIGA W is not yet formed, and besides, there are still two big resistant areas above it. However, if you want to buy matic, you can quickly see the buying zones in case of a retracement (certainly guided by Bitcoin!)

Conclusion

A quick zoom on three altcoins for today. I hope this has helped you see a simple method to justify investing in an altcoin if you want to do so. Support zones are the keystone of the bearmarket. Unfortunately, we must not forget that it is the strong bullish recovery of Bitcoin (and only Bitcoin!) that will validate the bottoms on altcoins.

Regarding Bitcoin, as you know, for me, there is still liquidity at $25200 to go. However, if everyone expects to go there, the punishment could come sooner than expected.