Cryptocurrency market prices have been recovering and rising strongly for several weeks. The locomotive driving this rise is Bitcoin (BTC) and optimism about the SEC’s approval of requests to create ETFs that track the price of Bitcoin in the spot market.
Of course, this approval is not 100% certain. But what happened is that many influential people on Wall Street believe that the regulatory body has no choice but to approve.
If the opposite happens, cryptocurrency market prices will collapse. This is something we cannot predict, but we must be careful.
Now, waiting for the final decision to be issued, the market will enter a period of anticipation. We may witness some decline in prices in the coming period.
As part of a natural correction process. Which can provide us with good trading opportunities.
Below we will take a technical look at 3 cryptocurrencies. We are studying the possibilities of trading on it. Which also has positive incentives.
1. LINK
The peak price rise of LINK in the past 30 days has reached more than 180%. When it reached the level of $24.70, according to data from the CoinMarketCap platform.
The price is now trading above or in the $21-$21.50 resistance area. If we return below it, we will likely see the price fall further towards the $17.50 level.
Where is the 38.2% Fibonacci retracement level? Which could be a good buying area.
Those looking for less risk can wait for the LINK price to fall (if it happens) to lower support levels.
2. Polygon (MATIC)
The price of the Polygon coin (MATIC) has been trading in a downward trend since hitting this year’s high of $1.5 in February. Due to some difficulties faced by the project.
Therefore, caution should be exercised when trading this cryptocurrency. Because its movements are linked to general market sentiment.
In any case, the price of the MATIC coin has risen more than 90% since October 20. It has already declined after peaking at $0.98.
It is now trading at the 38.2% Fibonacci retracement level at $0.80.
You can enter it, or wait for it to fall further toward the $0.70 support level. Again, trade with caution because the fundamentals of the project are not strong.
3. AAVE
The price of AAVE has been fluctuating during the current year, and for most of the past months, it has remained trading in a horizontal range inclined to decline. It is approximately between the levels of $50-$100.
The current bull run began in mid-September. The price of AAVE is moving in an ascending price channel.
The lower border of this channel and the $85 support level represent good buying levels.
Remember, these analyses are related to continued optimism in the cryptocurrency market. Because it is the primary motivation for it, and to a lesser extent LINK.
Therefore, any negative news regarding the topic of Bitcoin ETFs. Or the regulatory situation in the United States will lead to a collapse in prices.
