This week the crypto market leaves us with a bearish movement, but remains in the range of the previous week as we can see in the Total Capitalization chart and continues to respect the previous low that generated the rebound from the bottom of the bearish channel that has been tracing since November 2021.
The same movement is reflected in the $BTC chart with 5 consecutive red daily candlesticks from the $21.7k micro resistance zone, but failing to break the support zone, as seen in the 1h chart.
On the other hand, BTC dominance started the week with a bullish move, but the 44% zone acted as resistance and left a similar scenario as last week, with retest to broken resistance.
Despite this situation of low fluctuation in the largest capitalization assets we have seen some tokens making bullish moves, following sharp drops in previous weeks as is the case of $STRAX. The Stratis token that managed to double its price this week, going from $0.45 to over $1 in just two days.
Stratis is a blockchain platform that offers several products and services for businesses, including the launch of private sidechains, node execution, smart contract development and deployment, an initial coin offering platform and a proof-of-identity application. The company also offers cryptocurrency wallets and blockchain consulting services.
Stratis operates its own blockchain powered by its native token, STRAX, which is used to buy and trade services such as smart contract execution, sidechain payment and staking.
Despite the upside move recorded this week, $STRAX continues to maintain a long-term downtrend. Since touching its ATH in May 2021 with an inverse “V-Turn” move, it has been leaving declining highs and lows from the downtrend we see in the chart.
In the graph we can see that the upward momentum has generated a visual break in the trend line, which had already been falsified on different occasions. Although this is the first time that it manages to close a candle above the line, we cannot be too optimistic, since this trend will continue in the market as long as there is no new high that exceeds the previous one, set in the area of $1.50/$1.65.
On the other hand we see how the 2021 support located in the area of $1/$1.20, (where the 200-day moving average is also located) has acted as resistance during this week, generating several consecutive rejections as can be seen in the 4h graph.
This leaves a short-term range between $1.20 and $0.70, which may be decisive for the evolution of its price. If we see a consolidation in this area with new highs and lows in micro-trend, it is likely that the price will test the next resistance at $1.50. If this co-consolidation occurs with falling highs and lows, we will have to be very attentive to the strength exerted by the supports at $0.70 and the low at $0.40, although given the current economic situation these supports could be lost in search of new lows.
Finally, remember that nothing in our articles can be considered as investment advice, everyone must do their own analysis and develop their own trading strategy. From the Belobaba Crypto Fund team we only show our analysis and investment tools and how they help us in our operations when making decisions.