A week of recovery for the crypto market, with the two main assets approaching the end of the week in positive territory, ETH adds +16% during the week, while BTC increases +10%.
A week that generates some excitement due to the increase in prices, but still leaves us in a situation of uncertainty, since the rises have not been enough to confirm a change of trend and therefore the support area of early January could become the resistance to beat in order to raise that scenario.
If we surf through the market we can see very bullish tokens during this week, but which pose the same speech mentioned above, if we do not see resistance break, it is likely to continue along the path of the last weeks.
Within this group, we can see Yield Guild Games (YGG), whose price has appreciated +35% during this week, but which was coming from a very pronounced bearish movement since November.
Yield Guild Games is a DAO (Decentralized Autonomous Organization) of the Gaming sector, which has built a community of players and investors who earn money by investing in NFTs, used in metaverses and Blockchain games.
Its growth during this year has been exponential. YGG went on the market last July, after a pre-sale phase. It was listed on different exchanges and its price went from trading at $1.90 in August, to $11.50 on its ATH in November, before starting the bearish movement of the last few months.
If we look at the chart, we can see the evolution of the price in the last 6 months. It is difficult to identify a clear long-term trend, since it is a token that has been trading for just over half a year, but we can see the formation of a bearish wedge in the last 3 months and that begins to show signs of exhaustion in its indicators.
The first of these symptoms can be seen in the bullish divergence shown by the RSI over the past week. We see how the price makes lower lows while the RSI begins to create higher lows. At the same time, the MacD makes a bullish crossover as can be seen in the following image.
During this week we have seen how the evolution of this movement has managed to break out of this bearish guideline, but we cannot consider it as broken until we see highs that manage to break the resistance zones marked in the image. The first one located at $4.25, which is the support that was lost in January. The second one is the one that would confirm the break of the downtrend at $5.42, the last fractal confirmed in the downtrend.
If the price fails to break these resistances, it is likely that the latent indecision in the market will continue, since this is a decisive area for the evolution of the price and the market is still aware of how the imminent rise in rates expected for March by the FOMC. The big question is whether prices have already discounted the news.
I take this opportunity to clarify that nothing described in our articles should be considered as investment advice, we simply present our vision of the market and the tools we use to guide us in our operations.