Daily Pump & Dump | May 31, 2022 Crypto Market Report


Daily Pump and Dump is a weekday update of the cryptocurrency market that provides you with a brief analysis of price action related to Bitcoin, Ethereum and other popular altcoins.

Today’s summary:

  • Bitcoin Recovers $30,000 Over Memorial Day Weekend
  • How Ethereum Could Lose Its Head Against BTC
  • What’s going on with Cardano?

Bitcoin makes Memorial Day a memorable weekend

During the Memorial Day holiday in the US, bulls benefited from thin order books and low volume, which pushed the price of Bitcoin to more than $31,500 at the close. It should be noted that the daily candle closed above the top Bollinger Bands. The bulls should scramble with significant volume over the next 24 hours or risk a pullback to the lower-end of the simple moving average around $29,766.

BTCUSD_2022-05-31_15-46-20

Will bulls follow through? | Source: BTCUSD on TradingView.com

A strong close above $32,000 could lead to a continuation of targets between $34,000 and $38,000. Tonight is also the monthly closing for BTCUSD. A close above $29,000 should keep the cryptocurrency well above support, while a close above $33,000 would be a healthy sign of further recovery ahead.

Related reading | Beyond LUNA: The Crypto Market Oversold Overall Over Black Thursday

Ethereum loses its head (and shoulders) to BTC

The LUNA device disaster Significantly hurt the sentiment of altcoins. The sell-off and the panic associated with it has sent many cryptocurrencies down 80-90% across the board. Ethereum has held up well compared to other altcoins, dropping just 64%. Bitcoin is down 62% in total.

ETHBTC_2022-05-31_15-59-27

Ethereum could head down further against BTC | Source: ETHBTC on TradingView.com

The long-term outperformance of the ETHBTC trading pair may soon swing in favor of the top cryptocurrency as BTC consolidates its dominance. It looks like the ETHBTC trading pair is also appearing head and shoulders Pattern at risk of confirmation and further breakdown. The target will be close to the 0.04 level.

Cardano goes up 40% in 48 hours, but why?

Hunting knives is never a recommended strategy, yet traders everywhere are regularly tempted by this high-risk technique. The reason is that there can be a huge bonus to getting it right. Cardano has been significantly oversold, dropping 87% from over $3 to the 30-cent range.

ADAUSD_2022-05-31_16-01-29

Was the R:R too good to pass up? | Source: ADAUSD on TradingView.com

Since the altcoin has taken a particularly hard hit, it is now a solid risk versus a reward setup. Bulls who missed their chance on their way up the last time, could see another 8 if the altcoin revisits the prices set late last year.

Related reading | Hammer Time: The Bullish Signal That Could Save Bitcoin

Although the reward is high, so is the risk. During the 2018 bear market, after falling 90%, ADA collapsed another 78%. On Black Thursday, the ADA hit a dime.

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Featured image from iStockPhoto, Charts from TradingView.com





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