This week, we take a closer look at Ethereum, Cardano, Ripple, Solana, and Luna.
On Tuesday, Ethereum fell below $4,000 (the level that is acting as resistance at the moment) after being unable to sustain its rally from the previous week. The price made a low and closed the past 7 days in red with a loss of 8%.
The current price action has formed a large descending wedge (in blue) which is a bullish formation as long as the price is able to break above it after the correction is completed. This possibility was also confirmed by the MACD histogram on the daily time frame was making higher lows, indicating that a bullish divergence is taking place as the price moves within the boundaries of the wedge.
Looking ahead, ETH is not likely to leave the wedge any time soon, and if the correction continues, the cryptocurrency could reach $3,300 before a possible breakout. The current support at $3,600 has held up well so far, but the price has been making lower lows and lower highs, indicating a downtrend. If ETH manages to close a daily candle above the wedge, it has a good chance of returning to the upside.
ADA failed to move above $1.5 which is currently acting as resistance after the continuous rally from the $1.2 support level. This latest rejection has resulted in a loss of 8.6% in the past seven days.
The biggest challenge for the ADA is to get back above the trend line that has been in place since March 2020 and lost on December 9. The ADA has attempted to get back above this major trend line on three occasions, but each time it has been rejected – most recently on Tuesday.
ADA is currently in a downtrend and may retest the key support level next week. Its volume shows that interest is high and until the breakout occurs, the price is likely to remain stuck in the $1.5-$1.2 range.
XRP had a difficult week after being rejected by the $1 resistance level. This caused most of the gains made in the previous week to be lost, closing the last seven days in red with a 15.6% loss in price. The current support was found at $0.75 and it should provide a good defense area for buyers.
Because of this drop, the indicators turned bearish as the daily MACD completed a bearish cross today and the RSI dropped below 50 points. With that said, the RSI managed to complete a higher bottom despite the correction. Therefore, the bulls have a good chance of reversing the downtrend soon and making another attempt towards the $1 resistance.
Looking ahead, if XRP manages to halt the downtrend in the coming week, buyers may return to push the price towards the key resistance that has so far proven very difficult.
The SOL rally ended on Tuesday when the market in general turned around. The price broke below the blue rising wedge (which was a bearish formation) and stopped at the $170 support level, thus losing 7.9% in the past 7 days.
The cryptocurrency failed to sustain its rally from the previous week and the $205 resistance proved very difficult on the first try. The price is currently consolidating just above the current support level, and if SOL can stop the downtrend here, it has a good chance of recovering next week.
If buyers return to SOL, it may attempt a new breakout of the key resistance at $205. Until then, its price will likely remain in the $205-$170 range.
After hitting an all-time high last week at just over $100, Luna entered a correction and closed the past seven days in the red 4.9% lower.
Luna’s current support was found at $78 and the price is likely to retest this area before any hope of a renewed uptrend. The $100 resistance proved very difficult to break as sellers took profits at this key psychological level.
Looking ahead, Luna indicators on the daily time frame have turned bearish after rejection at the major resistance. For this reason, the price correction may take some time to complete, despite the bullish fundamentals underlying the Terra-Luna ecosystem.
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Cryptocurrency charts by TradingView.