This week, we take a closer look at Ethereum, Ripple, Solana, Luna, and Avalanche.
Ethereum has regained the $4,000 level and looks set to move higher towards the next major resistance at $4,400. The battle at the $4,000 level was intense, and it took nearly a week for the buyer’s side to win. The price dropped to the previous support level at $3,700 several times, and the outlook on Monday was bleak. But this quickly changed with the return of the market. As such, ETH has closed the past seven days in green with a decent 3.7% price increase.
Indicators have now turned bullish on the daily time frame, particularly the MACD which crossed to the positive side on Wednesday. It seems likely that ETH will continue to rise as it will be presented with the next challenge, the $4,400 resistance.
While the current price action calls for optimism, it is important to remember that the weekly time frame is still bearish, and the current price action could be a relief in the short term. Only if ETH moves beyond the current resistance will it be possible to hope for a test of the all-time high at $4,868.
This week, XRP is finally back to the upside after a 14-day consolidation. The price moved up quickly and broke the $0.89 resistance, which has now turned into support. At the time of this post, XRP was just below the $1 resistance, capping the past seven days with a stellar 20% price increase. The cryptocurrency has also benefited from a good market environment, as discussed above on ETH.
Since $1 is a key psychological level, it is unlikely that it will surpass XRP on its first try. This appears to be the reason for today’s price action being shaken after being rejected at this key level. XRP will need to consolidate and sustain recent gains before attempting another shot at this key level.
The cryptocurrency is losing a bit of momentum at the moment, as evidenced by the MACD chart, which could make a lower high today. However, a pullback would be normal in this context, and an additional test of $1 can be expected at any time.
SOL also had a good week, posting a noticeable 7.6% price increase in the past seven days. After finding support at the $150 level, the price rose and now stands at the $188 support level which acted as resistance in the past.
If SOL can sustain the current rally, the next major resistance will be found at $205. As both the MACD and the RSI have turned bullish on the daily time frame, it is likely that the SOL will reach a higher level next week. However, a break above $200 looks difficult, so it is wise to expect a lot of volatility as the market progresses.
This last move up was also of low volume, so confidence in the current price is lower. Bulls have to step up their game, and their first task is to keep the price above $188. If you succeed there, it becomes a potential $200 valuation for SOL.
Luna broke another record this week by achieving a three-figure valuation of $100. For this reason, it is one of the best performing companies in the market right now, with a whopping 56% increase in seven days.
This price action is due, in part, to the fact that the Terra USD stablecoin will be listed on the Binance exchange on Christmas Day. Adoption of the Terra ecosystem is spreading rapidly, which benefits the price of the Luna. Somewhat ironically given the news of the listing, this week, the Terra Network replaced Binance Smart Chains as the second largest network by total locked value, second only to Ethereum.
The critical $100 level is likely to act as resistance, and Luna has become overextended with the RSI over 75 points on the daily time frame. While the fundamentals are strong for Luna, it is very important to be careful during turbulent price action as it is now. The support level on the current chart is found at $77.
AVAX price entered a very sharp rally since testing the $77 support level and is now at the $121 resistance level, thus ending the week with a superb price increase of 25%. If AVAX can sustain this rally further, a test of the all-time high at $147 is likely.
However, there are some warning signs that this rally may be coming to an end. The first is the lower highs on the MACD (daily time frame) chart. Volume also faded as the price moved higher, and the RSI curved lower. The indicators combined are showing a clear loss of momentum, and AVAX may enter a short correction soon if this does not change.
Looking ahead, AVAX has good support just above $100, and provided the general market remains bullish, AVAX is well positioned to continue to perform.
Binance Free $100 (Exclusive): Use this link to sign up and get $100 for free and 10% off on Binance Futures the first month (Interests).
PrimeXBT Special Offer: Use this link to register and enter the code POTATO50 to get a 25% discount on trading fees.
Disclaimer: The information in CryptoPotato is that of the quoted authors. It does not represent the opinions of CryptoPotato regarding buying, selling or holding any investments. You are advised to do your own research before making any investment decisions. Use of the information provided is at your own risk. See disclaimer for more information.
Cryptocurrency charts by TradingView.