This week, we take a closer look at Ethereum, Cardano, Ripple, Solana, and Luna.
On Tuesday, Ethereum fell below $ 4,000 (the level acting as resistance right now) after it failed to maintain its rally from the previous week. Price hit a low and closed the last seven days in the red with an 8% loss.
The current price action has formed a large descending wedge (in blue) which is a bullish formation as long as the price can manage to break through it once the correction is complete. This possibility is also confirmed by the MACD histogram which over the daily period hit higher lows suggesting that a bullish divergence is materializing as price moves within the limits of the coin.
Looking ahead, ETH is unlikely to leave the corner anytime soon and if the correction continues, the cryptocurrency could even hit $ 3,300 before a possible breakout. The current support at $ 3,600 has held up well so far, but the price has hit lows and highs, indicating a downtrend. If ETH can close a daily candle above the corner, then there is a good chance that it will reverse the uptrend.
The ADA did not break above $ 1.5, which is currently acting as resistance after a sustained rally from the $ 1.2 support level. This most recent rejection resulted in an 8.6% loss over the past seven days.
The biggest challenge for ADA is getting back above the trendline that has been held since March 2020 and was lost on December 9th. ADA has attempted to break above this key trendline three times, but each time it has been rejected – most recently on Tuesday.
ADA is currently in a downtrend and may retest the key support level over the coming week. Its volume shows interest is high and until a breakout occurs the price is likely to stay in a range between $ 1.5 and $ 1.2.
XRP had a tough week after being rejected by the $ 1 resistance level. This caused him to lose most of the gains made the week before, closing the last seven days in red with a 15.6% price loss. Current support sits at $ 0.75 and should provide a good area of defense for buyers.
Due to the decline, the indicators turned bearish with the daily MACD crossing bearish today and the RSI falling below 50 points. Nonetheless, the RSI managed to complete a lower high despite the correction. Therefore, the bulls have a good chance of reversing the downtrend quickly and making another attempt towards the $ 1 resistance.
Going forward, if XRP can stop the downtrend in the coming week, the buyers could come back to propel the price towards the key resistance which has so far proven to be quite difficult.
SOL’s rally ended on Tuesday when the global market rallied. Price fell below the blue rising wedge (which was a bearish formation) and stopped at the $ 170 support, losing 7.9% in the past seven days.
The cryptocurrency failed to maintain its rally from the previous week and the resistance at $ 205 proved too difficult to break on a first attempt. Price is currently consolidating just above the current support level and if SOL can stop the downtrend here then there is a good chance it will recover next week.
If the buyers get back to SOL, they may attempt a further breakout of the key resistance at $ 205. Until then, its price should stay in a range of between 205 and 170 dollars.
After hitting an all-time high last week at just over $ 100, Luna entered a correction and closed the last seven days in red with a 4.9% drop.
Luna’s current support stands at $ 78 and price is likely to retest this area before any hope of a resumption of the uptrend. The resistance at $ 100 proved too difficult to break as sellers took profit at this key psychological level.
Looking ahead, Luna’s indicators on a daily period turned bearish after the rejection of key resistance. For this reason, the price correction may take some time, despite the bullish fundamentals behind the Terra – Luna ecosystem.
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