After yesterday’s enhanced volatility again, where bitcoin tapped a ten-day high above $39,000, the asset has calmed just below that level. Most alternative coins are untypically stable on a daily scale, with ETH standing beneath $2,800 and Polkadot reclaiming $20.
Bitcoin Remains Above $38K
The past several days were quite volatile for the leading digital asset, starting from a near $2,000 drop on January 31st that drove it from above $38,000 to a multi-day low at just over $36,500.
After stalling at that line for a bit, bitcoin went on the offensive during the weekend. As reported on Sunday, the asset reclaimed $37,000 and even tried its hand at $38,000.
It was rejected at first, but the bulls kept the pressure on and pushed BTC further north. This time, BTC even challenged $39,000. It briefly exceeded that level yesterday, which became the highest price tag in ten days.
However, bitcoin failed to sustain that level and has retraced to around $38,500 as of writing these lines. As such, BTC’s market cap has remained well above $700 billion.
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BTCUSD. Source: TradingView
Polkadot Surpasses Dogecoin
The alternative coins marked significant gains yesterday, with Ethereum leading the pack following a double-digit price surge. As of now, the second-largest digital asset has calmed and sits just under $2,800. Binance Coin, Ripple, and Dogecoin are in a similar position, with minor daily declines.
In contrast, Solana, Cardano, and Avalanche have marked insignificant increases since yesterday. SOL stands at $110, ADA is above $1.05, and AVAX is north of $70.
Polkadot’s 3% increase in a day means that DOT trades above $20. Moreover, DOT has become the 10th largest cryptocurrency by market cap, according to CoinMarketCap, thus replacing Dogecoin.
The cumulative market capitalization of all crypto assets has declined slightly since yesterday, but it’s still above $1.6 trillion.
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This week, we take a closer look at Ethereum, Ripple, Cardano, Solana, and Polkadot.
Ethereum (ETH)
Last night, the significant market crash pushed ETH’s price under the critical support of $3,000, which will now act as resistance. Unfortunately, the loss of this crucial psychological level is a major blow to most market participants and sets the stage for ETH to potentially explore lower levels this year. Compared to seven days ago, ETH lost 11.4% of its dollar value.
The outlook on the market is very bearish, and one of the possible scenarios is for ETH’s price to rally and confirm the $3,000 level as resistance, after which the correction may continue. The current support is now found at $2,800 but appears weak.
Looking ahead, considering this latest breakdown in market structure, ETH has a good chance to fall lower in 2022. Targets such as $2,000 or below are now a very real possibility due to the current price action. The only way this can be avoided is if ETH reclaims the $3,000 level and turns it into support again.
Chart by TradingView
Ripple (XRP)
XRP did not fare better after last night, losing the key support at $0.70, which is now being contested between bulls and bears. Overall, the cryptocurrency lost 9.9% of its price in the past week. The next key support level is found at $0.65 and may provide a short relief if the decline continues.
What is interesting to note about the XRP price action is that the drop yesterday was quite shallow if we compare it to BTC or ETH. This signals that the market already considers XRP to be at a significant discount. This may, of course, change in the future if the market remains bearish, but the bears were not as aggressive in this case.
Earlier this week, XRP gave some bullish signals, such as the higher lows on RSI and bullish MACD. However, due to this last drop in price, those signals have now been invalidated.
Chart by TradingView
Cardano (ADA)
ADA’s price action this past week resembles a roller coaster with price volatility being off the charts. After it rallied to $1.6, the price dropped back to $1.2. These are swings exceeding 30% in a few days. The key support just above $1 has not been tested during this most recent drop, but it did push ADA to erase most of its recent gains. Overall, the cryptocurrency is back where it was last week.
The resistance above $1.5 will likely not be tested any time soon considering current market conditions and the indicators on ADA are quickly turning bearish. It would be interesting to see how it performs in the coming week if the market remains bearish.
Looking ahead, Cardano just saw the release of its first decentralized automated market maker called SundaeSwap, which seems to have had a very difficult rollout with transactions stuck and huge slippage. The creators warned that they may face bottlenecks on the network, but this does not seem to bode well for ADA holders.
Chart by TradingView
Solana (SOL)
Yesterday night, SOL broke below the key support at $132, and the decline has temporarily stopped at the $120 level. However, this breakdown signals that SOL may fall to the next key support in the next few days found at $113.
The previous support has turned into resistance, and unless SOL moves above $132, it seems unlikely that this downtrend will end anytime soon. Overall, SOL had a terrible week, losing 15.6% of its value.
With this latest crash, the RSI has entered the oversold area (<30 points) on the daily timeframe, and the MACD did a bearish crossover. These are key signals that the bears have full control of the price action.
The overall picture for SOL is bleak, and the question is if it will manage to maintain a price level above $100. A failure there will signal a much deeper correction for SOL in 2022.
Chart by TradingView
Polkadot (DOT)
DOT also lost its key support at $24, ending a long consolidation period within a large price range ($24 – $32) that started in December 2021. Now, the price appears set to test the next key support level at $20. Due to this most recent price action, DOT has lost 11.2% of its valuation in a week.
The resistance is found at $24, as former support levels turn into resistance during an indecisive market. The indicators also continue to signal a bearish price action.
The coming week may see a general bounce across the market, and DOT may retest the $24 level. It is, however, important to keep an eye on the bigger picture and not be lured into potential traps.
Chart by TradingView
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This week, we take a closer look at Ethereum, Solana, Cardano, Ripple, and Polkadot.
Ethereum (ETH)
As expected, this past week, ETH has finally found support, seemingly putting a stop to the downtrend that started in November. The price managed to hold well above the $3,000 support level but is yet to recover in full, registering a 4.6% loss in the past seven days.
Should the current relief rally continue, then ETH has a good chance to retest the key resistance at $3,600, which will likely put up a strong fight. The current price action shows that traders have taken profit at around $3,300 after entering at the key support, where the market now seems to consolidate.
Looking ahead, ETH appears well-positioned to continue its climb towards the key resistance. On the way there, buyers will need to show tremendous strength to break through the downtrend that started in November.
Chart by TradingView
Solana (SOL)
SOL’s downtrend was stopped by the $130 support level. The sellers were unable to push the cryptocurrency lower, and the price has since bounced back up, moving fast towards $150, where SOL is currently facing some resistance. Overall, it lost 3% of its valuation in the past seven days.
If the cryptocurrency is able to move above $150, then the next key resistance is found at $170, and it’s likely to be a much more difficult level to break. However, since the price found support at $130, the volume and interest in SOL have increased, giving it a good momentum upwards.
Looking ahead, if SOL is unable to break above the $150 level, then it will likely consolidate above the key support until sufficient momentum comes back to push the price towards a breakout.
Chart by TradingView
Cardano (ADA)
Despite ADA showing a lot of resilience at the $1.2 support level, the bears eventually managed to push it lower to $1.1 this past week. Since then, the bulls stopped the selloff and put ADA back above $1.2. After this back and forth action, ADA registered almost no change in price compared to seven days ago.
Even if bulls are in control of the current price action, the overall trend for ADA remains bearish at the time of this writing. This latest decline has made a new lower low, and until ADA makes a higher high or a high low, it is unlikely that the bulls can reverse the downtrend.
ADA also has a key resistance at $1.5, which is quite a distance away from the current price. Therefore, buyers have to step up if the cryptocurrency is to break away from its current trend.
Chart by TradingView
Ripple (XRP)
XRP found its support this past week at $0.70 and has since moved higher towards $0.80, where it was rejected by the bears. Similar to ADA, the price today is very close to where it was seven days ago. Therefore, XRP managed to recover from the most recent low and appears keen to move higher.
The most significant resistance right now sits at $0.85, and XRP has to break the downtrend started in November to be able to move higher. A break of the key resistance would secure that.
Moreover, the buyers have some good news since the daily MACD did a bullish crossover today. This gives hope to XRP that a bullish momentum can form in the next few days. However, the key resistance remains a challenging level to break at this time.
Chart by TradingView
Polkadot (DOT)
DOT remains stuck in a very large range between the key support at $24 and the resistance at $32. The price bounced twice from the support, most recently this past Tuesday and DOT registered almost no change in its price compared to seven days ago – very similar to XRP and ADA.
The current bias for DOT can be interpreted as slightly positive because the daily MACD has crossed on the bullish side on Wednesday while the RSI is signaling a bullish divergence. These elements bring confidence that DOT may attempt a rally to the key resistance in the coming week.
It is too early to tell if DOT will be able to break the key resistance at $32, and the last time this was attempted, the price was sharply pushed back. Until a breakout takes place, the cryptocurrency will continue to move within the existing price range.
Chart by TradingView
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Polkadot briefly fell under $23, but it’s been up only ever since. Throughout the recovery, the RSI has formed a large bullish divergence compared to the low on December 20th. This has turned the momentum bullish for DOT, which is now moving quickly towards the key resistance at $32.
Chart by TradingView
Technical Indicators
Trading Volume: This current move higher is on good volume, but nothing is out of the ordinary, looking at the past weeks.
RSI: The daily RSI made a clear bullish divergence as indicated on the chart below by the yellow arrows. This was a signal for buyers that it was time to pay attention to DOT, and the price is now showing it.
MACD: The daily MACD is a day away from a bullish cross. This is good news for the bulls as DOT may enter into a sustained rally, at least until it faces the key resistance at $32.
Chart by TradingView
Bias
The bias on DOT is currently bullish. The indicators support this bias, as stated above.
Short-Term Prediction for DOT Price
DOT is on a mission, and the price may soon reach the key resistance at $32. Of course, the overall market momentum is an important thing to keep in proper consideration.
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Following the most recent price slides and enhanced volatility, bitcoin bounced off yesterday and touched $43,000 for the first time in nearly a week. The altcoins are in an even better position today with substantial price gains from Polkadot, Cardano, Avalanche, MATIC, and more.
Bitcoin Touched $43K
CryptoPotato reported the recent corrections from the primary cryptocurrency, which started a week ago. It traded at $47,000 when a sudden dump drove it to $43,000 in hours before another one took it south to just over $41,000.
BTC reacted somewhat positively at this point, and the bulls drove the asset to just under $43,000 a few days later. However, the landscape changed once again for the worse on Monday when the cryptocurrency plummeted below $40,000 for the first time since September 2021.
It bounced off just as sharply and reclaimed $42,000 hours later, which led to a large number of liquidations again. The volatility struck once more yesterday when BTC dipped to $41,500 before it shot up to above $43,000, which became the highest price line since the market crash started.
As of now, the asset stands just shy of $43,000, and its market capitalization has jumped above $800 billion.
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BTCUSD. Source: TradingView
Altcoins See All Green
The alternative coins suffered just as badly as bitcoin during the correction, but the past 24 hours have been significantly more positive. Ethereum slid below $3,000 two days ago, but a 5% increase on a daily scale has pushed the second-largest crypto to just under $3,300.
Binance Coin and Ripple are up by around 3% each to $465 and $0.75, respectively. Solana, Cardano, Polkadot, Terra, Avalanche, Dogecoin, MATIC, and Shiba Inu have produced even more impressive increases.
Consequently, SOL sits at $145, ADA is above $1.2, DOT is north of $26, LUNA is close to $80, AVAX is at almost $95, DOGE stands at $0.15, MATIC trades above $2.3, and Shiba Inu is at $0.000029.
More gains come from Fantom (22%), Oasis Network (17%), Harmony (15%), OMG Network (15%), Secret (13%), NEAR Protocol (11%), Mina (11%), and others.
The crypto market cap is up by $150 billion in two days and has reclaimed the $2 trillion mark.
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Following an 8% daily increase, DOT attempts to retest the key resistance at $32 on renewed momentum.
Key Support level: $25
Key Resistance level: $32
Polkadot’s DOT native token completed a short-term correction and is now creating a support floor and trading range between the support level at $25 and resistance at $32.
The first attempt to break out above this trading area was rejected last Monday. However, DOT appears ready for a second tryout.
Chart by TradingView
Technical Indicators
Trading Volume: A reasonable amount of volume on the last attempt on Monday to break above $32. The current volume is a bit low (maybe due to the weekend), but it favors the buyers right now. Watch out for the volume on Monday.
RSI: The RSI is making higher lows, which is a bullish sign, and is currently hovering just above 50 points – the neutral level.
MACD: The daily MACD is bullish and is heading up, despite the rejection at key resistance last Tuesday. This is a promising sign for bulls.
Chart by TradingView
Bias
The bias on DOT is somewhat bullish, but a break of the critical resistance is needed to confirm this.
Short-Term Prediction for DOT Price
DOT managed to stop the downtrend and consolidate under the key resistance at $32. Now, buyers appear eager to take DOT back up again as they prepare the stage to break the key resistance. Should they fail, DOT will face the ‘floor’ level at $25. Watch out for possible volatility to return next week following the new year holiday.
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DOT had a fantastic rally last week when the price increased by 40%. However, this week, DOT’s rally ended when the resistance at $33 rejected the price from moving higher. Today, the correction continued, and DOT has fallen under $30. The current support is found at $26.
Chart by TradingView
Technical Indicators
Trading Volume: Sustained volume both during the uptrend and the current downtrend. This shows that market participants have taken quite an interest in DOT recently.
RSI: The daily RSI has made a higher high during the rally, which is a strong bullish signal. However, after the rejection at $33, the RSI is falling. This can quickly change as soon as DOT finds support.
MACD: The daily MACD is bullish, but the histogram is making lower highs after the rejection at $33. This is not concerning as long as the moving averages don’t do a bearish crossover.
Chart by TradingView
Bias
The current DOT bias is neutral.
Short-Term Prediction for DOT Price
DOT had a very nice recovery last week after falling for over 40 days. It is important for the price to return to the uptrend after this correction, as otherwise, the top at $33 could be interpreted as a lower high within a larger bearish trend.
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After a 24-hour hiatus below the coveted $50,000 mark, bitcoin has bounced off and reclaimed it. Most altcoins are also slightly in the green, while Cardano and Polkadot have stolen the show with impressive 8% gains on a daily scale.
Bitcoin Reclaims $50K
It was just several days ago – before Christmas – when the primary cryptocurrency struggled at $48,000 after unsuccessful attempts to overcome $50,000. The landscape changed at that point when the bulls initiated an impressive leg up that resulted in finally breaking above that level.
Bitcoin kept climbing in the following hours and came close to $52,000 for its highest price line in over two weeks. Yesterday, though, BTC dumped by a few thousand dollars and found itself below $50,000 once more.
Yet, the asset reclaimed that line in the past 24 hours by touching $51,000 earlier today. As of now, BTC stands above $50,500, and its market capitalization is north of $950 billion.
BTCUSD. Source: TradingView
ADA and DOT Surge 8%
Most alternative coins have mimicked BTC’s performance as of late, and the past 24 hours are quite similar. Ethereum went down to $4,000 yesterday, but a minor daily increase has reaffirmed its stance above that particular level.
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Binance Coin, Solana, Ripple, Dogecoin, and Shiba Inu are also slightly in the green, while Terra has marked a minor retracement.
Avalanche has jumped by 4.5% in a day to above $115. However, Cardano and Polkadot have stolen the show with impressive 8% increases. Consequently, ADA now stands close to $1.55, while DOT has reclaimed $30.
Even more gains come from Kadena (26%), Voyager Token (15%), Zilliqa (15%), Theta (14%), Aave (13%), Oasis Network (12%), Uniswap (12%), Mina (12%), Helium (12%), Monero (11%), and others.
The crypto market cap is up by $50 billion since yesterday and is close to $2.4 trillion.
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This week, we take a closer look at Ethereum, Ripple, Cardano, Polkadot, and Polygon.
Ethereum (ETH)
Ethereum had a very volatile week with prices falling close to $3,600 before reversing back above $4,000 yesterday in a surprising move. Unfortunately, at the time of this post, ETH lost the $4,000 level again, ending the past seven days with a 7.5% decline.
The price action has made both a lower low and a lower high this week. Because of this, the trend remains bearish, and unless buyers come in force to push prices higher, it is tough to expect a reversal in this trend. ETH found good support on the $3,700 level, and this is likely to be retested soon if buyers fail to stop the downtrend. The resistance sits at $4,000.
The indicators on the daily timeframe remain bearish, and ETH also suffered a 10% pullback versus Bitcoin, losing most of the recent gains on the ETH/BTC pair. For this reason, Bitcoin has increased its dominance in the overall crypto market share. Looking ahead, the best hope for bulls is for ETH to stop its downtrend and consolidate under $4,000 before attempting another break above this key level.
Chart by TradingView
Ripple (XRP)
This week, XRP continued to consolidate in a tight range between the $0.89 resistance and $0.75 support levels, lacking the strength to break out. Overall, XRP had a poor week, with a 6.6% loss in price compared to seven days ago.
However, there are some early signs that this consolidation may prepare the stage for a possible breakout. The daily MACD completed a bullish cross three days ago, and the RSI has been making higher lows and higher highs. This calls for some optimism in the future, as XRP bulls may attempt another break of the key resistance level. That would set the stage for XRP to reclaim its $1 valuation.
Looking ahead, XRP is facing two challenges. The first is trying to break out from this range, and the second is doing so in an environment where the overall market is bearish (see ETH above). This will not be easy, but XRP is known to diverge from the overall market at times.
Chart by TradingView
Cardano (ADA)
ADA lost a critical support level last week, falling under $1.36 to find support on the $1.2 level. In doing so, it fell below a key trendline that has held since March 2020. Because ADA’s price closed below this level, the chances of recovery are becoming less likely with each passing day. However, the selling pressure has not been significant since then and ADA only lost 4.9% in the past seven days.
Currently, ADA’s price is consolidating in a tight range, similarly to XRP. The $1.36 level now acts as a resistance, and a fall below the key support level at $1.2 may push ADA to the $1 level.
Looking ahead, it is crucial for the cryptocurrency to stop the downtrend and not lose its key support level. Should that be successful, then ADA can attempt a recovery.
Chart by TradingView
Polkadot (DOT)
DOT’s poor performance has continues this week as well, having failed to stop the downtrend discussed last time. For this reason, it registered another 7.6% loss in the past seven days.
The current price action is barely holding onto the $26 support level. Should DOT fail here, then the next key support will be found at $20. During this downtrend, the daily RSI entered the oversold area from where it quickly bounced up, forming a bullish divergence as price went lower. Because of that, this downtrend could come to an end soon, particularly as MACD just did a bullish cross on the daily timeframe.
Looking ahead, DOT could have a nice relief rally to pause the current downtrend. Buyers will surely be very interested in DOT considering its price is at a 50% discount compared to its all-time high at $55. In such a scenario, the resistance at $32 is the biggest challenge for bulls.
Chart by TradingView
Polygon (MATIC)
MATIC’s rally has come to an end. After a very strong performance in the past, this week, MATIC ends in red with a 3.6% loss in price. Moreover, the bearish divergence discussed in our last analysis appears to hold true so far as MATIC’s price approaches the end of the ascending triangle (in blue).
If the cryptocurrency fails to push higher and break the $2.2 resistance, then price may fall to the key support at $1.6, confirming the bearish divergence on the RSI. On top of that, the daily MACD has been bearish for the past five days with no clear sign of a reversal yet.
Volume has also decreased since the last attempt to break the resistance. This setup puts MATIC under a lot of pressure from bears. Looking ahead, MATIC is likely to exit from this ascending triangle in the coming week. Best to be prepared for that, particularly if price falls lower.
Chart by TradingView
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This week, we take a closer look at Ethereum, Ripple, Polkadot, Luna, and Avalanche.
Ethereum (ETH)
The price action in November and December felt a bit like a roller coaster with ETH touching the support at $4,000 several times before reaching $4,500 only to be pushed back again. Luckily for bulls, the key support level at $4,000 has held well on every test. So long as this remains the case, ETH has a good chance at recovery.
The performance of ETH in the past seven days was poor with a 9% drop, mostly due to the December 4th crash which set the tone for the remainder of the week. It is crucial for ETH not to close a daily candle under the key support as that would spell trouble for the bulls.
On the other hand, if we take a look at its performance against Bitcoin, this past week was one of the best for ETH. It reached 0.088 BTC, a price not seen since early 2018. For this reason, the cryptocurrency is well-positioned to outperform Bitcoin in the near term, particularly due to the major breakout on the BTC/ETH pair where ETH escaped from the 0.080 BTC resistance.
Chart by TradingView
Ripple (XRP)
This week, XRP has finally found support on the $0.75 level after a non-stop decline in price since it broke below $1. The crash on December 4th was not easy on XRP which dropped all the way to $0.60 before quickly recovering most of the losses. At the time of this post, XRP is sitting at a 13.5% loss for the past seven days.
The current support gives hope of a reversal in this bearish trend. XRP bulls even attempted a break above the key resistance at $0.89 after finding support. However, the bears stood firm and pushed the price back.
Looking ahead, XRP finds itself in a range and may continue to consolidate in the next week before attempting another breakout.
Chart by TradingView
Polkadot (DOT)
DOT had a very disappointing month so far with a 25% loss in price compared to seven days ago. This bearish trend started on November 4th when DOT made a new all-time high at $55. Since then, the cryptocurrency was unable to stop the downtrend and all support levels were broken.
The current support level at $26 may provide hope of a reversal. However, the price action remains bearish and this was exacerbated by the December 4th crash. If the RSI can make a higher low as the price goes lower, then that may be the first signal that this downtrend is approaching the end.
At the time of this post, DOT looks very weak and the indicators are all bearish, including volume which has remained high as the price fell. This is not good for bulls, but the current support at $26 has much more confidence than previous levels due to the past price action where DOT found support her several times.
Chart by TradingView
Luna
Considering current market conditions, Luna remains an outlier and one of the best performers in December with a 5% increase in price in the past seven days. Luna does not appear to have been affected at all by the December 4th crash, recovering in full on the same day. This was a clear sign of strength.
However, there are some concerns that its strong performance in the past weeks may come to a pause, particularly as Luna failed to break above the $78 resistance after two attempts. This is also highlighted on the RSI and MACD indicators, which are curving back down. If the cryptocurrency fails to sustain the momentum from earlier this month, then a consolidation or mild correction may take place.
At the time of this post, Luna found good support on the $65 level and so long as this holds, it can make a new attempt at breaking the key resistance and all-time high at $78.
Chart by TradingView
Avalanche (AVAX)
AVAX closed the last seven days in red with a 20% decline, which was mostly due to the December 4th crash. Since then, price found good support on the $78 level which is almost half of the all-time high at $147.
There were four attempts to break above the key resistance at $95, but each of them was rejected so far. This shows that the bears will not allow AVAX to go higher in the near future and bulls are stuck in a range between $78 and $95.
Looking ahead, AVAX’s indicators remain bearish, but the price has a good chance at a reversal from this area. This is because the all-time high from September at just under $80, should act as strong support now.
Chart by TradingView
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