This week we’re taking a closer look at Ethereum, Ripple, Cardano, Polkadot, and Polygon.
Ethereum (ETH)
Ethereum had a very volatile week with prices dropping to nearly $ 3,600 before surprisingly bouncing back above $ 4,000 yesterday. Unfortunately, at the time of this post, ETH was again down the $ 4,000 level, ending the last seven days with a 7.5% decline.
Price action hit both a lower low and a lower high this week. Because of this, the trend remains bearish and unless buyers are pushing prices up, it is hard to expect a trend reversal. ETH found good support around the $ 3,700 level and this is likely to be retested soon if buyers fail to stop the downtrend. The resistance is at $ 4,000.
The daily timeframe indicators remain bearish and ETH also suffered a 10% drop versus Bitcoin and lost most of the ETH / BTC pair’s recent gains. Because of this, Bitcoin has increased its dominance in the overall crypto market share. Looking ahead, the bulls’ best hope is that ETH will stop its downtrend and consolidate below $ 4,000 before attempting another break above these key levels.
Chart according to TradingView
Ripple (XRP)
This week, XRP continued to consolidate in a narrow area between the $ 0.89 resistance and the $ 0.75 support level and didn’t have the strength to break out. Overall, XRP had a bad week, with a price loss of 6.6% compared to seven days ago.
However, there are some early signs that this consolidation could set the stage for a possible breakout. The daily MACD completed a bullish cross three days ago, and the RSI has made higher lows and higher highs. This requires some optimism going forward as XRP bulls could seek another break through the important resistance level. This would set the stage for XRP to reclaim its $ 1 valuation.
Looking ahead, XRP faces two challenges. The first tries to break out of this range, the second in an environment in which the overall market is declining (see ETH above). This won’t be easy, but XRP is known to sometimes deviate from the overall market.
Chart according to TradingView
Cardano (ADA)
ADA lost critical support level last week, falling below $ 1.36 to find support at the $ 1.2 level. It fell below an important trend line that has been in place since March 2020. As ADA closed below this level, the chances of recovery becoming less likely every day. The selling pressure has not been significant since then, however, and ADA only lost 4.9% in the past seven days.
Currently, ADA’s price is consolidating in a tight range, similar to XRP. The $ 1.36 level is now acting as resistance and a break below the key support at $ 1.2 could push ADA to the $ 1 level.
Looking ahead, it is crucial for cryptocurrency to stop the downtrend and not lose its important level of support. If this is successful, ADA can attempt a restore.
Chart according to TradingView
Polkadot (DOT)
DOT’s poor performance continued this week as it failed to stop the downtrend discussed last time. Because of this, it posted another 7.6% loss over the past seven days.
The current price action is barely holding the USD 26 support level. Should DOT fail here, the next major support will be found at USD 20. During this downtrend, the daily RSI entered the oversold territory, from where it quickly bounced up and formed a bullish divergence as the price fell. Because of this, this downtrend could be coming to an end soon, especially since the MACD has just made a bullish cross in the daily timeframe.
Looking ahead, DOT could have a nice recovery rally to stop the current downtrend. Buyers will certainly be very interested in DOT considering the price is 50% off its all-time high of $ 55. In such a scenario, the resistance at $ 32 is the bulls’ main challenge.
Chart according to TradingView
Polygon (MATIC)
The MATIC rally is over. After a very strong performance in the past, MATIC ended this week with a price loss of 3.6% in the red. In addition, the bearish divergence discussed in our last analysis appears to apply as long as MATIC’s price approaches the end of the ascending triangle (in blue).
If the cryptocurrency fails to push up and break the USD 2.2 resistance, the price may fall to the key support at USD 1.6, confirming the bearish divergence of the RSI. Additionally, the daily MACD has been falling for the past five days and there have been no clear signs of reversal.
Volume has also declined since the last attempt to break resistance. This setup puts MATIC under strong pressure from bears. Looking ahead, MATIC will likely get out of this ascending triangle in the coming week. It is best to be prepared for this, especially if the price is going down.
Chart according to TradingView
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