This week we’re taking a closer look at Ethereum, Cardano, Ripple, Solana, and Luna.
Ethereum (ETH)
On Tuesday, Ethereum fell below $ 4,000 (the level is currently acting as resistance) after failing to resume its rally from the previous week. The price hit a lower low and closed the last seven days in red with a loss of 8%.
The current price move has created a large descending wedge (in blue) that will represent a bullish pattern as long as the price manages to break above it after the correction is complete. This possibility is also confirmed by the MACD histogram, which has hit higher lows in the daily time frame, suggesting that a bullish divergence is materializing as price moves within the wedge boundaries.
Looking ahead, ETH is unlikely to exit the wedge anytime soon, and if the correction continues, the cryptocurrency could even hit $ 3,300 before a possible breakout. Current support at $ 3,600 has held up well so far, but price has hit lower lows and lower highs, indicating a bearish trend. If ETH can close a day candle above the wedge, it has a good chance of returning to the uptrend.
Chart according to TradingView
Cardano (ADA)
ADA has failed to move above $ 1.5, which is currently acting as resistance after a sustained rally from the $ 1.2 support level. That latest cancellation resulted in a loss of 8.6% over the past seven days.
The biggest challenge for ADA is to move back above the trendline that has been held since March 2020 and was lost on December 9th. ADA tried to come back above this important trendline three times but was denied each time – most recently on Tuesday.
ADA is currently in a downtrend and could retest key support levels in the coming week. Its volume shows that interest is high and until a breakout occurs, the price is likely to hover in a range between $ 1.5 and $ 1.2.
Chart according to TradingView
Ripple (XRP)
XRP had a difficult week after being turned down by the $ 1 resistance level. As a result, it lost most of the previous week’s gains and closed the last seven days with a 15.6% loss in red. Current support is at $ 0.75 and should provide buyers with a good zone of defense.
Due to the decline, the indicators have turned bearish with the daily MACD forming a bearish cross today and the RSI falling below 50 points. Even so, the RSI managed to hit higher lows despite the correction. As such, the bulls have a good chance of reversing the downtrend soon and making another attempt at the $ 1 resistance.
If XRP can stop the downtrend in the coming week, buyers could come back to drive price towards key resistance, which has proven to be quite difficult so far.
Chart according to TradingView
Solana (SOL)
The SOL rally ended on Tuesday as the overall market turned. Price fell below the rising wedge in blue (which was a bearish pattern) and stopped at the $ 170 support, down 7.9% over the past seven days.
The cryptocurrency failed to sustain its rally from the previous week and the resistance at $ 205 proved too heavy to break on the first try. The price is currently consolidating just above the current support level and if SOL can stop the downtrend here then it has a good chance of recovering next week.
If buyers return to SOL, it could attempt to break the key resistance at $ 205 again. Until then, the price should stay in a range between $ 205 and $ 170.
Chart according to TradingView
Luna
After Luna hit an all-time high of just over $ 100 last week, a correction kicked in, closing the last seven days on a 4.9% decline in red.
Current support for Luna is $ 78 and the price will likely retest this area before hoping for another uptrend. The resistance at USD 100 proved too difficult to break as sellers took profits at this key psychological level.
Looking ahead, Luna’s indicators turned bearish on a daily timeframe after the key resistance was rejected. Because of this, despite the bullish fundamentals of the Terra Luna ecosystem, the price correction may take some time.
Chart according to TradingView
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TradingView’s cryptocurrency charts.
