This week we’re taking a closer look at Ethereum, Solana, Cardano, Ripple, and Polkadot.
Ethereum (ETH)
As expected, ETH finally found support last week and appears to have stopped the downward trend that began in November. The price has held well above the $ 3,000 support level but has yet to recover fully, posting a 4.6% loss over the past seven days.
Should the current recovery rally continue, ETH has a good chance of retesting the all-important resistance at USD 3,600, which is likely to provide a tough fight. Current price action shows that traders took a profit at around $ 3,300 after arriving at key support where the market now appears to be consolidating.
Looking to the future, ETH seems well positioned to continue its rise to become a key resistance. Along the way, buyers will have to show tremendous strength to break the downtrend that began in November.
Chart according to TradingView
Solana (SOL)
SOL’s downtrend was stopped by the USD 130 support level. The sellers were unable to push the cryptocurrency down and the price has since risen again and has moved quickly towards $ 150 where SOL is currently facing some resistance. Overall, it lost 3% of its rating in the past seven days.
If the cryptocurrency is able to soar above $ 150, the next major resistance will be found at $ 170, and it is likely a much more difficult level to break through. However, as the price found support at $ 130, the volume and interest in SOL has increased, giving it good upside momentum.
Looking ahead, if SOL is unable to break above the $ 150 mark, it will likely consolidate above key support until enough momentum returns to push the price towards a breakout.
Chart according to TradingView
Cardano (ADA)
Although ADA showed a lot of resilience at the $ 1.2 support level, the bears eventually managed to push it down to $ 1.1 last week. Since then, the bulls have stopped the sell-off, bringing ADA back above $ 1.2. After this back and forth, ADA saw almost no price change from seven days ago.
While the bulls control current price action, the overall trend for ADA remains bearish as of this writing. This recent decline has made a new lower low and until ADA makes a higher high or high low the bulls are unlikely to reverse the downtrend.
ADA also has a major resistance at $ 1.5 which is quite a long way from its current price. Hence, buyers have to rise if the cryptocurrency is to break away from its current trend.
Chart according to TradingView
Ripple (XRP)
XRP found support at $ 0.70 last week and has since moved towards $ 0.80 where it was rejected by the bears. Similar to ADA, the price today is very close to what it was seven days ago. As a result, XRP managed to bounce back from its recent low and appears keen to move higher.
The most significant resistance right now is at $ 0.85 and XRP needs to break the downtrend that began in November to move higher. Breaking the key resistance would ensure that.
Additionally, buyers have some good news as the daily MACD made a bullish crossover today. This gives XRP hope that bullish momentum can build up in the next few days. However, key resistance currently remains a difficult level to break.
Chart according to TradingView
Polkadot (DOT)
The DOT is stuck in a very wide range between the key support at $ 24 and the resistance at $ 32. Price bounced off the support twice, most recently last Tuesday, and DOT saw almost no change in price from seven days ago – very similar to XRP and ADA.
The current bias for DOT can be interpreted as slightly positive as the daily MACD crossed on the bullish side on Wednesday while the RSI signals a bullish divergence. These elements create confidence that DOT could attempt a rally on key resistance in the coming week.
It is too early to say if DOT will be able to break key resistance at $ 32 and the last time it was tried it was pushed down heavily. Until it breaks out, the cryptocurrency will continue to hover within the existing price range.
Chart according to TradingView
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TradingView’s cryptocurrency charts.
