A lot of the cryptocurrency market is in the red right now. Let’s see how some of the hot cryptocurrencies have done this week. This week, we take a close look at Ethereum, Ripple, Polkadot, Luna, and Avalanche.
The price action in November and December felt like a roller coaster with ETH hitting support at $4,000 several times before getting pushed back down again. However, the key support level at $4,000 has held well on every test. As long as this remains the case, ETH has a good chance of recovering.
The performance of ETH in the past 7 days has been poor, as it is mainly because of the crash on Dec 4th, ETH dropped by 9%, but we will try to reverse that trend.
However, if we compare the performance of ETH and BTC in the past week, this last week was one of the best for ETH. It reached 0.088 BTC, a price not seen since early 2018. Therefore, 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.
After weeks of crashing in price, XRP finally got 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. Today, XRP is down 13.5% in the last 7 days.
Ripple bulls have been trying to break above the $0.89 support level. However, the bears have had their say and pushed the price back.
It’s tough to forecast exactly where XRP will go in the next few weeks, but it should be in a range and it should keep consolidating before attempting another breakout.
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 price action suggests the recent rally in the market is coming to an end. The support level of $26 appears to have been tested and may provide hope of a reversal. However, the RSI is falling to new lows, and the last crash was in December. If the RSI can close above the 50 level, that may be a signal that the downtrend has ended and the market is ready to reverse.
The Dot is weak and the indicators are bearish, including volume, which has remained high as the price fell. This isn’t good for bulls, but the current support level at $26 is much more confident than previous levels due to the past price action where DOT found support several times.
While the market conditions are difficult, Luna remains an outlier and one of the best performers in December with a 5% increase in price in the past seven days. Luna did not appear to be affected by the recent drop in prices, and she recovered on the same day. This was a clear sign of strength.
In general, the Bitcoin Cash market is consolidating in a tight range. The RSI and MACD signals suggest that a possible price bounce is in the works.
This trade is great for those with an appetite for risk. So long as the $65 support level holds, this can make a new attempt at breaking the all-time high at $78.
Since December 4th, AVAX has been in the red for the past seven trading days, with a drop of 20%. This support has now been seen at around $78, which is close to half of the all-time high at $147.
In the past there were four attempts to break above the key resistance at $95, but each of them was rejected. That shows that the bears will not let AVAX go higher in the near future and bulls are stuck in a range between $78 and $95.
Looking ahead, the indicators are bearish. 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.
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