This week we take a closer look at Ethereum, Ripple, Cardano, Solana and Shiba Inu.
ETH failed to break above $3,200 this week and fell back to the $3,000 support level yesterday, where the price is now consolidating. Despite this most recent setback, the cryptocurrency has had an outstanding performance this week, with a price increase of 16% over the past seven days.
The big question is whether ETH can hold more than $3,000. If successful, the bulls might be able to re-attempt the $3,200 resistance in the coming week. If they fail, however, the cryptocurrency could fall to the next support level at $2,800, which would take it down to a critical psychological level ($3,000).
For the future, the indicators remain bullish, which encourages optimism. Buyers need to defend the $3,000 level. Otherwise, the sellers could resume the price action in the coming week.
XRP saw a major breakout this week, with the price breaking above key resistance at $0.70 and quickly reaching $0.90 thereafter. Overall, it was a fantastic week for XRP with a price increase of 34%.
However, it failed to break above $0.90 and is now in a correction with support at $0.80. This is not surprising, given the massive rally that occurred not so long ago. If $0.80 fails, then XRP may fall back to the $0.70 level, which now serves as support (was the resistance before the breakout).
Indicators are still bullish for XRP, and this pullback can also be explained by the daily RSI, which briefly entered overbought conditions during the rally and has now fallen back below 70 points. Once this correction is complete, XRP may attempt a new rally to test the critical psychological level at $1.
ADA also had a good week, but resistance at $1.2 did not allow it to rise, and it has been struggling ever since. Nevertheless, the cryptocurrency closes the last seven days in the green with a nice price increase of 9%.
Given the ongoing correction, ADA may fall back to key support at $1.1 before a further rally is expected. Even if this happens, the overall price action remains bullish, and after the pullback, ADA may rally once more and try to break above $1.2.
The indicators remain bullish and look likely to remain so if ADA does not fall below key support. This should set it up for a nice rally next week if the bullish momentum resumes. On the other hand, a drop below $1.1 would likely push ADA into a downtrend.
After rallying to $120, SOL failed to rise, and since then the price has been falling towards the key support at $100. SOL is unlikely to roll back at this time, and a test of key support looks likely. Despite the current correction, SOL still managed to close the last seven days in green with a price increase of 5%.
Volume fell as price rose last week, which was an early signal that SOL lacked the momentum to sustain the rally. The MACD remains bullish on the daily timeframe, but the histogram shows losing momentum with lower highs.
The next week will be crucial for SOL, and the buyers must do their best to defend the $100 level. Any failure there will only encourage sellers to take SOL below $100, which would be a significant loss.
Shiba Inu (SHIB)
SHIB has been the best performer on our list, rising 50% in price over the past seven days after a major breakout of the descending channel (shown in blue on the chart). Now the price is consolidating above the key support at $0.000029.
If this consolidation continues and the support level holds, then SHIB may plot another step, which could take it all the way up to $0.000040. The indicators remain bullish for now, and the only concern is the drop in volume, which may cast some doubt on the strength of this rally.
Looking ahead, SHIB ended the downtrend and started a new push with a bang. SHIB is unlikely to make a lower given this latest development. Therefore, the most likely scenario now appears to be consolidation or a continuation of the rally.
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Cryptocurrency charts by TradingView.