This week we take a closer look at Ethereum, Ripple, Cardano, Solana, and Polkadot.
Ethereum managed to book a 9.5% increase over the past seven days despite this latest setback. However, buyers are now on the defensive as the price has broken below the parabola that formed in early January. This indicates that sellers may soon take over.
When the parabola is broken, it indicates change. In this case, Ethereum managed to reach $1,600 before the sellers came back. It looks like this major resistance will hold in the near term as the buyers seem to be running out of steam.
Going forward, a retest of the support at $1400 looks likely. This could constitute a healthy bounce and an expected move, given the equivalent price rally for most of January.
XRP tried to break above the key resistance at 40 cents but failed. Although the price managed to record a weekly gain of 4%, it was not enough to restore the bulls’ lead. Because of this, the cryptocurrency may hover below a major resistance and consolidate in the short term.
XRP appears to be entering a flat trend as both bulls and bears are switching positions to control the price action. With good support at 36 cents, it can continue bouncing between key levels for some time until a decisive breakout.
Looking ahead, this cryptocurrency has a bullish bias towards higher timeframes (weekly), and this slowdown could be a pause.
Cardano’s parabolic rally ended when it reached the 36 cent resistance level. This slowed the bulls who only managed gains of 2.4% in the past week.
The current support is at 31 cents, and the price may test it before the bulls try to regain control of the ADA. After such a significant increase, a decline is normal. The only question is how low bears can take ADA before buying CV.
Looking ahead, this cryptocurrency looks well positioned to hold most of its recent gains and try to continue towards a higher valuation as long as the bulls do an excellent job of defending the key support.
Solana’s climb continued this week, resulting in a 27% increase. This performance makes SOL the best performing cryptocurrency on our list for the third week in a row. However, the current price action is showing signs that the bullish momentum is waning.
With buy volume low, Solana may have trouble preserving and protecting these recent gains. With the price rejected at the $25 resistance, sellers can take the opportunity to take the SOL for a correction.
The key levels of support are $18 and $15, with the latter having the best chance of stemming any significant selling pressure.
Polkadot also posted an impressive rally in January, posting a gain of 11.3% in the past week alone. Buyers also tried to break above $6, but the bears wouldn’t allow it. Because of this, the price was pushed down towards the crucial support at $5.5.
Since the beginning of 2023, the price of DOT has increased from $4 to $6. This was caused by a breakout from the falling wedge represented in blue on the chart below. Falling Wedges is usually a bullish structure, and in this case the rally went as expected.
The biggest challenge for DOT is to hold above $5 and use it as a pivot for a higher valuation later on. The sellers seem eager to stop the price at $6, so the bulls need to regain ground around a key support level if they hope to continue this rally.
Cryptocurrency Price Analysis After Jan 20: ETH, XRP, ADA, SOL, and DOT debut on CryptoPotato.