The cryptocurrency market is not calm yet. Bitcoin (BTC) only ended the trading week with a slight price discount, but at the beginning of the week, the price of BTC again lost more of its value and is currently trading below $ 48,000 again.
Bitcoin is not yet regaining its former strength. The current price correction is also causing a sustained drop in prices in the altcoin market. Various political and economic uncertainties continue to have a negative impact on price developments across the crypto market. As mentioned several times recently, investors don’t seem to see Bitcoin as a safe haven against rising inflation, as they expected. Rather, the weakness of many tech stocks is increasingly shifting to the crypto market. The current uncertainty is reflected, among other things, in the continued strength of the dollar.
Best Price Development Among Top 10 Altcoins: Ripple (XRP)
Ripple’s price can hold up relatively well and lead to a slight price increase of around three percentage points in a weekly comparison. However, this trend should not hide the fact that the XRP rate has also drastically corrected in recent weeks of trading. XRP price is currently trading below all moving average lines on the daily chart, a clear indication of weakness. As long as Ripple cannot regain resistance at $ 0.89, the current corrective move threatens to expand.
Bullish variant (ripple)
Only when the bulls manage to lift the XRP price back above the EMA20 (red) to $ 0.89, a decision on the direction for the next period can be expected. The red resistance zone between $ 0.94 and $ 1.01 is of particular importance. In addition to EMA50 (orange), EMA200 (blue) and MA200 (green), this zone has already been a difficult obstacle to overcome on several occasions. If the bulls manage to regain this zone dynamically, a subsequent rally to $ 1.05 is conceivable. Superstrend is another strong technical hurdle. Also, the upper Bollinger band is just above it, which is also likely to have a price capping effect. Therefore, a price rebound is very likely from today’s perspective. On the other hand, if the buyer’s warehouse manages to break the daily closing price above $ 1.05 and subsequently also breaks the general downtrend red line at $ 1.10, the chart will light up significantly.
Then Ripple could rally between $ 1.20 and $ 1.28 towards the orange zone. Only when Ripple breaks the high of $ 1.34 sustainably will there be more upside potential in the direction of the September 6 high of $ 1.42. This resistance level needs to be dynamically overcome to develop further trending dynamics towards $ 1.58. If there is also no clear bounce south here, a march through the purple resistance zone is also conceivable. The target for the bulls should be to hit resistance at $ 1.74. If this price mark can also rebound later without a significant pullback, investors will focus on the maximum bullish target price in the form of the yearly high of $ 1.97. At the moment, no increase is expected above $ 2.00; the ripple chart is currently too weak.
Bearish variant (ripple)
If the price of XRP falls back into the green support zone between $ 0.75 and $ 0.78 in a timely manner, a directional decision can be expected for the next few trading days. A relapse below $ 0.75 opens up further potential for a relapse to $ 0.69. The lower Bollinger Band is currently running here. If this support zone does not stop either, a price drop to $ 0.64 or even $ 0.60 cannot be ruled out in the medium term. This would retest the December 4 selloff low.
If the Fibonacci 23 retracement at $ 0.59 is also permanently abandoned, the June and July 2021 lows at $ 0.51 are likely to be retested. Here the bulls are likely to hit the bottom again to avoid the final relapse to lower prices. If this attempt fails, a sell in the blue support area between $ 0.40 and $ 0.44 is no longer excluded. Investors should watch the current situation from the sidelines for now and wait for a fund to form.
The RSI indicator and the MACD show sell signals. The MACD indicator is currently at least about to generate a buy signal. A look at the weekly chart confirms Ripple’s bearish picture. Both indicators also show weekly sell signals, reinforcing the bearish picture.
Worst price development among the top 10 altcoins: Solana (SOL)
The course that Solana continues to correct this week. Currently, Solana threatens to yield the turquoise support zone and continue with the correction of the last weeks. If there is no timely stabilization, the SOL rate threatens to expand its correction in the direction of the support at $ 150.03.
Bullish variant (Solana)
Solana also has to face a discount this week. The aim of the bulls now should be to regain the 38th Fibonacci retracement at $ 171.04 as quickly as possible to avoid a further correction. If SOL price is able to subsequently buy back above $ 180.50, the area around the 1950s Fibonacci retracement at $ 188.03 comes into focus. Just above it, the EMA20 (red) and EMA50 (orange) run two important skid resistance lines. Only when the bulls can sustainably break above this area of the chart does the chart light up briefly.
A directional decision is then made in the area of the Fibonacci 61 retracement at $ 205.01. More recently, Solana bounced south several times. Only when this resistance is broken by the daily closing price is a subsequent rise in resistance at $ 218.98 conceivable. Here, the super trend currently acts as a mark of resistance. If the buying side can generate enough buying pressure and dynamically break out of the superstrend, a breakout towards the Fibonacci 78 retracement at $ 229.19 should be planned for. If the bulls regain this resistance without any significant setback, the red resistance zone will be targeted as the target area. In addition to several highs, the upper Bollinger band sits just below $ 240.00. On the first try, the SOL course will likely fail here.
The rocky road to the highest of all time
Only when the SOL price can pass this resistance level at the daily closing price is a renewed attack towards the conceivable all-time high. To do this, however, Solana needs a reinforcing global market. From the perspective of the current chart, Solana is not expected to go it alone. If, on the other hand, the bulls manage to stabilize the SOL price in the red and subsequently break the previous all-time high, new targets at $ 299.14 and $ 315.26 will be triggered.
These targets are derived from Fibonacci extensions 127 and 138. If Solana can stay in the $ 260 range over the medium term, a gradual increase in the direction of the maximum price target of $ 348.94 in the coming months of trading cannot be ruled out. For the time being, however, investors should wait for the price correction to end before making any new investments in Solana.
Bearish variant (Solana)
Bears still hold the reins. If the seller succeeds in limiting the SOL rate below the turquoise zone at $ 169.28, the possibility that a correction in the direction of the Fibonacci 23 retracement at $ 150.03 will widen further increases. If Solana falls below this support at the daily closing price, a relapse to the October 12 low of $ 138.13 is planned. The EMA200 (blue) is also currently running in this area. The buyer’s side is likely to want to initiate a countermove here at the latest. If the entire cryptocurrency market continues to come under pressure to sell in the coming weeks and, subsequently, Solana also leaves the blue support zone on a sustained basis, the orange support zone will move directly into the focus of investors.
In particular, the low of $ 116.05 will play a key role. In addition to the September 21 low, the MA200 (green) can also be found here. In order not to completely cloud the image of the graph, it is essential here to hit bottom. On the other hand, if the bears can break out of this zone sustainably, the correction should continue. As a result, a relapse to $ 82.07 is increasingly likely. In the medium term, Solana could correct the breakout zone between $ 61.05 and $ 55.93 before a bullish countermove begins.
The MACD indicator and the RSI continue to show sell signals on the daily chart. Both indicators are in an oversold status, but as long as it doesn’t bottom out, this can only be seen as a first indication of a bullish countermove.
Top 10 stability
The current formation in a trading range in Bitcoin is also causing prices to drop in most of the top 10 Altcoins. Only the weekly winner Ripple (XRP) shows a price increase of a good three percentage points on a weekly basis. Avalanche (AVAX) and Polkadot (DOT) also hold up relatively well, each losing less than a percentage point. In contrast, Terra (LUNA), the best performing company in recent weeks of operations, showed more significant profit taking and fell 12 percent. Only the weekly loser Solana (SOL) still cannot get rid of its relative weakness of the last weeks and with a course correction of 15 percent it rises to the weekly loser. The ranking of the top ten cryptocurrencies does not show any position changes this week.
Winner and loser of the week
The current price of Bitcoin continues to have an impact on the broader market. When looking at the top 100 altcoins, almost 40 percent show a price increase on a weekly basis. The list is led by Near (NEAR) with a 35 percent price premium, followed by BitTorrent (BTT) with 26 percent. Convex Finance (CVX) also generated more than 19 percentage points in a weekly comparison. The weekly losers list is led by Radix (XRD) with a 17 percent decline. Also weak are Theta Fuel (TFUEL) with a 17 percent price decrease and Kadena (KDA) and Waves (WAVES) with a 15 percent price decrease each. About 20 percent of the top 100 altcoins will lose more than 10 percent of their value this week. Investors should keep waiting for Bitcoin to bottom out before making any major new investments in the altcoin market.
Disclaimer: The estimated prices presented on this page do not constitute purchase or sale recommendations, they are only an analyst evaluation.
The chart images were created using TradingView created.
USD / EUR exchange rate at time of publication: 0.89 euros.