This week, we take a closer look at Ethereum, Ripple, Polkadot, Luna, and Avalanche.
The price action in November and December felt a bit like a roller coaster with ETH touching the support at $4,000 several times before reaching $4,500 only to be pushed back again. Luckily for bulls, the key support level at $4,000 has held well on every test. So long as this remains the case, ETH has a good chance at recovery.
The performance of ETH in the past seven days was poor with a 9% drop, mostly due to the December 4th crash which set the tone for the remainder of the week. It is crucial for ETH not to close a daily candle under the key support as that would spell trouble for the bulls.
On the other hand, if we take a look at its performance against Bitcoin, this past week was one of the best for ETH. It reached 0.088 BTC, a price not seen since early 2018. For this reason, 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.
This week, XRP has finally found 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. At the time of this post, XRP is sitting at a 13.5% loss for the past seven days.
The current support gives hope of a reversal in this bearish trend. XRP bulls even attempted a break above the key resistance at $0.89 after finding support. However, the bears stood firm and pushed the price back.
Looking ahead, XRP finds itself in a range and may continue to consolidate in the next week 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 support level at $26 may provide hope of a reversal. However, the price action remains bearish and this was exacerbated by the December 4th crash. If the RSI can make a higher low as the price goes lower, then that may be the first signal that this downtrend is approaching the end.
At the time of this post, DOT looks very weak and the indicators are all bearish, including volume which has remained high as the price fell. This is not good for bulls, but the current support at $26 has much more confidence than previous levels due to the past price action where DOT found support her several times.
Considering current market conditions, Luna remains an outlier and one of the best performers in December with a 5% increase in price in the past seven days. Luna does not appear to have been affected at all by the December 4th crash, recovering in full on the same day. This was a clear sign of strength.
However, there are some concerns that its strong performance in the past weeks may come to a pause, particularly as Luna failed to break above the $78 resistance after two attempts. This is also highlighted on the RSI and MACD indicators, which are curving back down. If the cryptocurrency fails to sustain the momentum from earlier this month, then a consolidation or mild correction may take place.
At the time of this post, Luna found good support on the $65 level and so long as this holds, it can make a new attempt at breaking the key resistance and all-time high at $78.
AVAX closed the last seven days in red with a 20% decline, which was mostly due to the December 4th crash. Since then, price found good support on the $78 level which is almost half of the all-time high at $147.
There were four attempts to break above the key resistance at $95, but each of them was rejected so far. This shows that the bears will not allow AVAX to go higher in the near future and bulls are stuck in a range between $78 and $95.
Looking ahead, AVAX’s indicators remain bearish, but 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.