This week, we take a closer look at Ethereum, Ripple, Cardano, Binance Coin, and Dogecoin.
This past week Ethereum broke below its uptrend, which was a major bearish signal, and lost 9.4% in the process. Moreover, today, the bears dominated the charts, and Ethereum lost almost 8.5% of its valuation in less than an hour when the market suddenly crashed.
At the time of this post, bulls have managed to stop the downtrend at the $1,700 support level, but bears remain in control of the price action and may take the cryptocurrency even lower, towards $1,500. The resistance is at $2,000.
Looking ahead, it appears that the uptrend from July and August has ended, and Ethereum is entering a significant correction. This could also continue for a while, especially given that the daily MACD turned bearish this week, and it will take time for it to curve back up.
After XRP failed to turn the $0.38 resistance into support, the uptrend parabola broke, and the price soon crashed lower. In the past seven days, XRP fell by 11% and is quickly approaching the key support at $0.30. For this reason, the momentum clearly favors the sellers.
The crash today happened with increasing volume, which hints that this correction may not stop until bears take XRP to the key support. The indicators also curved down, and the bearish bias only intensified as the week progressed. The daily RSI is also quickly approaching oversold levels.
Bulls are likely to have difficulties in the coming days in stopping the assault. It appears that their best chance is at the $0.30 support level.
ADA misled most market participants due to a fake breakout at the start of this week. The price moved above the $0.55 resistance only to fall back below it a few days later, closing the past seven days with an 12.9% loss. This makes ADA one of the worst performers on our list this week after losing all of its progress in August.
The current support is found at $0.44, and the resistance is at $0.50. Considering the momentum in the market at the time of this writing, ADA seems more likely to reach the support before any chances of a rebound.
The outlook for Cardano remains negative, and the recent bearish cross on the daily MACD signals that the price may retest the lows from mid-July if the market continues this correction. Best to prepare for lower levels before considering a position.
Binance Coin (BNB)
The bulls lost momentum once BNB went over $330 and soon faced stiff resistance that turned the price action around. This led Binance Coin to close the past seven days in the red with a 13.1% loss. At the time of this post, the price is quickly falling towards the key support at $267.
The resistance at $330 remains firmly in place, and it is unlikely it will be revisited again soon. It is crucial for the bulls to stop the downtrend at $267 since losing this level may lead to a major breakdown.
Looking ahead, the bias remains bearish, and the indicators may enter oversold conditions. The price action also favors the bears, which managed to close the past three daily candles in red. When such patterns emerge, they usually spell a major turn in the market.
DOGE rallied hard earlier this week only to lose all its gains over the past seven days, it lost 3.1% of its value.
DOGE has strong support at 5 cents but may find support earlier if the market manages to reverse course. The key resistance is found at 7 cents.
The hype around Dogecoin was short-lived this week. This is common in a bear market when any rally is actually shaping up as a selling opportunity. With an imminent bearish cross on the daily MACD, it seems that DOGE will continue its descent.
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Cryptocurrency charts by TradingView.