This week we take a closer look at Ethereum, Ripple, Cardano, Dogecoin and Polygon.
The overall market turned red and the price of ETH lost 15% in the past week. With support broken on the downside, Ethereum is struggling to find its footing and could head to $1,300, where the next key support is.
The news that Ethereum could be considered a stock is another blow that could intensify the current bearish momentum. As the pressure mounts, the bears seem to grow more confident.
Looking ahead, there isn’t much that can stop this sell-off. Until the current sentiment changes, the price action could lead to a retest of the lows seen in December 2022 (~$1000).
Ripple has held a small rally following the ongoing lawsuit that could see the company win against the SEC. However, it turned out to be a brief moment of excitement as those most recent gains were quickly lost and its price fell 3% this week.
The price action on this cryptocurrency is not as grim as most altcoins which are rapidly approaching their lows since late 2022. With good support at 34 cents, XRP is holding up much better than the set of the market right now.
Looking ahead, XRP appears to continue consolidating around 30 cents and may trend sideways in the coming weeks. It is essential that buyers defend the key support, as a failure there would open up an opportunity for sellers to drive the price much lower.
Unfortunately for Cardano, the past week was again a continuation of the large correction that started in mid-February. In the process, ADA lost 15% of its valuation, and this selloff only seems to be intensifying with no signs of relief.
Buyers appear to have pulled back to the 28 cent support level and may attempt to take a position there. If this level does not hold, the next key level to watch is at 24 cents.
Looking ahead and based on the RSI indicator, this latest price drop pushed Cardano into the oversold zone on the daily time frame. This may lead to a short bounce once this cryptocurrency hits the 28 cent support.
Dogecoin failed to hold its price above key support at 7 cents which has now turned into resistance. This decline pushed the price to a 21% loss last week and put DOGE among the worst performers.
With the bears in complete control of price action, a test of the next support level at 5 cents seems inevitable. It could also become an opportunity for buyers who were hoping for a better entry into the next bull market.
Looking ahead, DOGE’s outlook remains bearish.
MATIC has lost its uptrend. In the aftermath, its valuation fell 22% this week, making it the worst performer on our list. This break in the structure of the market also signals a major turning point in the evolution of prices.
With the support at $1 turned into resistance, the bulls have lost a key psychological level that gives the bears complete control of price action. This is the last thing the buyers wanted and it makes for very bearish sentiment.
Looking ahead, MATIC is on track to test the next key level of support at 75 cents. Until then, the price might also rebound as the bears might run out after such a sharp drop in a few days.
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Cryptocurrency charts by TradingView.