The crypto market is still not calming down. Bitcoin (BTC) only ended the trading week with a slight price discount, but at the beginning of the week the BTC price again lost more of its value and is currently trading just below USD 48,000 again.
Bitcoin is still not finding its way back to its old strength. The current price correction is also causing a sustained drop in prices on the altcoin market. Various uncertainty factors at a political and economic level continue to have a negative impact on the price development on the entire crypto market. As mentioned several times recently, investors do not seem to see Bitcoin as a safe haven against escalating inflation, as they had hoped. Rather, the weakness in many technology stocks is increasingly being carried over to the crypto market. The ongoing uncertainty is reflected, among other things, in the continued strength of the dollar.
Best price development among the top 10 Altcoins: Ripple (XRP)
The price of Ripple can hold its own relatively well and generate 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 corrected sharply in the last few weeks of trading. The XRP price is currently trading below all moving average lines in the daily chart – a clear indication of weakness. As long as Ripple cannot regain the resistance at USD 0.89, the current corrective movement threatens to expand.
Bullish variant (Ripple)
Only when the bulls succeed in heaving the XRP price back above the EMA20 (red) at USD 0.89 can a decision on the direction for the coming period be expected. The red resistance zone between USD 0.94 and USD 1.01 is of particular importance. In addition to EMA50 (orange), EMA200 (blue) and MA200 (green), this area has already been a difficult hurdle to overcome several times. If the bulls manage to regain this area dynamically, a subsequent increase of up to USD 1.05 is conceivable. The supertrend is another strong technical hurdle. In addition, the upper Bollinger Band runs just above it, which is also likely to have a price-limiting effect. A price ricochet is therefore very likely from the current perspective. On the other hand, should the buyer store manage to break out of the daily closing price above USD 1.05 and subsequently also overcome the red overarching downtrend line at USD 1.10, the chart will brighten up significantly.
Then Ripple could rise between $ 1.20 and $ 1.28 towards the orange zone. Only when Ripple breaks through the high of 1.34 USD sustainably will there be further upside potential in the direction of the high of September 6th at 1.42 USD. This resistance level needs to be overcome dynamically in order to develop further trend dynamics towards USD 1.58. If there is no clear rebound to the south here either, a march through to the purple resistance zone is also conceivable. The bulls’ objective must be to strike the resistance at $ 1.74. If this price mark can subsequently also be regained without a significant setback, investors will focus on the maximum bullish price target in the form of the annual high of USD 1.97. For the time being, an increase above USD 2.00 is not expected – the Ripple chart is currently too weak.
Bearish variant (ripple)
If the XRP price slips back into the green support zone between USD 0.75 and USD 0.78 in a timely manner, a directional decision can be expected for the coming trading days. A relapse below USD 0.75 opens up further relapse potential up to USD 0.69. The lower Bollinger Band is currently running here. If this support area does not stop either, a price drop to USD 0.64 or even USD 0.60 cannot be ruled out in the medium term. This would retest the sell-off low from December 4th.
If the 23 Fibonacci retracement at USD 0.59 is also permanently abandoned, a retest of the lows from June and July 2021 at USD 0.51 is likely. Here the bulls are likely to come back on the floor again to avert the final relapse to lower prices. If this attempt fails, a sale into the blue support area between USD 0.40 and USD 0.44 is no longer excluded. Investors should watch the current situation from the sidelines for the time being and wait for a bottom to form.
Indicators (Ripple)
The RSI indicator as well as 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 the bearish picture for Ripple. Both indicators also show sell signals on a weekly basis, which reinforces the bearish picture.
Worst price development among the top 10 altcoins: Solana (SOL)
The course Solana continues to correct this week. Solana is currently threatening to give up the turquoise support area and continue its correction of the last few weeks. If there is no timely stabilization, the SOL rate threatens to expand its correction in the direction of the support at USD 150.03.
Bullish variant (Solana)
Solana has to cope with a discount this week as well. The bulls’ goal should now be to recapture the 38th Fibonacci retracement at USD 171.04 as quickly as possible in order to avert a correction widening. If the SOL price is subsequently able to buy back above USD 180.50, the area around the 50s Fibonacci retracement at USD 188.03 comes into focus. Just above it, the EMA20 (red) and the EMA50 (orange) run two important sliding resistance lines. Only when the bulls can sustainably overcome this chart area does the chart light up briefly.
A directional decision is then made in the area of the 61 Fibonacci retracement at USD 205.01. Most recently Solana ricocheted off towards the south several times. Only when this resistance is broken by the daily closing price is a subsequent rise to the resistance at USD 218.98 conceivable. Here the supertrend is currently acting as a resistance mark. If the buying side can generate enough buying pressure and dynamically break through the supertrend, a break through to the 78 Fibonacci retracement at USD 229.19 should be planned. Should the bulls regain this resist without any significant setbacks, the red resistance zone will come into focus as the target area. In addition to several highs, the upper Bollinger Band runs just below USD 240.00. At the first attempt, the SOL course is likely to fail here.
The rocky road towards the all-time high
Only when the SOL price can pass this resistance level at the daily closing price is a renewed attack towards the all-time high conceivable. For this, however, Solana needs a re-strengthening overall market. From the current chart perspective, 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 through the previous all-time high, new targets will be activated at USD 299.14 and USD 315.26.
These targets are derived from the 127 and 138 Fibonacci extensions. If Solana can stay in the USD 260 range in the medium term, a gradual increase in the direction of the maximum price target of USD 348.94 cannot be ruled out in the coming trading months. At the moment, however, investors should wait for the price correction to end before making new investments in Solana.
Bearish variant (Solana)
The bears still hold the reins. If the seller manages to cap the SOL rate below the turquoise zone at USD 169.28, the chance of a correction widening in the direction of the 23 Fibonacci retracement at USD 150.03 increases further. If Solana falls below this support at the daily closing price, a relapse to the low on October 12 at USD 138.13 is to be planned. The EMA200 (blue) is currently also running in this area. The buyer side is likely to want to initiate a countermovement here at the latest. If the entire crypto market continues to suffer from selling pressure in the coming weeks, and Solana subsequently also gives up the blue support zone on a sustained basis, the orange support zone will move directly into the focus of investors.
In particular, the low at USD 116.05 will play a key role. In addition to the low of September 21, the MA200 (green) can also be found here. In order not to cloud the chart image completely, a bottoming out is elementary here. On the other hand, if the bears are able to break through this zone sustainably, the correction should continue. A relapse back to $ 82.07 is becoming increasingly likely as a result. In the medium term, Solana could correct to the breakout zone between USD 61.05 and USD 55.93 before a bullish countermovement should start.
Indicators (Solana)
The MACD indicator as well as the RSI continue to show sell signals in the daily chart. Both indicators have an oversold status, but as long as there is no bottoming out, this can only be seen as a first indication of a bullish countermovement.
Stability of the top 10
The current training in a trading range in Bitcoin is also causing prices to fall in the majority 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) are also holding up relatively well, each losing less than one percentage point. In contrast, the outperformer of the last few weeks of trading, Terra (LUNA), showed more significant profit-taking and fell 12 percent. Only the weekly loser Solana (SOL) can still not shake off its relative weakness of the last few weeks and with a 15 percent course correction swings up to the weekly loser. The ranking of the ten largest cryptocurrencies does not show any changes in position this week.
Winner and Loser of the Week
The current pricing of Bitcoin continues to have an impact on the overall 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 list of weekly losers is led by Radix (XRD) with a 17 percent decline. Also weak are Theta Fuel (TFUEL) with a 17 percent price decline and Kadena (KDA) and Waves (WAVES) with 15 percent price decline each. Around 20 percent of the top 100 altcoins will lose more than 10 percent of their value this week. Investors should continue to wait for Bitcoin to bottom out before making any major new investments in the altcoin market.
Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.
The chart images were created using TradingView created.
USD / EUR exchange rate at the time of going to press: 0.89 euros.