This week, we take a closer look at Ethereum, Ripple, Cardano, Solana, and Ethereum Classic.
After a major rally, Ethereum seems to have found a local top above $1700, which has so far acted as strong resistance. The price failed to break above this level and is down 3.4% over the past seven days. Key support is at $1,400.
Despite the continued pullback, Ethereum still had a very strong performance from the bottom in June. Even if the price breaks down to key support, the expectation is that buyers will return to the market and try to break above $1,700. Key support at $1,400 can act as a reversal point to trigger the next leg for the cryptocurrency.
Indicators are showing some weakness right now on the daily time frame, but the sellers are not very convincing. This indicates that buyers may come back in force to take ETH above the current resistance and even towards $2,000.
Ripple failed to break the key resistance at $0.38 despite several attempts. There was a huge wick on July 30 that broke this critical level, but the bears quickly pushed it down. For this reason, the price for XRP has remained relatively stable over the past seven days with only an increase of 1.4%.
While the indices remain bullish, the volume does not bring enough confidence that buyers will be able to break free from this range. With the weekend approaching, we are unlikely to see breakouts unless the market leaders (BTC and ETH) attempt a major rally.
Looking ahead, XRP fans will likely have to accept more sideways price action until a clean clear takes place that turns key resistance at $0.38 into support. Until then, XRP may continue to move within this large channel between $0.38 and $0.30.
Cardano continues to struggle below the $0.55 resistance. Multiple attempts have failed to trigger a successful breakout and this has kept the price relatively stable below the major level for the past seven days. Support levels remain at $0.50 and $0.45.
Looking at the price action, we can see that ADA has managed to make higher highs and higher lows, which places the price in a clear uptrend. Hence, another battle between bulls and bears in the coming days at key resistance seems likely.
Although volume is not heavy right now, buyers may attempt another breakout next week. Indicators such as MACD and RSI remain bullish despite the latest pullback. This could build into a strong upside momentum if buyers remain interested.
Finally there is good news for Solana. After suffering a market downturn due to the latest exploitation of some Solana-based wallets, the price managed to find support at $40 and avoid a breakdown below the ascending triangle. However, over the past seven days, SOL has lost another 6% of its valuation.
It is critical for the cryptocurrency to break above this ascending triangle as there are not so many days left to do so. If it succeeds, then its price will likely enter a much-needed rally to bring back attention and buyers. Any breakdown from key support at $44 will likely take Solana back to support at $35.
Looking ahead, expect to see volatility increase for Solana as he nears the top of this formation. Counting the number of days left inside the triangle, we can see that the SOL has about another week inside the triangle before a major break becomes very likely.
Ethereum Classic (ETC)
With Ethereum expected to go Proof of Stake in September, there is a lot of speculation about what will happen to all those miners currently mining ETH. Vitalik, the founder of Ethereum, recently declare yourself (July 21) that one option could well be to move to Ethereum Classic.
After Vitalik’s statement, the price of ETC jumped from $25 to $45. Soon after, the cryptocurrency began to slide, and in the past seven days, ETC has lost 10% of its valuation. However, the price found good support at $34, which could act as a pivot towards key resistance at $48.
Looking ahead, with the merger looming for Ethereum, proof-of-work networks like ETC are expected to perform quite well as attention shifts to alternatives. Furthermore, ETC broke its huge downtrend set in May 2021. This is a significant change in price action and gives a strong bullish bias.
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