Ethereum recently broke the $3,000 mark, showcasing a 4% increase in price. However, the subsequent correction has led to the possibility of a re-test of the key support at $2,860. The bullish momentum of Ethereum on higher timeframes signals that any pullbacks may be short-lived. To maintain this momentum, buyers need to hold the key support and aim to reclaim the $3,000 level. Failure to do so could invite sellers back into the market, potentially leading to a deeper correction.
XRP managed to break above the 54 cents resistance level but faced a 5.6% loss as the price fell. The key for XRP’s upward movement lies in holding above 54 cents, which could pave the way towards the next target at 68 cents. While the momentum indicators on the daily timeframe are showing a loss of bullish bias, it’s too early to predict if bears are taking control. However, if XRP fails to hold above 54 cents, sellers may dominate, leading to a potential drop to 50 cents or lower.
Similar to Ethereum, Cardano witnessed a break above 60 cents before retracing to lose this key level. Currently, Cardano is in a correction phase, with a 3% loss for the week. Sellers are currently influencing the price action, and unless buyers intervene soon, ADA could fall towards 50 cents. The correction needs to be completed before expecting new highs from Cardano. If the support level at 50 cents holds, buyers might step in to prevent further decline.
Solana experienced a correction before other major altcoins, dropping by 8.5% in a week. The downtrend started after being rejected at the $117 resistance level. Key support levels for Solana are located at $95 and $78. Despite the correction, it is unlikely for Solana to drop back to double digits after the effort to surpass $100. If buyers resurface, the correction may halt at one of these key support levels.
Binance Coin emerged as the best performer among the cryptocurrencies discussed, with a 6% price increase and a new yearly high. The bullish bias for Binance Coin needs to be supported by buyers pushing the price above $377 and solidifying it as a key support level. Sustaining above $377 could lead to further gains, potentially breaking above $400. However, failure to maintain this level could initiate a correction back towards $330 or even $300.
Each of these cryptocurrencies – Ethereum, Ripple, Cardano, Solana, and Binance Coin – present unique price actions and challenges. While maintaining bullish momentum is crucial for future growth, the influence of both buyers and sellers will determine the direction of these cryptocurrencies in the coming weeks. It is essential for investors to closely monitor key support and resistance levels to gauge potential price movements and make informed decisions in the highly volatile cryptocurrency market.