As Ethereum fell by 3% this week, concerns have risen among buyers who are struggling to defend the key support at $3,500. The past five weekly candles closed with a lower low, indicating a clear downtrend for the second-largest cryptocurrency. In order to reverse this trend, ETH must move above $3,700 and challenge the key resistance at $4,000. If buyers fail to defend the support at $3,500, Ethereum could potentially drop towards $3,000 in the near future.
Similarly, Ripple (XRP) also fell by 2.7% this week, with the price action showing indecision from bears due to decreasing volume on the sell side. While XRP managed to hold above 46 cents and move sideways on the daily chart, bulls might aim to challenge the resistance at 54 cents later on. The cryptocurrency could be consolidating under 50 cents before making another attempt to break higher, with hopes of putting XRP back on an uptrend.
On a positive note, Cardano (ADA) had a much better week after its price increased by 4.8%, with the key support at 37 cents holding well. This allowed buyers to return on the offensive, and as long as the key support remains intact, the correction for ADA might be over. Looking ahead, ADA must maintain its bullish momentum and aim to challenge the resistance at 46 cents next.
Dogecoin (DOGE) faced difficulties last week after breaking under the 13.5 cents support, but managed to move sideways this week. With the current support at 10 cents and low volatility, sellers have lost interest for now. However, if buyers do not push DOGE in an uptrend, a test at the support level may follow. This presents an opportunity for buyers to take control of the price action and potentially reverse the bearish trend.
Polkadot (DOT) showed a promising recovery after bouncing off the $5.3 key support and increasing by 10% this week, making it the best performer on the list. The biggest challenge for bulls is breaking the key resistance at $6.7 to regain full control over the cryptocurrency. Looking ahead, Polkadot indicates potential for a sustained reversal in the near future.
This week’s performance of top cryptocurrencies like Ethereum, Ripple, Cardano, Dogecoin, and Polkadot provides valuable insights into the market trends and investor sentiments. While some cryptocurrencies are facing challenges in defending key supports and reversing downtrends, others are showing signs of recovery and bullish momentum. It is important for investors to closely monitor these developments and adapt their strategies accordingly in the volatile cryptocurrency market.
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