Technical analysis on December 17th: ETH, XRP, ADA, DOT, MATIC

Ethereum (ETH)

ETH had a very volatile week with prices falling nearly $ 3,600 before surprisingly bouncing back above $ 4,000 yesterday. Unfortunately, at the time of writing, ETH has again lost $ 4,000, ending the last 7 days with a 7.5% decline.

The price action created both a lower low and a lower high for the week. Because of this, the trend remains bearish, and unless buyers drive the price up, there is little chance of a trend reversal. ETH found decent support at $ 3,700 and could test again soon if buyers can’t stop the downtrend. Resistance is now at $ 4,000.

The daily timeframe indicators are still going down and ETH is also down 10% versus Bitcoin, losing most of the ETH / BTC pair’s recent gains. Because of this, Bitcoin is increasing its dominance rate in the crypto market as a whole. In the near future, the bulls’ best hope is for ETH to stop the downtrend and consolidate below USD 4,000 before attempting to break above this critical level.

Source: TradingView

Ripple (XRP)

This week, XRP continues to consolidate in a narrow area between the $ 0.89 resistance and the $ 0.75 support as it lacks the strength to break out. Overall, XRP had a bad week, 6.6% less than 7 days ago.

However, some early signs suggest that this consolidation could create the conditions for a possible breakout. The daily MACD completed a bullish crossover 3 days ago and the RSI is making higher lows and higher highs. This shows optimism for the future as XRP bulls may attempt to break through another major resistance. This should set the stage for XRP to regain its $ 1 valuation.

In the future, XRP will face two challenges. The first is to break out of this range and the second in an environment where the overall market is falling (see ETH chart above). This won’t be easy, but XRP is sometimes known for being different from the market as a whole.

Source: TradingView

Cardano (ADA)

ADA lost key support last week, falling below $ 1.36 to find support at $ 1.20. Accordingly, it has fallen below the main trend line held since March 2020. As ADA’s price closes below this level, the chances of a day-to-day rebound become less likely. However, selling pressures have stopped being significant and ADA has only lost 4.9% in the past 7 days.

Currently, ADA price is consolidating in a narrow range, similar to XRP. The $ 1.36 level is now acting as resistance and a break below the critical support at $ 1.20 may push ADA towards $ 1.

In the future, it will be important for Cardano’s cryptocurrency to stop the downward trend and not lose important levels of support. If successful, ADA can attempt to recover.

Source: TradingView

Polkadot (DOT)

The DOT’s poor performance continued this week as the downtrend could not be stopped. Because of this, it posted another 7.6% loss over the past 7 days.

The current price action barely holds the USD 26 support. If DOT fails here, the next major support is at $ 20. During this downtrend, the daily RSI entered the oversold territory and quickly rebounded from there, forming a bullish divergence when the price fell. Hence, this downtrend could end soon, especially since the MACD has just made a bullish crossover in the daily timeframe.

Looking ahead, DOT could have a nice rally to stop the current downtrend. Buyers are sure to be interested in DOT as the price is 50% below its all-time high of $ 55. In such a scenario, the resistance at $ 32 is the bulls’ main challenge.

Source: TradingView

Polygon (MATIC)

The MATIC rally is over. After a very strong performance in the past, MATIC ended this week with a minus of 3.6% in the red. Furthermore, the bearish divergence appears to persist as long as the MATIC price approaches the ending point of the ascending triangle (in blue).

If this cryptocurrency does not move up and break the USD 2.20 resistance, the price may fall to the key support of USD 1.6, confirming a bearish divergence in the RSI. In addition, the daily MACD has fallen with no clear signs of reversal for the past 5 days.

The volume has also decreased since the last resistance breakout attempt. This setup puts a lot of pressure on MATIC from the bears. Looking to the future, MATIC is likely to break out of the ascending triangle next week. It is best to be prepared for this, especially if the price drops.

Source: TradingView

Here you can see the coin prices.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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