Since the peaks reached in late 2021 many altcoins have managed to lose several tens of percent of their value. This is not a positive sign for them. Nevertheless, the market is starting to show a recovery, which translates to the situation of some of them.
Ether on top
Recently we paid attention to the Bitcoin dominance chart. It showed that it is highly likely that altcoins will temporarily take over marketcontrol. This is what is happening and the main symptom of this very situation is the scenario that is playing out on the Ethereum chart.
Well, ETH after a period of decline and consolidation inside a symmetrical triangle, managed to reverse the trend and go up. The key area near $3,200, which historically acted as resistance, was also broken. Its retest as support helped Ether bounce even higher and reach the $3,582 level. The entire upward movement had significant momentum and allowed for returns of 42%, in just 20 days. However, there are first signs of the new trend weakening. This can be seen on the Stochastic RSI, and on the MACD. A possible relapse of the price could result in a resumption of prices near $3,200, or even a descent to $3,000. A possible denial of this scenario could push Ether as high as $4,000.
An interesting trend reversal boasts Solana. After strong declines, it constructed a falling propeller from which it managed to break out upwards. It also broke through the important resistance near $122. It is currently measuring itself against another key area, which is the area around $150. Most indicators suggest a correction. The stochastic RSI tells us about overbought, the MACD is making a downward turn and a bearish divergence is encountered on the RSI. The $122 level may be subjected to one more test. Possible further decline may take SOL even to the area of $85. Further upward movement on the other hand is primarily a chance to reach above $180.
XRP in the starting blocks?
While many leading coins have already started their rally, XRP seems to be waiting for a catalyst to take off. This could certainly be positive news from the SEC hearing. Fundamental issues definitely take precedence over technicals for this coin. Note, however, that XRP has been forming a pattern for a year now, in which it has been consolidating all along. Unlike the previously presented coins, here on the Stochastic RSI we observe oversold. For the time being we expect XRP to continue moving inside the formation and successively narrowing the price action. Possible new information from the courtroom should break this rhetoric and potentially trigger significant moves.
Cardano consolidates at resistance zone
In a recent piece on ADA we highlighted a bearish divergence. This one so far has not been played out, but for the time being we should not lose sight of it. In addition Cardano is gradually consolidating in the area that historically has been key for further price action of the coin (gray rectangle). Its breakout and upward breakout will lead to the deepening of divergence, but at the same time it will allow it to exit to safer price areas. The target may be even $1.57. In turn the dips will be a struggle to maintain the level of $1.00.