Last week was rather slow for the crypto market as the two major cryptocurrencies, Bitcoin (BTC-USD) and Ethereum (ETH-USD), finished the week relatively unchanged.
However, some cryptos had a strong week, including Axie Infinity (AXS), up 11%, and Frax Share (FXS), which is up 17.4% in the last seven days.
FTT, the bankrupt FTX exchange token, also had a massive day on Friday, fueled by Twitter chatter suggesting the exchange might reissue the token and pay back creditors and depositors. FTT rallied a crazy 47% on Friday to reach a high of $1.95 before correcting lower.
Despite last week being slow in the crypto markets, this upcoming week is expected to be much stronger and volatile as there are key financial data updates this week, including the U.S. CPI numbers, which are to be released tomorrow, and the Fed interest rate decision on Wednesday.
As a follow-up to last week’s article, this piece will go over the cryptocurrencies to watch this week: Bitcoin, Ethereum, Ripple (XRP-USD), and Litecoin (LTC-USD).
Bitcoin (BTC-USD)
As mentioned above, the price of the number one cryptocurrency by market cap was almost unchanged in the past seven days. As the market dives into the fifth week of consolidating within a tight range, the analysis from last week remains intact.
As long as the price remains above the resistance at $17,000, the next resistance level to watch for is $20,000. However, if sellers regain control and manage to push the price back down below the $16,000 floor, the next support for Bitcoin will be at around $11,800.
Ethereum (ETH-USD)
Ethereum was slightly weaker than Bitcoin in the past week, as it’s down 2.6%.
As of now, Ethereum is also in a consolidation pattern, with the current resistance at $1,300 while the support level is at $1,000.
As mentioned in last week’s breakdown, the $1,000 support level is extremely important for Ethereum, as it’s a major number that has strong psychological effects on traders.
The second biggest crypto by market cap is trading at around $1,250. This is not far away from the resistance at $1,300. If there is a breakout over $1,300, the next resistance level will be at $1,400. However, if sellers regain control and drop the price below the $1,000 support, the next major support to watch for may be $700.
Ripple (XRP-USD)
Charles Hoskinson, the creator of Cardano (ADA), mentioned in an interview last week that a decision in the Ripple vs. SEC case could happen as soon as this Thursday.
As of now, these are just rumors, but it’s worth it for traders to keep a close eye on the price during this date to see whether there will be strong movements in price.
From a technical perspective, XRP is currently trading within a range between the support at $0.36 and the resistance at $0.40. Traders may wish to wait for a break above or below that consolidation area for any clues as to where the price might be heading next.
In the event of a break above that area, the next resistance should be around $0.45. However, if this consolidation phase ends up breaking lower, the next support to watch out for will be $0.34.
Litecoin (LTC-USD)
In a similar fashion to most of the crypto market, LTC is also trading within a tight consolidation range – from the $76 support level to the $80 resistance level.
Should the price remain above the $76 area, the next resistance to watch out for should be around $80. However, if sellers regain control and push the price lower, the next support area to pay attention to should be around $65.
Conclusion: A Strong Week Ahead
There is a saying in the financial market: “The longer the consolidation, the longer the move that follows.”
As of now, after several weeks of consolidation within a tight range, the markets are eager for a move. This week, with the help of the key financial data, we might get the move we are looking for.
Traders should keep an eye on the mentioned levels in the charts and watch for the data releases on Tuesday and Wednesday for a clearer direction of where prices may go.
