The weekend, which started with December 23, passed with sideways movements due to the lack of volume. The new week starts with standalone Litecoin and LUNC rallies. In this article, let’s take a look at technical analysis for BTC, DOT, SOL, and ADA to analyze price movements during the week.
Polkadot (DOT) price in a bearish trend
Polkadot (DOT) price is currently down around 20% in the last 30 days. On December 25, it was at the gates of the previous trading range that emerged in 2020. It is currently trading at $4.42. As the price steps on the downside, the volume indicator is showing a tapering outlook after a major bearish influx arrived in the market during the breakout of the first resistance on Dec. 16.
Also, the volume data shows that investors are still not interested in the discounted DOT. The next bearish target is the liquidity levels between $4 and $2.60. The DOT was last traded at these levels in December 2020. A year later, it hit an all-time high of $54 with 10X.
Techniques show little evidence to support a countertrend increase. Therefore, the prospect of an early bull in the coming days remains weak. On the other hand, the decline thesis may also be invalid. However, the bulls will need to break through the initial resistance and consolidate above the current high of $4.65. By doing so, DOT price could now form a countertrend rally towards $5. If the specifications had worked out in the bull’s favor, the DOT price would have increased by 12% from the current market cap.
Solana price faces resistance
SOL is currently in a strong downtrend as it has dropped 20% since the beginning of the month. On Dec. 25, the bulls failed to reach the $11 resistance. The 8-day exponential moving average is currently acting as resistance. The dominance of bears could activate an attempt to sweep bottoms targeting $10.74.
Solana price is currently trading around $11. It spends 5% above the lowest level of the year. Should the liquidity zone break, bulls will have to rely on the support levels created in 2021 during SOL’s infamous 10x bull run. Key levels will be $9 and potentially $7.80. This scenario from analyst Montpeirous suggests a drop of up to 30% from Solana’s current market cap.
Right now SOL price needs to capture at least half of the previous weekly range around $13 to create more uptrend opportunities. A break from this level allows SOL to challenge the December high of $14.96. In such a case, SOL will gain 30% in value from current levels.
Cardano (ADA) price continues to decline
Cardano continues to step on the downside as it has dropped 20% since the beginning of the month. The middle zone of $0.20 is acting as resistance for the bulls in the market. The weekly low is at $0.246 and it is minutes away from breaking.
Cardano price is currently trading at $0.256, just above the 0.246 low. On December 23, the bulls reconnected with the 8 EMA after descending to the mid-$0.20 zone.
Given these factors, the classic technical analysis pattern was the catalyst that the bears in the market wanted to add to their positions. The next bearish target zone is $0.228, 9% above ADA’s current market cap. The target zone is a level of liquidity that has remained unlabeled since Cardano was first established in January 2021 during its 10x bull run.
The bulls will need to gain some serious momentum to eliminate the bearish potential. A break above $0.265 will catalyze a rise to the other side of the previous trading range where the 21-day simple moving average hovers at $0.28. If the bulls are successful, Cardano price is suggesting a 10% move.
DOT, SOL and ADA are down, so what’s up with Bitcoin?
Twitter analyst Caleb Franzen shared his thoughts on Bitcoin’s potential future trajectory. The analyst is of the opinion that Bitcoin is currently on a downtrend towards the $13,900 level and could potentially drop to $11,400.
Franzen also provided a chart of Bitcoin price action. Here it circled a zone based on recent BTC drops. He also stated that he believes where Bitcoin is going right now.
The analyst relies on this target due to the monthly close in December 2017, the peak of the previous cycle. Additionally, this level has acted as a resistance for further gains in 2019 at exactly $13.9k.
However, not all analysts agree with Franzen. In his analysis over the weekend, renowned analyst Michael van de Poppe reaffirmed the possibility of a rise to around $17,500 if current levels are maintained. Price predictions of other analysts cryptocoin.comWe have included it in this article.