This week, we take a closer look at Ethereum, Ripple, Cardano, Pepe, and Dogecoin.
With the market in the red, Ethereum has fallen by 7.4% this week. In the process, the key level at $1,800 has turned into a resistance. This highlights a major change in the structure and puts bears in control of the price action.
The momentum has turned bearish, and a test of the key support at $1,660 appears likely in the coming week. This becomes increasingly so if Bitcoin continues with its correction.
Looking ahead, if the key support at $1,660 holds, Ethereum might maintain its macro uptrend (higher lows). If not, then bulls will be put in a very difficult position, as that would open the path for this cryptocurrency to revisit levels not seen since March 2023 (under $1,500).Chart by TradingView
Ripple’s downtrend accelerated this week and resulted in an 8% loss in valuation. With the support at 44 cents lost and turned into resistance, buyers have retreated to the 40 cents level.
Historically, it has been a critical point where the price pivoted and reversed. If buyers return, then XRP could put a stop to its correction.
Looking ahead, sellers are in charge, and the seemingly more likely scenario is for XRP’s price to fall until the 40 cents support. Once there, its reaction to this level would likely determine the short-term trend.Chart by TradingView
With the head and shoulders reversal pattern confirmed ADA fell by 7.7% this week. It seems less likely that the price will stop until it hits the support at 34 cents. This price action is somewhat similar to XRP, and buyers will likely be absent until the key support is hit.
The momentum indicators, like the MACD and RSI, are bearish and falling to lower lows. The daily RSI is under 40 and still has room until it hits the oversold area (under 30). Together with a bearish MACD, this indicates sellers may likely continue to dominate for some time.
Looking ahead, this cryptocurrency remains bearish. If buyers don’t return at the 34 cents support, then the next likely candidate will be found at 30 cents, which is also a key psychological level.Chart by TradingView
The spectacular performance from PEPE ended up with an equally spectacular crash. This meme coin crashed by 37% in the past week and by over 75% from its all-time high. Worst yet, the selling pressure has intensified in the past few days. This highlights that some holders have capitulated and taken the loss.
The Binance listing turned out as a top event, and the price has not stopped falling since. PEPE is also the worst performer on our list this week. In a way, this is not surprising, considering that the level of FOMO and hype achieved peak irrationality around that period.
Looking ahead, PEPE has support at $0.0000010. However, any support for this meme coin is fragile, and considering its supply, it would not be surprising to see it crash by over 90%. This is even more likely if the overall market remains bearish.A43FE1_ETHUSDT_2023-05-12_14-24-32" width="1813" height="803"> Chart by TradingView
With Dogecoin being completely overshadowed by PEPE, this meme coin did not find any buyers, and its price has fallen by 10.5% in the past seven days.
Since the momentum favors sellers, the daily RSI is approaching fast the oversold area at 30 points. This could provide buyers with an opportunity to stop the downtrend at the key support level. The current resistance is at 7.5 cents.
Looking ahead, a test of the key support appears imminent. On the weekly timeframe, the price action in 2023 shows a flat trend, and DOGE has failed to gather enough strength to enter into an uptrend.Chart by TradingView