Profit taking after the Rallye

Fundamental data

Most crypto currencies remain in a waiting pattern and continue to trade sideways. In general, markets remain positive and might just take a breeze before riding to higher levels. The positive momentum in US equities, some potential further weakness in the Dollar are other reasons, which would support the crypto space.

Currently, the negative momentum might come from the downgrade of the US by the rating agency Moody’s. The selloff currently harms investors’ sentiment in regards to the government debt and macroeconomic data might cause the some short- term selling to continue. On the other hand, US yields rose, while Bitcoin remains relatively stable.

Technical analysis:

– BTC: Bitcoin is trading at USD 103,129. The price of the token continues to remain positive, whereas last week did not end with a major breakthrough above the technical resistance zone of USD 105,000. The trend remains positive, though, and as long as equities, in particular the Nasdaq index push higher might remain this way. The current waiting pattern could indicate that higher prices might be even seen this week.

BTCUSD, monthly chart

The upside might intensify above the USD 110,000 zone causing the price to potentially push towards the USD 120,000 range.

– ETH: Ethereum is trading at USD 2,470. Similarly to Bitcoin, also the most famous Altcoin remains in a sideways waiting pattern. Before prices can push higher, the technical resistance zone needs to break. This currently sits with the 50 -moving average at USD 2,577 based on the weekly chart. 

ETHUSD, weekly chart

While the market might be ready to retrace lower for now, the general positive trend might continue to push the token higher. Any break below the support zone at USD 2,250 might indicate a bigger slide on the other hand and should be taken with caution.

– XRP: Ripple is trading at USD 2.3248. Last week, the price has failed to break above the important zone of USD 2.6000. Since the market has fallen back as well, the upside might remain limited. Instead, the important 50- moving average at around USD 2.2800 will now come into focus.

XRPUSD, daily chart

A break of that zone might add further selling pressure, which could intensify towards the psychological USD 2.0000 level. Given the recent charting pattern, though, the market looks well supported and might just remain in this sideways trend offering potential trading opportunities.

– SOL: Solana is trading at USD 165.95. The market also remains capped below the USD 180.00 resistance level. Any break higher might still take some time as currently lower prices might be seen based on the bearish candlestick pattern.

SOLUSD, weekly chart

For now, this market might remain capped and like all other tokens above could turn to lower levels initially. The pressure might ease around the USD 130.00 zone, where a strong support should be expected. The general outlook remains positive.