Crypto outlook | the positive trend continues

Fundamental data:

Crypto markets continue to trade highly volatile. After Bitcoins test of USD 100k a quick correction led to further momentum as the FOMO trade might still be ongoing. Traders who missed the big push to the upside could now face difficult times ahead as price swings remain wild. The general mood seems mixed and as the Christmas season approaches, profit taking might be considered by market participants.

Technical analysis:

– BTC: Bitcoin is trading at USD 99,445 and had successfully tested the USD 100,000 level. Whether further upside will be seen might depend on the general risk sentiment. As more people continue to talk about the crypto space now, the so-called FOMO trade might be in. Traders hence are afraid that they “missed out” on the big move, which could also cause further profit taking and lead to the market heading lower.

As the market is trading at high levels another push to the downside might just be around the corner. Technical indicators point to overbought levels. This could point to a correction at the import psychological resistance zone.

– ETH: Ethereum is trading at USD 3,990.00. Based on the monthly chart below, the market has successfully broken the technical resistance level at USD 3,750.00.

This might now indicate further momentum towards the next technical resistance zone at USD 4,800.00 where the all- time- high from November 2021 can be found. The general positive sentiment as well as institutional investments into the ETF space might support the upside. With the test of the USD 4,000.00 area last week the upside might now be open.

– XRP: Ripple is trading at USD 2.3900, with the rally in this altcoin showing no signs of slowing down as the market continues to climb. However, after testing recent highs, a potential correction may be on the horizon.

The parallel trendlines based on historic extreme highs and lows could indicate that traders should prepare for further downside risk again. Will this time everything be different? Any correction to lower levels should be factored in at current high levels. A re- test of the USD 1.6000 zone or even lower might be seen.

– SOL: Solana is trading at USD 236.54. After the successful breakout of the USD 200.00 price level upside momentum might still continue as long-term charts suggest. However, based on shorter term price action based on the daily chart the market seems limited with further positive momentum. Since prices remain in a sideways pattern a retest of the previously mentioned breakout area might be on the cards, first.

Then, at around the USD 200.00 area a potential fresh run to higher levels might be seen. This could also depend on the momentum of the Dollar. Should the Greenback run to higher levels in general, potential falling prices could be seen as well.

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