Sideways price action to continue?

Fundamental data

The crypto market does not offer fresh insights currently. Before the interest rate cut of the Fed last week, the market was heading higher but failed to remain at elevated levels. When the Nasdaq index started to fade, also crypto markets gave way losing their momentum towards the end last week. The worries in regards to the overheated AI sector continue to push markets lower. Chipmaker Broadcom lost 10% in value, despite their strong earnings but due to the disappointing outlook. Also shares of Oracle were trading in the red towards the end of last week. The general fatigue of investors in regards to the AI story can be seen in several markets as rallies seem to fizzle out currently.

Technical analysis:

– BTC: Bitcoin is trading at USD 90,399. From a technical perspective, the market continues to trade above the support level at USD 85,000. The long wigs to the downside might indicate that the price could still rise from here.

BTCUSD, weekly chart

On the other hand, the market has fallen back below the 50- moving average based on the chart above. This might indicate that the market could continue to proceed lower as the uptrend currently looks limited. If the Nasdaq index will weaken further, traders should expect volatile trading days ahead.

– ETH: Ethereum is trading at USD 3,117. The market continues to follow with the bearish sentiment. Similarly to Bitcoin the current weakness might continue, pulling the market lower as well.

ETHUSD, monthly chart

The general direction of Ethereum might depend on how the market will proceed at around the price level of USD 2,750. A break of that zone might indicate further losses, while a push higher from current prices might indicate that the uptrend remains intact. It is still positive that the market continues to trade above the 50- moving average, which acts as a strong support level.

– XRP: Ripple is trading at USD 2.0290 and with that remains very close to the psychological support zone of USD 2.0000. A break of that level might indicate a further slide in prices. 

XRPUSD, daily chart

Ripple also continues to trade below the 50- moving average on the shorter-term charts and hence might be prone for further profit- taking. A break of the USD 2.0000 level seems to be forming, as the market remains in a bearish triangle formation inching lower towards the mentioned zone. Prices could escalate their losses if that zone will break.
Upside momentum might only form, when the market will be able to break above USD 2.2500.

– SOL: Solana is trading at USD 133.37. The big red bearish candlesticks in recent weeks continue to harm the upside momentum and might hence cause this market to weaken further.

SOLUSD, weekly chart

A break below the USD 125.00 level might indicate further losses as this important support zone currently helps prices to stabilize. Below that area, Solana might quickly fall further and proceed towards the psychological level of USD 100.00.