Downside momentum might gear up steam

Fundamental Data

The positive sentiment in the crypto market has been fading. The Dollar has been gearing up steam throughout last week and this pressure now weighs on most markets, which also includes the precious metals sector.

Tokens behave differently, though. Ripple remained relatively stable as a market structure bill, which had passed a Senate committee initially helped with positive sentiment. If the Clarity Act can pass Congress, deeper institutional money might flow into XRP products.

While stock markets started to move lower towards the end of last week, profit taking can be also observed in the crypto space. As uncertainty keeps rising traders seem to liquidate their positions. As the price of Gold closed last week in the red also Bitcoin ended lower.

Technical Analysis

BTC – Bitcoin is trading at USD 78,386. The price of this coin fell back below the recent resistance zone and this might mean that Bitcoin could be in trouble for now. A stronger Dollar, the sliding risk sentiment in equities all don’t help for now.

BTCUSD weekly chart

Bitcoin currently trades between two important zones. If the technical resistance area of USD 81,500 remains solid the price could fall further. A break below the USD 75,000 level would mean that the bearish sentiment might then even increase further. The general market sentiment remains key here. If equities continue to fall also the crypto market might face difficult trading days ahead.

ETH – Ethereum is currently trading at USD 2,191. The price of this token keeps falling as well as the market sentiment changed last week. The daily chart below shows that ETH broke the 50- moving average zone, which has also acted as a support level in the past. If the price continue to stay under that level the bearish sentiment might continue to increase.

ETHUSD daily chart

On the flipside the price remains on top of the rising support level, which can be found in blue color. If also this level breaks, traders should prepare for more downside price action. The psychological USD 2,000 price level might then be in reach soon.

XRP – Ripple is currently trading at USD 1.4199. Ripple started pushing higher last week, when the news in regards to the “Digital Asset Market Clarity Act” had been advanced by the Banking Committee of the Senate.

XRPUSD daily chart

Based on the charting pattern above the market continues to trade in a sideways pattern. The upside remains limited at USD 1.5000 and the support zone can be found at USD 1.3000. The daily chart also shows that the 50- moving average zone between that range remains sideways, indicating that no breakout can be observed currently. Positive news might act as guidance and also a rise in general market sentiment will be needed in order to push XRP out of that range.

SOL – Solana is currently trading at USD 86.66. After an initial attempt to rise further the market has been moving back towards lower levels. The sideways pattern might now indicate that the bearish sentiment has stopped but on the other hand also no upside momentum can be found.

SOLUSD monthly chart

If the market breaks the USD 80.00 level a bigger slide in prices might be on the cards. The negative sentiment might also cause the token to fall again. Solana has been more vulnerable to losses as compared to the other tokens observed above.