The last few days have been particularly interesting for the cryptocurrency market, notably the victory of Ripple Labs (XRP) in the face of SECThis enabled many of the altcoins recently described as security tokens, such as SOL, MATIC, AVAX, ATOM and many others, to post very handsome gains. However, as the week drew to a close, resellers resurfaced, pushing the entire market to lower technical thresholds. With volatility the order of the day, what can we expect from the market over the coming weeks? Without further ado, let’s head over to TradingView.
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A big step for XRP, a small step for capitalization
Since last Sunday, the market has managed to break through the resistance we mentioned at $1,160 billion. The challenge now lies in the market’s ability to hold above this technical threshold, bounce back and head for the next resistance level at $1,244 billion.
As we saw some time ago, the market had attempted a weaker breakout, which failed to flip resistance as support. So, has the moment finally arrived for cryptocurrency capitalization? That’s what we’ll be watching closely over the next few days, in the hope that it really is. If buyers fail to hold on to the current technical threshold, then we’ll probably see the $1,063 billion again.
Smaller-cap cryptocurrencies benefit from the rise
At present, it appears that altcoins have managed to break free from the pivot within the range in which capitalization has been evolving for many months. This is a rather interesting sign, pointing to a continuation of the uptrend over the coming weeks. However, capitalization still faces further resistance at $375 billion, before it can return to the upper boundary at $405 billion.
Over the next few weeks, therefore, the key will lie in capitalization’s ability to break out of the red zone, enabling altcoins to extend their rise and seek out the technical level of $405 billion. However, a re-entry below the pivot will be a bearish sign, prompting altcoins to return to the lower range boundary and revisit previous lows.
The king of cryptocurrencies in a rather favourable situation
It’s been a while since we’ve had a chance to take a look at the cryptocurrency king. There’s little to report, as momentum is still bullish on a daily basis. After closing in on the 53% resistance zone, the price briefly fell back to the 50% technical zone.
As long as this technical level is maintained, then the bias to be had on bitcoin dominance is rather bullish. However, if dominance falls back below 50%, it’s quite possible that the price will return to the previous technical zone (shown in blue), giving altcoins and Ethereum a window of opportunity to move higher.
A technical opportunity for Ethereum?
For ether, it’s fair to say that the situation is a little better than last week, since the current low is now higher than the previous low, especially as a new high has been put in place, leading us to expect an upward trend reversal.
From now on, Ethereum’s objective is simple: to break out of the technical zone (shown in red), enabling altcoins to enter a powerful uptrend, with a first technical target corresponding to the oblique resistance shown in red. However, it’s now that Ethereum will have to show its buying strength, as a bullish failure would result in a move below 0.06 BTC.
DeFI cryptocurrencies in top form?
For decentralized finance altcoins, the sector is clearly benefiting from XRP’s victory, as the capitalization has managed to break free of the technical resistance zone at $41 billion. From now on, let’s keep a close eye on this zone, hoping that the capitalization will flip this technical threshold as support in order to rebound towards $47 billion. If it fails to do so, and re-enters the previous resistance, there’s a good chance that the share price will return to the $35 billion mark. For the time being, the bias is bullish.
Here we are at the end of this analysis of the crypto market, the famous Weekend Crypto Point. It’s clear that XRP’s victory has benefited the entire market, especially Ethereum in view of Bitcoin’s slight loss of dominance and ether’s gain against the king of cryptocurrencies. This trend, which has been underway for a few days now, will need to be sustained if altcoins are to rise in the long term. For the time being, the upward momentum is still fragile and not assured for the weeks to come. So, the hypothetical fall of bitcoin’s dominance below 48% could be very good news indeed.
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