The recent decline in Bitcoin’s price, which occurred at a critical support level, sent ripples through the entire cryptocurrency market. This sell-off was largely driven by investor reactions to the unexpectedly low US Consumer Price Index (CPI) figures.
In this weekly recap, we dive into the performance of the top four cryptocurrencies – Bitcoin, Ethereum, SOL and XRP – and explore their potential movements in the coming week.
Bitcoin (BTC) Weekly Recap
Over the past week, Bitcoin’s price has dropped by more than 5%, as investors moved to cash out. The market initially saw a slight uptick following the release of inflation data, but this was quickly reversed due to profit-taking activities.
This sell-off caused Bitcoin to lose its crucial support at $60,000, bringing its price down to $58,408 at the time of writing. Bitcoin is now attempting to rebound from the $58,200 support level, being traded at $58,195 BTC/USDT on Gate.io, which could pave the way for a recovery to reclaim the $60,000 support.
However, if Bitcoin fails to hold this level and the downtrend persists, the cryptocurrency could drop further to around $57,000. The next significant support is found at $54,500, and a test of this level would challenge the current bullish outlook.
Ethereum (ETH) Weekly Recap
Ethereum’s price has struggled to maintain its upward momentum, increasing by 11.75% to a price level of $2,560 ETH/USDT. Despite two attempts to break past the $2,690 resistance level over the past week, Ethereum has been unable to close above it.
The possibility of a price pullback in Ethereum remains, though it is expected to stay above $2,400. The next major support level is at $2,340, but Ethereum could remain close to the $2,690 resistance if market conditions allow.
Should bearish sentiment prevail, however, Ethereum might retest the $2,344 support, which would undermine the bullish case for the cryptocurrency.
XRP Weekly Recap
Unlike Bitcoin and Ethereum, XRP has been forging its own path in the market. With XRP/USDT currently being traded at $0.570, it has lost support at the 38.2% Fibonacci Retracement line, which was at $0.587.
XRP now faces the possibility of a decline to the 23.6% Fibonacci line at $0.524, a level often referred to as the bear market support floor. This support could potentially halt further declines and assist XRP in staging a recovery.
However, if XRP slips below this level, it would indicate strong bearish pressure. In such a scenario, XRP could fall to $0.500 or lower, effectively nullifying any near-term recovery prospects.
This wraps up the weekly analysis of Bitcoin, Ethereum, and XRP. Investors should keep an eye on these critical support levels and market cues to gauge the potential direction of these leading cryptocurrencies in the coming week.
Solana (SOL) recap
Solana (SOL) has experienced a mixed performance over the past week, reflecting broader trends in the cryptocurrency market. Although Solana saw a modest 1.3% increase in the last 24 hours, it has faced an 8.8% decline over the week, and a more substantial 12.1% drop over the past two weeks. This performance is in line with the general market correction, where major cryptocurrencies have faced downward pressure.
Currently trading around $142, Solana has been hovering near key support levels. Analysts are watching closely as the price nears critical thresholds like $160.96, which could determine the direction of the next move. If Solana fails to hold this support, the next levels to watch are $166.37 and $169.91. On the upside, resistance levels at $178.86 and $184.27 could be potential targets if the market sentiment turns positive.
Despite the recent downturn, the long-term outlook for Solana remains cautiously optimistic. The network’s Total Value Locked (TVL) in decentralized finance (DeFi) has been showing signs of recovery, albeit still below its 2022 highs. Additionally, Solana’s growing DeFi ecosystem and the potential approval of a Solana ETF could serve as significant catalysts for future growth. However, investors should be mindful of ongoing volatility and potential regulatory challenges that could impact the market.
Overall, while the short-term outlook for Solana shows some vulnerability, the network’s robust development and strategic partnerships continue to bolster its long-term prospects. As always, market participants should remain vigilant and consider both technical indicators and broader market trends when making investment decisions.
Final Words
This past week has been challenging for the cryptocurrency market, with Bitcoin (BTC) experiencing a significant 5% decline, slipping below the critical $60,000 support level. Ethereum (ETH) also struggled to maintain momentum, closing at $2,618 despite attempts to breach the $2,681 resistance. XRP followed a different trajectory, losing support at $0.587 and facing the risk of further declines to the $0.524 level.
Meanwhile, Solana (SOL) faced an 8.8% drop over the week, reflecting broader market corrections, though its long-term prospects remain cautiously optimistic due to ongoing network developments and potential ETF approvals. As the market remains volatile, key support levels and broader market trends will be crucial for navigating the coming weeks
