Opening the week at above $2.2 trillion and currently estimated at $1.92 trillion, the crypto market is back to its high volatility phase but failing to record significant hike. The actions of most cryptocurrencies contributed to the end result of the market at the intraweek activities.
The chart above shows that a good number of projects are down by some percent. One notable thing about the image is that most of the coins are down by more than 10% -hence the result.
Last week, we observed the absence of strong market fundamentals with several predictions as to how some cryptocurrencies, including BTC, will perform this year. One such projection was by El Salvador’s President, Nayib Bukele, who continues to remain bullish on Bitcoin and has predicted that the leading cryptocurrency will hit the $100,000 price mark in 2022.
This time, a bearish story shook the crypto market and was responsible the more than 5% drop in the price of most digital assets. The world’s largest cryptocurrency by market capitalization bitcoin (BTC) may have to undergo a major test after Kazakhstan is reported to be experiencing a nationwide internet blackout following civil unrest.
Recall that Kazakhstan has become the second-biggest bitcoin hash rate country behind the United States, after China announced a widespread clampdown on cryptocurrency-related activities, including crypto mining, in June 2021.
Market trends have played little to no role during the past intraweek session. Most projects during that time consolidated within the price region and previous trends of a massive surge at the end of the week were not seen. Let’s see how some coins in the top ten performed last week.
Bitcoin opened the last seven-day period at $47,290 and surged to an intraweek high of $47,580. The digital asset may close at $40,517 which suggests that the top coin lost 12% at the end of the timeframe under consideration.
BTC saw a lot of trading activity on Monday but failed to record any significant increase as selling pressure exceeded the buying pressure. Tuesday was no different as the apex coin hit an intraweek high but failed to contain the same sentiment towards the end of intraday activities.
Wednesday was another nightmare for the buyers as BTC dipped to $42,413 from $45,828 – losing 5%. Following the biggest drop, the downtrend continued as the market lacked the needed energy for a price rally. The bears had most of the spotlight as we observed that five of the past six days were marked by red candles as seen in the chart below.
As the largest coin by market cap failed to surge, fears of more bearish actions are growing, especially as the 50-day MA is slowly edging closer to the 200-day MA – hinting at an interception. Bitcoin also became oversold as a result of the massive retracement. The Relative Strength Index dropped below $30 and is in that region as of the time of writing.
Warnings of bitcoin flipping the $40k support raged on as Mike Novogratz predicted the bottom at $38k. Based on this, we may conclude that the top coin may continue to hold this level. Nonetheless, we note that the drop to $40,000 is the second in two months. There is a chance the $40k will be a tough mark to flip.
The largest alt experienced a lot of volatility during the intraweek sessions. Unfortunately, the seven-day period may end as many anticipated. Like BTC, Ether started slow and saw the most price movements midweek.
Last week, we saw ETH dip to the lowest it has attained over the past 21 days. The coin saw a low of $3,585 as it suffered the biggest dip of the period under consideration on the third day of the week as it lost 6.55%.
Ether lost 5% over last seven days as it opened at $3,827 and is about closing at $3,141. Several predictions aiming at the largest altcoin hitting $5,000 soon are getting reevaluated as the projected price uptrend is yet to begin. The cryptocurrency is currently down by more than 17%. On average, ETH lost 4% over the past four days and is currently below the 200-day MA.
Ethereum has become an oversold asset during the past intraday trading session as RSI dipped below 30. The pattern printed by the Moving Average Convergence Divergence suggests that there is no sign of recovery as the histogram illustrates the continued decrease in buying pressure.
The exchange token experienced a lot volatility over the past six days. The price retracement it saw was one that left it trading 16% lower than its opening price. Failing to pass $540, the third largest cryptocurrency was left struggling below $500 after descent.
It was intriguing to see the $500 support held throughout the first two days of the week but crumbled later. We observed that the bulls defended the mark for more than 48 hours but lost the strength to rally the market as the support broke. BNB dropped as low as $433 during that time but hit a high of $538. During the corrections, the 200-day MA came under test and was flipped, spreading panic.
Efforts to retest the Moving Average ($452) yielded results for a while but couldn’t be sustained. The third largest alt may flip $430 before the week ends as it is currently trading below $440. As with the preceding cryptocurrencies, BNB is oversold as of the time of writing.
Solana ends the past week losing 10%, making it the continuation of the downtrend on the weekly chart following a two-week increase. The coin dropped as low as $132 (the lowest since September) after bursting to $176. SOL could be considered the top loser in the top 10 as it lost more than 22% over the last six days.
The massive decrease in price saw “Ethereum Killer” lose the fifth spot in the top 10. As with BNB, the third largest altcoin also flipped crucial supports especially the 200-day MA. The SOL/USD pair is trading above the Moving Average and currently holds the level ($133) as support.
The past six days ended with the pair still under bearish dominance. This has resulted in an increase in the gap of the Moving Average Convergence Divergence (MACD). Amidst the dominance, the $130 support still holds and may be tough to break.
Having lost both the 50 and 200-day Moving average, Cardano is showing no signs of regaining the levels soon. The past week saw more intense bearish action that ensured the project dropped farther away from the highlighted mark as it lost more than 5%. ADA suffered corrections for most of the week as five of the seven days were represented by red candles.
Following the death cross that took place last month, a golden cross is not in sight as the downtrend continues. The cryptocurrency is currently down by more than 16% and is experiencing fierce sellers’ congestion that may see it hit a new intraweek low.
Kicking off the week at $1.37, the coin had no chance for a surge as it was hit by bearish actions immediately. ADA dipped to a low of $1.12 and may close the week lower than that as the bulls are nowhere to be seen.
The eighth largest coin by market cap has seen a lot of volatility lately. Ripple recorded no significant loss or gain today but surged as high as $0.77 and retraced as low as $0.72. The cryptocurrency is yet to rebound as the red candle continues to extend.
As with BTC, the above chart suggests that XRP has been in a downtrend since the start of the week as it opened trading at $0.85 and is exchanging at $0.73 as of this time. The most recent price level takes the coin a step closer to testing the first pivot support.
Regardless of the price dip, XRP is not oversold which is comforting to the bulls. Nonetheless, The Moving Average Convergence Divergence (MACD) having converged last week is hinting at more bearish action as it falls below 0 – suggesting a full blown bearish market.
Starting the past six days rather bullish, Polkadot was one of the many projects expected to experience significant hikes this week. Although not seeing notable increase on Monday, it was the only day marked green as the days following saw the alt price drop.
DOT lost its first pivot support as its price at this time shows the ninth largest coin exchanging below the mark. Losing more than 7% on Wednesday as most cryptocurrencies, a little resistance to the bearish dominance was seen the next day as it was represented by a doji.
There is hope in sight as both MACD lines descend more below 0; the boundary between a bullish and bearish asset. More fears as the 50-day MA is also taking a dip and threatening a death cross if market conditions don’t improve.
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