Table of Contents
- Long and short-term ETH holders saw gains
- If BTC’s bearish sentiment persists, ETH could find new support at $1217.22 and $1166.83
Ethereum [ETH] witnessed a drop just as it headed into the weekend. It lost the $1,300 psychological level after Bitcoin [BTC] struggled to trade above $17K. At press time, ETH was trading at $1270.69 and could continue on a downtrend throughout the weekend based on the technical analysis indicators.
If the bearish momentum persists, ETH could find new support levels at $1,217.22 and $1,166.83.
Read Ethereum’s [ETH] price prediction 2023-2024
ETH has been operating within the $1,239 – $1,378 range during September and October. An upside breakout from the range led ETH to pump by over 20%, reaching a high of $1,682.11 in early November. But the market crash forced a downtrend that led to massive price correction the last time ETH attempted a rally.
At press time, ETH faced significant resistance at the 38.2% Fib level, which also doubled as a bearish order block. Technical indicators suggested that ETH could drop further. The Relative Strength Index (RSI) moved sideways and rested on the 50-neutral level with a drop in mind. This showed that buyers’ exhaustion could give sellers more leverage.
Additionally, the On-Balance Volume (OBV) also moved sideways after forming a gentle slope upwards. It showed a lack of significant trading volumes to back buying pressure. Thus, buying pressure could be undermined. Therefore, ETH could head down and settle on new support levels at $1,217.22 and $1,166.83.
However, an intraday close above $1306.06 will invalidate the above bearish bias. In such a case, ETH could set sail northwards despite numerous obstacles toward the 100% and 78.6% Fib pocket levels.
Despite the recent bearish sentiment, ETH posted gains to its short and long-term holders. For example, the 30-day Market Value to Realized Value (MVRV) was positive from 29 November. This showed that short-term ETH holders made profits since the end of November.
Unfortunately, ETH saw a negative sentiment at the time of publication that could delay further uptrend momentum. Thus, selling pressure may build over the weekend and early next week if BTC’s sentiment remains bearish.
However, if BTC regains $17K and maintains upward momentum, ETH’s market structure will have a clear bullish direction. Therefore, ETH investors should be cautious and preferably make a move if the market direction is much clearer.
- XRP was in a bearish market structure and could drop to a 23.6% Fib level ($0.3839)
- XRP saw a decline in trading volume and active addresses in the past 24 hours
Ripple [XRP] was trading at $0.3918 and was set for a further price correction in the near term. Interestingly, the two-hour timeframe recorded a bullish Moving Average Convergence Divergence (MACD) crossover which signaled a buying opportunity.
However, the four-hour chart showed a possible bullish crossover that may not happen, given the bearish structure. If bears gain more control and Bitcoin [BTC] drops below $17K, XRP could reach the 23.6% Fib level ($0.3839).
Read XRP’s price prediction 2023-2024
Two key technical analysis indicators point towards the above bearish outlook. In particular, the Relative Strength Index (RSI) indicator dropped below the 50-neutral mark and crept sideways. This showed that buying pressure waned off, and selling pressure was steadily rising.
Furthermore, the On-balance Volume (OBV) showed a downtick indicating a drop in trading volumes. Thus, it could undermine enough buying pressure to boost bulls. Put differently, sellers could gain more leverage with the reduced trading volume and push XRP prices lower.
But a candlestick close above the 50% Fib level ($0.3962) could negate this bearish inclination. In such a case, XRP could target a new resistance level at 61.8% Fib level ($0.4017).
XRP recorded a decline in active addresses, volume, and sentiment
According to Santiment, XRP’s recorded a drop in active addresses (red) in the past 24 hours. Correspondingly, the reduction in active addresses engaged in trading led to a decline in trading volume (white). Thus, this indicated a drop in buying pressure.
Moreover, XRP’s weighted sentiment was deep in the negative territory. It showed that most analysts had a bearish outlook for the crypto asset and could send the price downwards.
However, any bullish sentiment on BTC, especially if it regains $17K and moves upwards, could lead to XRP’s price inflection to the upside. Thus, monitoring BTC’s performance and XRP’s on-chain metrics will come in handy.
- MANA formed an ascending triangle chart pattern
- A possible upside breakout target could be $0.4740 and the 38.2% Fib level ($0.5054)
Decentraland [MANA], the Metaverse-based project, recorded a bullish Moving Average Convergence Divergence (MACD) crossover on 25 November. The crossover opened buying opportunities for interested MANA investors.
Further gains could occur if MANA could manage to record a bullish breakout from its recent ascending triangle pattern. As of 2 December, MANA was trading at $0.4107. If Bitcoin [BTC] recaptures and holds the $17K level, a bullish breakout from the ascending triangle could be possible. This could put MANA on an uptrend towards $0.4740 and $0.5054.
Read Decentraland’s [MANA] price prediction 2023-2024
At press time, MANA was trading at $0.418602 and was trading 3.5% higher in the last 24 hours.
MANA forms an ascending triangle: can bulls influence an upside breakout?
MANA was already posting lower lows before the FTX implosion. However, two weeks before the FTX saga, MANA rallied, reaching a high of $0.7452. The post-market plunge caused it to break through several support levels.
The bulls found a resting zone at $0.2572, from which a successful rally was initiated on 22 November. Since the beginning of the recent rally, MANA’s price movement formed an ascending triangle – a typical bullish chart pattern.
In addition, the price formed a bullish MACD crossover, which was a buy signal for an early uptrend. Therefore, MANA will likely target $0.4740 and $0.5054 on an upside breakout.
In particular, the Relative Strength Index (RSI) also moved out of the oversold territory and was seen on a steady rise. It showed that sellers had less and less influence, and buying opportunities were increasing.
The On-Balance Volume (OBV) also increased slightly after being relatively flat for about two weeks. This indicated that buying momentum was growing as trading volume witnessed a rise. This could increase buying pressure and help the bulls make an upside breakout from the ascending triangle in a few days or weeks.
However, an intraday close below the current support at $0.3572 would negate the bullish bias described above.
MANA saw steady network growth, but …
Decentraland saw a slight increase in network growth in the last days of November. This occurred after a significant peak in network growth in mid-November.
Interestingly, network growth from MANA bottomed out in Q3, which coincided with falling prices. So the recent uptick in growth could contribute to a price recovery.
Unfortunately, another obstacle decided to impact MANA’s growth. The overall weighted sentiment was negative at the time of publication. However, it was important to note that sentiment recovered slightly from the negative territory at the time of publication.
This could indicate that sentiment was improving, although there was still a long way to go. Thus, investors should keep an eye on BTC and MANA sentiment.