At last, following the six weeks that the crypto market hardly moved, traders and investors finally got the movement they were looking for.
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Bitcoin (BTC-USD), the biggest crypto by market cap, rose 8% in the last seven days, while Ethereum stole the show by moving up 20% over the past week. The rest of the major Layer 1 cryptocurrencies also had a strong week, with Solana (SOL) climbing 15%, Cardano (ADA) rising 15%, and PolkaDot (DOT) up 12%, just to name a few.
As a follow-up to last week’s article, this piece will go over the cryptocurrencies to watch this week: Bitcoin, Ethereum (ETH-USD), Ripple (XRP-USD), Litecoin (LTC-USD), as well as a breakdown of Elon Musk’s favorite: Dogecoin (Doge).
Bitcoin (BTC-USD)
After spending the better part of October fluctuating within a tight range, Bitcoin managed to break above the daily trend line mentioned in last week’s market breakdown.
As of now, Bitcoin is trading at around $20,600, which is a minor resistance level that correlates with the 100-day moving average (yellow line on the chart). In the event of a continuation of this bullish move, the next major resistance will be at $22,000. However, if this recent pump in price turns out to be just another fake out, the major support will remain at $18,500.
In other Bitcoin news, Bitcoin miner Core Scientific (NASDAQ: CORZ) has announced that it could declare bankruptcy caused by the decrease in Bitcoin’s price as well as an increase in electricity costs.
Ethereum (ETH-USD)
Ethereum had the best week since the long-awaited merge, rallying an astonishing 20% in the last seven days.
Following the break above the flag formation mentioned last week, Ethereum managed to pass above the key resistance level at $1,500. As of now, if buyers keep on pushing higher above the 200-day moving average (white line on the chart), the next resistance level will be at $2,000. However, if the sellers regain control, the key level at $1,500 should now act as support.
Ripple (XRP-USD)
Compared to most of the major cryptocurrencies, XRP was weak this week, as it was up only 0.5%. This correlates with the fact that for the last few weeks, XRP has seemed to decouple from the rest of the crypto market and moves mostly according to speculation regarding the upcoming trial decision, which is anticipated during the first quarter of next year.
It’s also worth mentioning that for the first time in history, Ripple’s XRP holdings have gone below 50% of the total supply in circulation, which makes XRP much more decentralized.
As of now, the analysis from last week stays pretty much the same. XRP is now trading at around $0.46, hovering just above support. In the event of a continuation higher, the next resistance level remains at $0.55. However, if the support breaks, the next possible area to watch for is $0.38.
Litecoin (LTC-USD)
Litecoin is up by 9% in the past seven days, aligned with the bullish momentum seen across the crypto market.
LTC moved exactly to the resistance level covered last week at $57 and is now consolidating slightly below, at $55. If there is a breakout above this level, the next resistance to watch for is at $63, which correlates with the 200-day moving average (white line on the chart). However, if the price retraces from here, the next support to watch is $50.
Dogecoin (DOGE-USD)
Dogecoin has been strongly associated with the world’s richest man Elon Musk. The token became somewhat of a sentiment indicator for Elon’s activity, so it’s not surprising that after the Twitter acquisition was finally completed a few days ago, Doge went on a parabolic move upwards. This made it the biggest winner of the week with an unbelievable 117% rise in price.
Doge is now trading at around $0.12, making this the first time that the price has broken above $0.10 since May this year. As clearly seen on the chart, this area acts as a strong resistance, where previous sellers came in and pushed the price down lower. If the price manages to break and close above the level, the next resistance to watch is $0.17. However, if the sellers push lower from here, the next area of support will be $0.10.
Conclusion: A Big Week ahead for the Market
This will be a very important week for all financial markets as on Wednesday, November 3, the FED will announce its rate decision. For the time being, the majority of analysts believe they will raise the rates by 0.75%. All eyes will be on this decision to determine whether the bullish momentum seen across high-risk assets will continue or if it was just a “bear market rally” before another move south.
