According to crypto analyst Filip L, Ethereum is unable to trade at lows as traders receive a stern reminder. Also, the analyst says that Cardano (ADA) has come a long way as traders have turned their backs for now. According to the analyst, Ripple (XRP) is a lighthouse in the crypto winter. We have compiled Filip L’s analysis of ETH, ADA and XRP for our readers.
“ETH, bulls see war plans”
Ethereum had too many binary paths in its history until 2021. However, it simply entered a downward trend in 2022. It’s been easy so far. However, it becomes much more difficult for both bulls and bears to determine where, when and how to trade. A good, solid and solid trading plan is essential to surviving this market momentum.
Existing tail risks are therefore crushing the ETH price. These include inflation, the dollar’s overall performance this year, and the situation in Ukraine. Besides, technical data at 55-day and 200-day SMA are limiting the upside. ETH is not in a position to go above $1,404. It will also see traders wait for lower levels around $1,000 before deciding to create some positions for a long strategy.
ETH weekly chartThe upside potential comes only if a few elements break upwards and add to the bulls’ toolbox. Because these key levels are support rather than resistance. The target is to reach this crucial level, which is around $2,695 initially. This means a 120% price increase. While this may seem overwhelming, the bulls only need to break both the 55-day and 200-day SMA by making a one-week close above. Once that’s done, there aren’t too many big technical boundaries in between. So it’s possible that it could sail smoothly for $2,695.
Is Cardano pricing in the next victim in the crypto carnage?
Cardano price action is pointing to problems and red flags across the board as the FTX fallout you follow from Cryptokoin.com is brutal. Already in the crypto winter, a lot of interest, cash and market cap burned to survive the frost. Now, the resurgence of geopolitical issues in the wake of FTX becomes too much of a problem biting the last reserves that crypto traders have parked in ADA.
The Relative Strength Index (RSI) has not been above 50 since November last year. Therefore, Cardano risks more traders going away as the sell-off continues. This constant oversold means that the ADA is losing blood fast. With trader interest waning again next week, Cardano price is likely to drop below $0.280. In that case, it will likely drop to $0.200 or $0.075 before seeing a resurgence in the RSI as buying takes over.
ADA weekly chartAs we approach the end of the year, there is still the possibility of a Christmas rally. Cardano was emerging touching the red descending trendline, which aligns with the 55-day Simple Moving Average. The best possible bullish outcome would be to break this area and take over the main level at $0.415, which is above the weekly close. Traders will fall over each other as if it were a Black Friday sale to be part of the rally. Thus, with the booming buyer-side demand, they will see the price quickly reach $0.500 in just two weeks.
“XRP can go either way”
Ripple price holds weekly gains in a very tough week. Unfortunately, the bulls were unable to extend the price action above the 200-day Simple Moving Average. So, it could not rise above $0.3973 in this process. On the downside, the bulls were eager to buy a few cents before they bounced off the red descending trendline at $0.3212.
Because of this, XRP has bled heavily like some other cryptos. However, it has become one of the highest outliers in the crypto market. Damaged confidence makes it ideal for traders to carefully select those with the best cards. XRP has a break above the 200-day SMA and an increase target of $0.4974 by the end of next week. It can therefore be seen as the best crop selection with the huge cash allocated to it.
XRP weekly chartIt is possible that the downside risk will trigger another lower leg next week. So it is held by technical rejection on the upside against the 200-day SMA. This will go hand in hand with the markets being shaken again by some geopolitical trigger.
Geopolitical risks are likely to be a major bearish trigger. This pushes XRP down. The first would be a push against the red descending trendline near $0.3000. When XRP re-enters this area, wait for a test at $0.2875 before the lows for November are printed. Definitely, that $0.2500 looks like a good candidate to catch our trigger a bounce.
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