The past week has brought bearish waves for the larger crypto market as the price of the largest cryptocurrency has dropped almost 30 percent in the past ten days as it visited the region near $25,000 for the first time since the end of 2020. So, what to expect this week? Here are analyst Varuni Trivedi’s comments for Bitcoin and major altcoin projects XRP, SOL, MKR and XMR…
What to expect for Bitcoin?
On May 12, Bitcoin dropped to $25,400 and was sold for 6 percent of the actual price ($23,960) as Glassnode highlighted. The realized price represents the average cost basis of all BTCs and was last visited briefly in March 2020. The realized price has historically been a strong support for Bitcoin and a recovery from it could lead to short-term gains. However, analysts believe that the price is not expected to see parabolic gains anytime soon.
Bitcoin’s price dropped as low as $25,800 last week, but pressure from the bulls provided a short-term recovery to the sub-$29,000 region. BTC’s recovery above the $28,200 support on May 13 pushed BTC higher over the next few days. According to the analyst, if the bulls can overcome the selling pressure in the coming days and the price of BTC can rise above $32,500, the same could provide positive market momentum.
First altcoin to review: XRP
XRP rallied close to 9 percent on Friday, after the 7.44 percent loss recorded in the altcoin on Thursday. survived. After breaking the $0.380 level, the altcoin saw a significant rise with Friday’s SEC-Ripple court date, as we reported on Cryptokoin.com. While the long-term key technical indicators for XRP continue to trend bearish, the progress in the SEC and Ripple case has sparked a bullish sentiment among XRP investors. Although XRP is down 23 percent on the weekly chart, it is slightly bullish at the time of writing.
XRP’s recovery above the $0.45 mark could further aid the bullish momentum. In the short term, prices could see an upside if the bulls can push prices above $0.48. However, volatility will continue to rule the market.
Any bullish prospects in Solana?
Amid the larger market bounce, Solana has gained over 18% in market capitalization in the last 24 hours and was trading at $58.68. SOL had a steep decline as its price dropped to $37 on May 12. Over the past four days, SOL’s price has exhibited higher lows that are bullish; however, trading volumes remained low as investors remained cautious. The altcoin’s recovery above $44 helped the positive price momentum. Looking forward, a recovery above $62 will be the key to SOL price recovery.
The sudden buying pressure helped the SOL regain the psychological $50 level as support. As the market enters a short-term recovery, buying pressure from the bulls could push the token higher as technical indicators turn bullish.
Privacy altcoin XMR gains momentum
Privacy tokens have generally been bullish in response to larger market selloffs. At the time of writing, Monero is trading on the green board on a daily basis, although it has dropped close to 20 percent on a weekly basis. XMR held the psychological support at $145 which has helped the coin rise over the past few days. The RSI for XMR has rebounded from the oversold zone, highlighting the buyers gaining momentum.
Although RSI’s uptrend supported the positive market momentum, sellers continued to dominate buyers. “In the short-term, a recovery above the $200 resistance will be crucial for XMR,” he said. If the market turns bearish again, XMR could drop back into the $145 zone.
DeFi token MKR offset losses
Defi token MKR was one of the top performing altcoins last week. Amid high selling pressure in the larger market, Maker Protocol’s MKR token has recovered from last week’s losses as the price climbed above $1,500. MKR had reversed its losses in the first week of May. With MKR’s recovery above $1500, the selling pressure may ease, leading to short-term losses.
In the short term, if the bulls can push the price of MKR above the $1650 level, the same could help MKR’s positive price momentum. However, the bearish divergence could push the price back towards the $1400 support.
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