Top Four Cryptocurrencies to Watch This Week (Dec. 26)
During the previous week, the price of bitcoin and other cryptocurrencies remained largely steady. The significant drop in trading volume is what has caused the value to remain stable. The fact that most investors are preparing for the holidays is one reason for this, along with the celebrations.
However, there were a few instances where these assets displayed notable volatility. One such instance occurred on Tuesday when the global cryptocurrency market cap fell to a low of $790 billion. The week started with valuations at $812 billion, it rebounded to reach a high of $818 billion after dipping to the low.
One look at the sector’s chart, we can see that it spent the majority of the week over $810 billion. It maintained this stance until the end of the week and closed below the highlighted value. We see evidence of the stability in value in the image below.
We saw a striking resemblance between a stablecoin’s volatility and that of significant cryptocurrencies. With such conclusion, many may say there were no positive fundamentals during the period under consideration.
This is not true as several bullish news made the rounds. For instance, a Nigerian poll opened the intraweek session. It came to the conclusion that despite official restrictions, people wanted more Bitcoin.
A new regulation in Brazil now acknowledges bitcoin as a legitimate form of payment, which is further good news. In order to exploit cryptocurrencies as a vehicle for international trade, Russia also intends to legitimize them. All of this encouraging news failed to affect prices.
At the time of writing, the market is still grappling with the effect of the low trading volume. Will it persist throughout the week?
Top Five Cryptocurrencies to Watch
1. Bitcoin (BTC)
The previous week was among those in which it appeared like the cryptocurrency market was on vacation. The lack of volatility was the reason of this. The first two days of the week, however, saw significant price changes.
For instance, it started the first intraday session at $16,744 and fell to a low of $16,293 as a result of intense selling pressure. Although there was some improvement, the asset still finished down by over 2%.
The highest weekly increase in Bitcoin occurred the following day. The coin made an attempt at the $17k resistance for the first time in more than four days. It had a brief period of prosperity because its high was $17,034.
Prior to the end of the intraday session, it lost the record, closing at $16,900. Nevertheless, it gained roughly 3% at the closing. There were no noteworthy actions following these important occasions.
A look at indicators tells what to expect over the next five days. The first on the list is the Moving Average Convergence Divergence. Due to price movement following a negative divergence on Sunday, the 12-day EMA maintained its downward trend on Monday.
On Tuesday, a rebound began as a result of the improvement in worth. Two days ago, the 12-day and 26-day EMAs touched, pointing to an impending bullish divergence. We can infer from this interpretation that BTC may see huge price gains.
However, the low trading volume over the last 40 hours is telling a different story. We may see BTC hold on to the $16k support. With the new year celebration in view, we may expect a repeat of the previous week’s events.
2. Ethereum (ETH)
Like the majority of cryptocurrencies, Ethereum experienced similar events. On the weekly, it may be one of the bullish assets because it shows more volatility. However, a poor start to the previous week left many people fearing further price declines.
It began trading on Monday at $1,183 and tried to break the $1,200 resistance, but it experienced severe rejection at $1,194, and it failed. It fell to a low of $1,150 before closing only a bit higher. It consequently failed to record any significant price change.
The following day, though, we spotted the week’s longest green candle, which signaled a change. It tested $1.2k once more after starting at $1,167. This time, it reversed and reached a high of $1,230 before quickly retracing, but maintaining the record.
It gained more than 4% as it closed. On Thursday, ETH fell below the highlighted level and there was noticeably more volatility than usual. However, the bulls countered with a surge to $1,236, the week’s high.
There was little change in value over the final several days of the session under examination. The current intraday session is not much better, and a little candle showing trading activity was also visible. On the weekly, it closed with increases exceeding 2%.
The previous intraweek session also ended with several bullish readings on MACD. After a bearish divergence the previous week. On Tuesday, as a result of the coin’s big climb, the 12-day EMA began to rebound.
There were hopes of a bullish divergence as both the 12-day and 26-day EMAs were in contact. This occurrence typically occurs before an upward trend. In light of this, we might anticipate further price hikes over the course of the following week.
However, over the last 40 hours, we noticed massive stability in value. As a result, the anticipated divergence is not evident. Nonetheless, we may see more price tussle around $1,200.
3. Binance coin (BNB)
In comparison to the previous three weeks, Binance coin’s price performance improved during the previous intraweek session. The coin witnessed limited trading volume over the time period under examination, which appears to be slowing the enormous dump.
It had a poor week’s start, similar to the majority of cryptocurrencies, opening at $251. It fell to a low of $237 before rising somewhat and closing with losses of more than 4%. The next day, the downward trend ended.
The coin soared from $239 to a high of $252 the following day, and the bulls orchestrated a big rise. It recovered from previous losses and increased to the week’s opening price. Unfortunately, the bears regained control the next day as BNB retraced to a low of $245.
At the end of the session, it had lost 2.15%. Like the majority of cryptocurrencies, there were no notable price fluctuations during the past four days of the week due to low trading volume.
Many looked forward to this week for several reasons. One such is the Moving Average Convergence Divergence. Recently, BNB displayed a bearish divergence. After a steep decline the prior week, the 12-day EMA decreased even further as a result of Monday’s price movement.
A recovery that began on Tuesday was sparked by the price increase. There will soon be a divergence because the 12-day EMA and the 26-day EMA are currently so close to one another.
At the time of writing, we noticed both metrics touching. BNB is also seeing small fluctuations in value. We may see an attempt to reclaim $250 and close the week at this mark.
4. Ripple (XRP)
The previous week was one that saw ripple make attempts at reclaiming key levels. However, these effort seems to not be sufficient as we noticed a doji on the weekly. This is a clear indication that the altcoin closed the session under consideration with no notable increases.
On Monday, it began trading at $0.35 and fell as low as $0.33. The bulls made an effort to recover during the intraday session’s final hours. As a result, the coin lost more than 3% and ended the day at $0.34.
They increased their lead on Tuesday, which led to a $0.35 price high. It experienced heavy resistance at the mark, though, and reversed course to close at $0.348. Nevertheless, it gained roughly 3% at the closing.
On Wednesday, it once again fell below $0.33, but it bounced back and closed the day at $0.34 with little change in price. The following day, we observed several attempts to achieve stability over $0.35.
However, it failed due to a decline in trading volume. Nonetheless, it maintained the key which also affected indicators like MACD. A recent bearish divergence was seen in XRP. After a significant decline the previous week, the price movement on Monday caused the 12-day EMA to decline even more.
A resurgence that began on Tuesday was sparked by price increases. A divergence is ready to narrow because the 12-day EMA and the 26-day EMA are currently so close to one another.
True to these words, Ripple had its bullish divergence yesterday. This was a result of a more than 5% surge. We also noticed that surge is still present as the coin may close the current intraday session with notable gains. If the coin maintains the current momentum, we may see an attempt at $0.40.