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The cryptocurrency market has rallied over the past two weeks.
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Despite this surge, the uptrend hinges on key resistance zones.
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For the momentum to continue, 3 altcoins are looking to break above critical resistance zones.
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The cryptocurrency market has rallied over the past two weeks, clawing back most of the losses suffered in early July. However, the uptrend remains fragile as key resistance levels haven't been breached yet.
This recent surge is a crucial step away from the danger zone for the crypto market as a whole. Yet, for the momentum to continue, the total market capitalization needs to decisively settle above $2.35 trillion. This hinges on sustained demand for large-cap cryptocurrencies, including Bitcoin.
In this context, let's delve into important price levels for Ripple, Ethereum, and Solana as the three cryptos look to break above resistance zones.
1. Ethereum
After testing the crucial $2,800 support zone throughout June's downtrend, Ethereum gained momentum this week by breaking through the last downtrend in volume.
Early in the week, Ethereum surged to $3,500 but began losing momentum in the following days. The latest bearish momentum indicates that no support has formed above the Fib 0.5 resistance zone at $3,400. Therefore, Ethereum must close the week above $3,400.
If Ethereum fails to maintain this level, it may retest the previous support at $3,270. The $3,270-$3,330 zone, aligned with short-term EMA values, serves as an important support line. A potential retreat to this support line, extending to $3,200, could strengthen the upward movement.
On the upside, $3,540 emerges as the most critical resistance level. This level corresponds to the Fib 0.618 correction level and could be decisive for Ethereum's continued upward trajectory. Last month, the $3,400-$3,500 range acted as support during the bearish phase, making this region significant once again. Monitoring the $3,270 support will be essential in the event of downward pressure.
If the momentum persists, the path toward the $4,000 region will reopen above $3,540, with resistance at $3,730 and the previous peak of $3,975.
Spot ETF transactions for Ethereum are likely to start next week, with issuers already setting transaction fees for spot ETH ETFs. This could lead to volatile movements, but an increase in ETH demand may drive prices upward.
2. Solana
Since March, Solana has shown a bearish momentum, consistently forming lower highs. It has established support around $128.
In early July, Solana found support at the $128 region and began testing the upper line of a triangle pattern formed over the past five months.
Despite testing the falling trend line three times before, Solana has not broken through. In the short term, we will continue to monitor this triangle pattern.
This week, Solana paused at the falling trend line, which corresponds to the $155-160 range. For a confirmed breakout, Solana needs to close above $160 on a daily basis.
To sustain a bullish trend, it must break the lower peak formation and gain the $180 zone, above the Fib 0.618 level, after forming a floor at $160.
If Solana can reach $180, the potential for a bullish expansion increases. The Fibonacci expansion levels suggest that Solana could then rise to the $230-260 range.
However, if Solana fails to overcome the resistance at $180, it may retest the downtrend. Additionally, if sellers remain active at $160, Solana could continue to move within the triangle pattern, potentially leading to a retest of the support zone below $130.
3. Ripple
Over the past two months, XRP's price compressed following a sharp decline in April. It broke out of a symmetrical triangle formed by lower peaks and higher lows, resulting in a 25% depreciation that matched the triangle's height. This move completed the triangle formation.
In July, XRP reversed its direction and began an upward trend, driven by increased demand and speculation about a potential deal between Ripple and the SEC to resolve their years-long lawsuit.
XRP recently tested the $0.60 region but has since paused. For the rise to continue, concrete developments regarding the Ripple case are crucial. Without positive news, the speculative-driven price increase could reverse, potentially causing XRP to fall to around $0.50.
Conversely, a weekly close above $0.60 would be significant, as it would re-establish the bullish channel from July 2022 and surpass the Fib 0.618 level.
If demand for XRP persists, short-term targets are $0.65, $0.72, and $0.80 after $0.60. Current short-term support levels are $0.57, $0.53, and $0.49.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.