Crypto Price Analysis Feb-3: ETH, XRP, ADA, MATIC, and FTM
This week, we take a closer look at Ethereum, Ripple, Cardano, Polygon, and Fantom.
Ethereum (ETH)
Ethereum, the second-largest cryptocurrency, continued to consolidate this week. The price only registered a 2.9% increase. This is because ETH is stuck in a channel between $1,670 and $1,550.
All attempts to break these levels were rejected in the past two weeks. While some altcoins were booking double digits gains (see Fantom below), Ethereum appears to be on a pause. This could also be because money is rotating between different altcoins.
Looking ahead, ETH will eventually break away from this range, and that will set the tone for where the price will go next. The current bias is neutral, and the indicators also give mixed signals.
Ripple (XRP)
Ripple has lost its bullish momentum and could not push higher in the past week. For this reason, the price is at a similar point as seven days ago. Nevertheless, XRP bulls defended the support at 40 cents and could attempt another rally later.
The resistance is at 44 cents, and with the weekend approaching (characterized by lower volume), it is unlikely that this level will be tested. At best, XRP could continue to consolidate above the key support.
Looking ahead, it’s more likely for the cryptocurrency to continue moving sideways. If the overall market remains bullish, then we could eventually see XRP attempt another rally toward 44 cents.
Cardano (ADA)
Cardano managed to slowly move higher this past week and booked a 5.8% price increase. Buyers claimed the 39 cents level as support, but this remains fragile to any possible selloff. Should they hold here, the next key resistance levels will be found at 42 and 44 cents.
A big concern for ADA holders is the fact that the daily indicators, such as RSI and MACD, have both been flagging a bearish divergence as the price moved higher. This shows the bullish momentum is becoming weaker, and bears could return at any point.
Looking ahead, this cryptocurrency had a great performance since the start of the year, and a near-term pullback is not out of the question. If this happens to be the case, the next levels of support under 39 cents will be found at $0.36 and $0.34.
Polygon (MATIC)
Polygon had another excellent week, increasing by 8%. The price almost reached $1.3, which is currently acting as a critical resistance. The support is at $1, and so long MATIC holds above this level, the bias will remain bullish.
However, buyers need to be cautious because this last push has created a bearish divergence on the RSI and MACD indicators. If the volume declines, then a retest of the key support will become more likely.
The last time MATIC broke above $1, buyers failed to hold the price above this key psychological level. Failure to do so would likely result in a further decrease.
Fantom (FTM)
Fantom is this week’s top performer, booking a 27% increase. This impressive recovery comes on the back of a resurgence for DeFI tokens. Since the start of the year, FTM managed to quickly triple in price, moving from 20 cents to 60 cents.
The current support is found at 50 cents, and if bulls maintain the pressure, then FTM has a good chance to continue its current rally toward 70 cents, where sellers may return (key resistance).
Looking ahead, the price action indicates Fantom has likely found a bottom. With a clear higher high, the price has put a firm end to the bearish downtrend and is building a great foundation for a higher valuation in the weeks to come.
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Filed under: Bitcoin - @ February 3, 2023 2:47 pm