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Home Prices ADA, DOT, ETH, and SOL Weekly Review – ETH Avoids the Deep Red

ADA, DOT, ETH, and SOL Weekly Review – ETH Avoids the Deep Red

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ADA, DOT, ETH, and SOL Weekly Review – ETH Avoids the Deep Red
ADA, DOT, ETH, and SOL Weekly Review – ETH Avoids the Deep Red

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Key Insights:

  • It was a bullish Monday to Friday, with the total crypto market cap rising by $17.8 billion to $905.6 billion.
  • However, US economic indicators and Fed fear pegged the crypto market back from more meaningful gains.
  • Technical indicators are bearish, with uncertainty about the economic outlook a headwind.

Monday to Friday, the crypto market cap rose by $17.4 billion to $905.6 billion. The upside follows two consecutive weekly losses, though the market cap continued to slip to sub-$900 billion.

Three sessions in positive territory from five supported the upswing. Market volatility across the FX and equity markets delivered crypto market support ahead of the Friday pullback.

The GBP/USD pair fell to an all-time low of $1.03565 as investors responded to the UK government’s mini-budget and the Bank of England’s need to intervene. Dollar strength put other currencies under pressure, with fears of a global economic recession adding to the FX market vol.

However, a pickup in US inflationary pressure weighed on the crypto market on Friday. The Core PCE Price Index increased by 4.9%, up from 4.7% in July, sending riskier assets into the red.

For the week, the NASDAQ 100 fell by 2.69%, with the crypto market enjoying a further decoupling from the US equity markets. Significantly, the NASDAQ fell for a third consecutive quarter, its worst losing streak since the global financial crisis.

Crypto – NASDAQ Daily Chart 011022

Also contributing to the upswing in the crypto total market cap were favorable updates from the SEC v Ripple (XRP) case.

On Thursday, the Court overruled the SEC’s objection to the Court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

The outcome of the SEC v Ripple case will impact XRP and the broader crypto market. A Ripple victory could see the onus of regulating the crypto market fall with the Commodity Futures Trading Commission (CFTC). The crypto market favors the CFTC over the SEC.

Crypto Market Cap Daily Chart 011022

Cardano (ADA)

Monday to Friday, ADA was down 2.47% to 0.435. The Vasil hard fork failed to support, with ADA down 4.19% for September and 5.43% for Q3.

ADA fell short of $0.50, with the markets now looking for a sharp increase in projects on the Cardano network. Compared with the previous week, the rise in the number of projects was modest, leaving ADA on the back foot.

Early in the week, ADA struck a Tuesday high of $0.463 before falling to a Wednesday low of $0.425.

On a trend analysis basis, ADA would need to move through the August high of $0.595 to break through the June high of $0.6688 and target the May high of $0.906. A return to $0.55 will be the key. However, a fall through the August low of $0.425 would give the bears a look at the 2022 low of $0.384.

ADAUSD 011022 Daily Chart

Looking at the EMAs, based on the 4-hourly, it was a bearish signal.

ADA sat below the 50-day EMA, currently at $0.444. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. Both signals were ADA price negative.

An ADA move through the 50-day EMA would ease selling pressure and give the bulls a run at the 100-day EMA ($0.453). However, following late September’s slide through the 50-day EMA, sub-$0.400 remains in view.

ADAUSD 011022 4 Hourly Chart

Polkadot (DOT)

DOT fell by 3.66% to $6.32, Monday through Friday.

A bullish start to the week saw DOT rise from a low of $6.16 to a Tuesday high of $6.81. However, a bearish second half of the week left DOT at sub-$6.40.

The bearish week left DOT down 10.23% for September and 10.48% for Q3.

There were no network updates to provide direction, leaving DOT in the hands of the broader crypto market and the NASDAQ 100.

Looking at the trends, a DOT move through the August high of $9.68 would support a run at $10.00 and the June high of $10.73. From $10.73, DOT would have a clear run at the May high of $16.44. DOT would need to break down resistance at the September high of $8.05 to support a shift in sentiment.

However, DOT has to avoid last week’s $6.16 low to prevent a continued retrace to the 2022 low of $5.97.

DOTUSD 011022 Daily Chart

Looking at the EMAs, based on the 4-hourly, the signal was bearish.

DOT sat below the 50-day EMA, currently at $6.44. The 100-day EMA eased back from the 200-day EMA, with the 50-day EMA falling back from the 100-day EMA. The indicators delivered negative price signals.

DOT would need to move through the 50-day EMA ($6.44) and the 100-day EMA ($6.59) to see a bearish trend reversal. However, failure to move through the 50-day EMA would give the bears a run at the September low of $5.97.

DOTUSD 011022 4 Hourly Chart

Ethereum (ETH)

ETH also had a bearish Monday to Friday, falling by 0.60% to $1,329.

Tracking the broader market, ETH struck a Tuesday high of $1,401 before sliding to a Wednesday low of $1,254. However, steering clear of the September low of $1,220, ETH revisited $1,374 before easing back into the red.

While the loss for the week was modest, ETH fell by 14.48% in September to reduce the Q3 gain to 24.21%.

ETH continued to struggle in the wake of the Merge. SEC Chair Gary Gensler’s comments relating to Proof-of-Stake cryptos resonated.

Viewing the trends, an ETH return to $1,800 would support a breakout from the August high of $2,031 and a return to $2,500. From $2,500, the bulls would target the May high of $2,968 and $3,000. A return to $3,000 would give the bulls a run at the April high of $3,582.

A fall through the September low of $1,220 would give the bears a run at the June and the current year low of $880.

ETHUSD 011022 Daily Chart

Looking at the EMAs, based on the 4-hourly, it was a bearish signal. ETH sat below the 50-day EMA, currently at $1,340. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were ETH price negatives.

An ETH move through the 50-day EMA could signal a shift in sentiment and support a return to $1,500. However, ETH would need to break down resistance at the 100-day EMA ($1,388) to target the 200-day EMA at $1,459.

Failure to move through the 50-day EMA would leave the September low and sub-$1,220 in play.

ETHUSD 011022 4 Hourly Chart

Solana (SOL)

SOL was down 1.86% to $33.2475, Monday through Friday.

Tracking the broader crypto market, SOL rose to a Tuesday high of $35.4300 before falling to a Wednesday low of $31.6400. However, steering clear of the August low of $29.915, SOL wrapped up the Friday session at $33.2475.

Despite the Monday to Friday loss, SOL rose by 5.61% for September to end Q3 with a 1.41% loss. Investor sentiment towards Solana-based NFTs has materially improved, delivering SOL price support.

Looking at the trends, a move through the August high of $48.42 would give the bulls a run at the May high of $95.19. SOL would need plenty of support to break out from $75.

However, a fall through the August low of $29.9150 would leave the June and the current year low of $25.78 in view.

SOLUSD 011022 Daily Chart

Looking at the EMAs, based on the 4-hourly, it was a bearish signal. SOL sat below the 100-day EMA, currently at $33.2915.

The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. Both were price negatives.

An SOL breakout from 100-day EMA ($33.2915) and the 50-day EMA ($33.3727) would support a run at the 200-day EMA ($33.8415). However, a bearish cross of the 50-day EMA through the 100-day EMA would give the bears a look at the August low ($29.9150).

SOLUSD 011022 4 Hourly Chart

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