Leading digital currencies are crashing as we predicted but we expect an upswing in price action soon. This report, analysis, and predictions will guide you into the new week to make smart decisions in interacting with the delicate world of digital currencies.
BITCOIN (BTC)
BTC fell to its lowest level since last July at the opening of the week. On Monday, May 9, 2022, it dropped below $33,000 to start the week. The selloff in cryptocurrency started a week before, following the Fed’s decision to hike interest rates by 0.5%. Bitcoin slipped to a ten-month low to start the trading week, as a red wave continued to sweep the cryptocurrency market.
Following five consecutive days of declines, BTC/USD dropped to an intraday low of $32,813.31 on Monday which is the lowest level price it has traded since July 23 last year, when prices went on to drop below $30,000. Data from the popular analytics resource, CryptoQuant revealed that 46.8% of Bitcoin’s supply is at a loss. This means that investors acquired it at a higher price.
On Thursday, 12 May 2022, Bitcoin further dropped to its lowest level in 16 months, triggering a flight from risk assets such as tech stocks, while the collapse of TerraUSD, a so-called stablecoin, highlighted the pressure on cryptocurrency markets. Bitcoin (BTC) fell below the $27,000 threshold as the ongoing cryptocurrency market sell-off continues. In November of 2012, it reached an all-time high of $69,000.
Going into the weekend, Bitcoin retreated to its lowest level as the price the nosedived to lows of $26,595, a scenario not seen since Dec 30, 2020, when the leading cryptocurrency dropped below the $27,000 zone.
Even though Bitcoin had regained momentum to hit $27,769 during intraday trading, the top crypto continues to limp based on factors like Fed’s interest rate hike and the Terra crash. Bitcoin rebounded and was trading higher in Friday’s session, as markets recovered a bit from sell-offs earlier in the week.
Following a streak that saw it fall for seven of the last eight days, the world’s largest cryptocurrency was firmly in the green on Friday. BTC/USD rose to an intraday high of $30,921.27 at the earlier hour of the weekend with prices up by as much as 10% at the height of the rally.
ETHEREUM (ETH)
Ethereum, like most other coins, has been bearing the brunt of the broader market dump. On the daily chart, the alt leader made lower lows on Monday, May 9, 2022. It registered 5 back-to-back red candles. As a result, ETH’s depreciation totaled up to 4% in 24-hours. The second-largest crypto exchanged hands at $2.44k at the beginning of the week.
On Tuesday, Ethereum had a strong support band extending from $2369 to $2441. Ethereum price displays some of the most bearish price action observed since the Covid crash in 2020. Ethereum’s price bounces off the $2,200 support level after a 12% crash over the last three days. Ethereum price sealed its bearish fate after breaching the consolidation pattern’s lower trend line on May 6. This development worsened the situation and caused a steep correction for ETH.
On Wednesday, Ethereum’s price traded around the $2,199 support level, where buyers seem to be scooping ETH up at a discount. Hence, investors had to be cautious and smart in buying the dips. Ethereum price bounces back strongly but the threat of a further crash remains. Ethereum price traded below an ascending parallel channel since its breakout on May 6. So far, ETH has crashed 20% and tagged the $2,199 support level. Now the bounce off this barrier seems to be coming along well.
On May 12, 2022, Ethereum’s price traded at $1935 as the bears pushed into the lowest price territory for 2022. The following day which is May 13, Ethereum’s price was less damaged from a macro perspective. Ethereum price underwent a harsh sell-off like most cryptocurrencies in the last 7 days. The bears managed to accomplish a successful liquidity hunt as the yearly lows were breached at $2150. However, unlike Bitcoin and XRP, the Ethereum price has not breached 2021 lows at $1700.
Going into the weekend, Ethereum (ETH) has been recovering over the last few days after tanking to its lowest level in months. The coin is however poised for a bigger bounce based on momentum indicators. But it still faces major upward resistance and downside risk. Here are some important facts:
SOLANA (SOL)
At the beginning of the week, Solana price action tested its final support before a capitulation move began. Bulls were absent and conspicuously avoidant. Upside potential remains, but conviction by buyers is needed. Solana’s price action remained exceptionally bearish, with zero near-term support. SOL has broken down below its 2022 Volume Point of Control at $90 and is close to pushing new 2022 lows.
Solana’s price showed a total absence of buyers, with major lows incoming. Solana price remains within an Ideal Bearish Ichimoku Breakout, signaling to traders that a long-term and persistent sell-off is likely to culminate with a massive and abrupt drop.
Solana’s price continues to slide further south on Tuesday, following the broader cryptocurrency market.
Solana price hit new 2022 lows over the past 7 days, hitting the $75 value area for the first time since late August 2021. However, Solana’s price showed bears in control, $50 still in play. Solana price remains in price discovery mode until it hits the next high-volume node – which doesn’t appear until the $50 level. An almost total lack of support exists for SOL between the 2022 Volume Point of Control at $90 and the next high-volume node (from the 2021 Volume Profile) at $50.
At midweek, Solana’s price revealed a negative diversion between the stock market and cryptocurrencies. SOL price was at the cusp of dropping massively as the correlation broke down. Solana (SOL) price flashed warning signs and red lights as price action dipped back to the low end near $60, flirting with new lows for the year. With price action under downward pressure, the only real level providing any support was $58.64, which goes back to May 19, 2021, and saw a clear break on August 16. SOL price at risk of trading be…
Solana’s price has suffered the same collapse the broader cryptocurrency market has experienced. After last week’s destruction of Terra’s LUNA, investors and traders are looking at projects with integrity – one of those is Solana.
RIPPLE (XRP)
Ripple price flipped below a stable floor as technicals reflected a bullish possibility. XRP price traversed a W-bottom reversal pattern. This setup has been forming since November 2021 and contains a long downswing followed by two retests of a support level. For XRP, the stabilization is happening at around $0.582.
While the recent bearishness has caused the remittance token to breach it, the bullish divergence seems to be unaffected. This technical setup is formed when the asset produces a lower low and the momentum indicator, aka Relative Strength Index (RSI), forms higher lows.
Ripple price was in a classic bounce-off on Tuesday, May 10, 2022, after the sharp nosedive move on Monday. XRP price was set to rally back and erase most of the incurred losses since last week.
Moreover, Ripple’s (XRP) price sharply declined last week as markets got shaken by disappointing and mixed earnings, as well as more geopolitical tensions. With that pressure, the XRP price tanked from $0.65 to $0.48 and saw the Relative Strength Index (RSI) shoot deeply into oversold territory.
In midweek, Ripple’s price recovered to $0.44, in time for the payment giant’s day in court, defending against the SEC’s allegations. XRP price recouped losses from the pullback on May 11 as the payment giant prepares for its SEC v. Ripple court date on May 13, 2022. XRP proponents have retrieved and shared William Hinman’s emails that the SEC sought to protect.
Going into the weekend, Ripple price printed the largest bearish engulfing candle within the trend on the 2-day chart. Invalidation of the bearish downtrend was a breach above $0.58 XRP price had been on a steep decline as the bears are wiping out liquidity levels dating back to February 2021.
CARDANO (ADA)
At the beginning of the week, Cardano’s price was set to tank another 30% before finding support. ADA price neared a distribution zone around $0.50, where bulls are ready to build a massive stake. Cardano (ADA) price missed actions from bulls, but as price action was delivered at the mercy of the bears, bulls were fretting about a plan to spark a turnaround. With the US dollar’s strength, bulls sat on their hands and waited for the right buying opportunity, which was around $0.50, where a distribution zone was waiting for massive buying.
Cardano’s price was wiping out all liquidity on the current sell-off as it neared the next target of $0.54 and then $0.44 on Tuesday.
Going into the weekend, Cardano’s price was on a massive downswing while all the altcoins were rallying. The recent bearish onslaught made things worse for ADA holders. Cardano’s price failed to establish support. Cardano’s price remained on a 35-week downswing since its all-time high at $3.11 in September 2021. This tiresome downtrend seemed to have caught a break in March when ADA rallied 60% and set a higher high at $1.24.
Cardano’s price dropped nearly 23% during the Thursday trading session. Cardano price action has been some of the most bearish in its history. The nine-month stretch from September 2021 to May 2022 is arguably the most devastating price action Cardano has ever experienced. However, a low may have been found, and a resumption of the bull market is likely to occur soon.
Cardano price could be prepping for a fatal drop to $0.20. Cardano’s price could be prepping for its final capitulation low. The technicals indicate an unfolding zig-zag that can extend as far as $0.20. Traders should be very cautious as the declining wave does hint at a 20% worth of countertrend space to potentially scalp upwards from the current price of $0.55. Still, scalpers in the market should be aware they are casting rods in treacherous waters as the slope of the decline indicates the current price within an extending and unfinished wave 3.
TETHER (USDT)
Tether was on a decline in the last 7 days. The price of Tether fell by 0.05% in the past 7 days. The price declined by 0.05% in the last 24 hours of the week and further shrunk by 0.05% at the opening of the new week. The current price is $0.998 per USDT which is 18.20% below the all-time high of $1.22.
DOGECOIN
Dogecoin continuously declined this week. The price of Dogecoin fell by 26.82% in 7 days. It was bearish by 1.91% in the last hours of the weekend. It opened the new week with a further downtrend of 1.24%. It is currently exchanging hands at $0.0871 per DOGE and it is 88.23% below the all-time high of $0.74.
USD COIN
USD Coin is on the rise this week. The price of the USD Coin experienced an upswing of 0.00% in the past 7 days. The price declined by 0.02% in the last 24 hours. In just the past hour, the price shrunk by 0.00%. The current price is $1.00 per USDC. The new price represents a new all-time high of $1.00.
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