Weekly Crypto Market Analysis with Geco.one 24.01.2022
The panicky wave of sell-offs that we saw in the cryptocurrency market in the second half of last week caused Bitcoin to drop below two technical support levels of around $ 40,700 and further $ 37,000, respectively.
It also caused the price of BTC to plunge below $ 35,000, which in turn is the lowest price level for this cryptocurrency since July 2021. It means that only since the 10th of November, bitcoin has already dropped by more than 50%.
It is noteworthy that — at least from a purely technical point of view — overcoming one technical support level usually opens the door to further drops towards the next support.
That means that we could expect further sales in the near future, for which the technical support area below $ 30,000 seems to be the realistic reach.
We could also expect potential drops in the near future on the quotations of Ethereum, which has lowered since the 10th of November last year by almost 53%, thus falling to the lowest level since July last year.
It is noteworthy that in the last week alone, two technical support levels of $ 3,000 and $ 2,750 have been overcome. Currently, the ETH rate is close to the following technical ceiling in the region of $ 2,350, and if this barrier is also broken, then we should prepare the possibility of further depreciation of ETH towards $ 1,750.
In the vicinity of the next technical support, there is also the quotation of the Matic cryptocurrency, the rate of which has recently dropped by almost 53%, reaching the lowest price level since mid-October last year at the beginning of the new week.
If only the support of $ 1.45 is permanently broken, then one should be prepared for the possibility of further depreciation towards $ 1.02, or even $ 0.69.
The current situation on the XRP quotations is also pro-declining, as the price has recently slipped below the technical support of $ 0.71. This fact means that we could expect further declines in the near future, for which the actual ranges seem to be around $ 0.52 and further $ 0.36.
Looking at the prices of XLM, we notice that the price of this cryptocurrency has recently slipped below two technical support levels located around $ 0.25 and $ 0.21, respectively.
Currently, the XLM price is below $ 0.18, which is the lowest price level of this cryptocurrency since the beginning of January 2021. If the downward trend continues, the XLM price could fall even to the level of $ 0.12 in the near future.
The current situation on the Cardano (ADA) stock is also very interesting. The price of this cryptocurrency has dropped below $ 1, which is the lowest level since February 2021.
If this support is permanently broken, i.e. if there is no major demand reaction that could negate this breakout and the ADA rate remains below $ 1, we could expect a continuation of declines even to $ 0.80 soon.