Crypto Price Analysis Dec-24: Ethereum, Ripple, Solana, Luna, and Avalanche
This week, we take a closer look at Ethereum, Ripple, Solana, Luna, and Avalanche.
Ethereum has reclaimed the $4,000 level and appears ready to move higher towards the next key resistance at $4,400. The battle for the $4,000 level was intense, and it took almost a week until the buyer side prevailed. The price dropped to the former support at $3,700 several times, and the outlook on Monday was grim. But this quickly changed as the market turned back up. As such, ETH closed the past seven days in green with a decent 3.7% price increase.
The indicators have now turned bullish on the daily timeframe, particularly the MACD, which has crossed to the positive side on Wednesday. ETH looks likely to continue higher where it will be presented with its next challenge, the $4,400 resistance.
While the current price action calls for optimism, it is important to remember that the weekly timeframe remains bearish, and the current price action can be a short-term relief. Only if ETH moves beyond the current resistance will it be possible to hope for a test of the all-time high at $4 868.
This week, XRP finally returned to the uptrend after consolidating for 14 days. The price moved higher fast and broke the $0.89 resistance, which has now turned into support. At the time of this post, XRP is just under the $1 resistance ending the past seven days with an excellent 20% price increase. The cryptocurrency also benefited from a good market environment, as discussed above on ETH.
Since $1 is a key psychological level, it is unlikely that XRP can break above on its first attempt. This seems to be the reason why today’s price action is shaky after being rejected at this key level. XRP will need to consolidate and sustain the recent gains before attempting another shot at this key level.
The cryptocurrency is losing a bit of momentum right now, as shown by the MACD histogram, which may make a lower high today. Nevertheless, a pullback would be normal in this context, and a further test of the $1 can be expected at any time.
SOL also had a good week, achieving a respectable 7.6% price increase in the past seven days. After it found support on the $150 level, the price rallied and is now sitting on the $188 support that used to act as resistance in the past.
If SOL can sustain the current rally, then the next key resistance is found at $205. Since both the MACD and RSI have turned bullish on the daily timeframe, it is likely that SOL can reach higher in the coming week. However, breaking above $200 appears difficult, so it’s wise to expect a lot of volatility as the market moves forward.
This last move higher was also on low volume, therefore, the confidence in the current price is lower. The bulls have to step up their game, and their first mission is to maintain a price above $188. If successful there, then a $200 valuation becomes probable for SOL.
Luna has broken another record this week by achieving a three-digit valuation at $100. For this reason, it is one of the best performers in the market right now, with an explosive 56% increase in seven days.
This price action is also, in part, due to the fact that the Terra USD stablecoin will be listed on the Binance exchange on Christmas day. The Terra ecosystem adoption is spreading fast, which benefits Luna’s price. Somewhat ironic considering the listing news, the Terra network replaced Binance Smart Chains this week as the second largest network by total value locked, second only to Ethereum.
The critical level at $100 will likely act as a resistance, and Luna is becoming overextended with RSI at over 75 points on the daily timeframe. While the fundamentals are strong for Luna, it is very important to be vigilant during turbulent price action like now. The support level on the current chart is found at $77.
AVAX’s price entered a very steep rally ever since testing the $77 support level and is now found on the $121 resistance level, thus ending the week with an excellent 25% price increase. If AVAX can sustain this rally further, then a test of the all-time high at $147 becomes likely.
However, there are a few warning signs that this rally may approach the end. The first is the lower highs on the MACD histogram (daily timeframe). Volume has also vanished as the price moved higher, and the RSI is curving down. Taken together, the indicators show a clear loss of momentum, and AVAX may enter a short correction soon if this does not change.
Looking ahead, AVAX has good support just above $100, and provided the overall market remains bullish, AVAX is well placed to continue to be a performer.