As the altcoin market is busy making up for the devastation caused by the SEC lawsuits, Ethereum investors are preparing for the golden cross, an important technical development. Other cryptocurrencies that give a green signal for the coming days are as follows…
Ethereum approaches golden cross on weekly chart
ETH price is down roughly 20% from its local highs in 2023. With the last drop, the depreciation reached 65% from its peak in 2021. Investors took the second hit with the stock market lawsuits filed by the SEC on June 5 and 6. Following these developments, especially high-volume altcoins such as ADA, DOGE and SOL fell by more than 30% on a daily scale. Bitcoin and Ethereum, on the other hand, remained relatively strong compared to others.
In the overall picture, it can be said that ETH price is doing well despite the crisis. ETH price is currently about to reach the golden cross, the intersection of the 50-week moving average and the 200-week moving average.
Golden cross comes right after a death cross. It overrides a long-term sell signal with a buy signal. When using a two moving average system, a buy signal occurs when the shorter time frame crosses the longer time frame. This is called a golden cross, and an opposite cross is called a death cross.
What does the historical data say?
When the golden cross last appeared, Ethereum climbed another 680% before the top. In contrast, ETH rallied more than 1,700% last time it broke above both moving averages in 2020. The current price action has only brought Ethereum below 5% from the time it took it above the two averages. Twitter’s @tonythebullBTC comments to a follower suggesting that the golden cross will help the 20% rise.
With all the noise in the market right now, everyone has entirely missed the fact #Ethereum has formed a weekly golden cross pic.twitter.com/ylNwp3DEUI
— Tony "The Bull" (@tonythebullBTC) June 12, 2023
XPP price targets new local highs as altcoin market bleeds
XRP price corrected from the $0.540 resistance after last week’s SEC lawsuits. It then dropped below the $0.52 support zone and followed the momentum of Bitcoin and Ethereum. XRP price is currently trading above $0.515 and the 100 SMA (4 hours). It is testing the 76.4% Fib retracement level of the downward move from the $0.5411 high to $0.4752 low. positive news, cryptocoin.comGaining some momentum after the new documents that emerged in the SEC case, which we quoted as.
Technical analysis shows that an initial resistance on the upside is near the $0.535 region. However, there is also a key bearish trend line forming with resistance near $0.535 on the 4-hours chart. The first major resistance is near the $0.545 level. A successful break above the $0.545 resistance level will push the price towards the $0.565 resistance. Any further gains open the doors to $0.580 for the bulls.
XRP, next technical levels
Here are the next resistance and support levels for XRP based on the breakdown of the indicators:
- Major support levels: $0.515, $0.501 and $0.480.
- The main resistance levels are: 0.535, 0.545 and $0.550.
FLOKI price recovers from a sharp decline
In another positive technical development, FLOKI rallied over 5% on the day. On the contrary, DOGE and SHIB were falling in the meantime. The only thing that can be said for FLOKI at the moment is its superior performance against its rivals as a meme. The latest data shows that there is a slight recovery across the market at the moment. FLOKI evaluates this situation in the region of $0.00002204 with an increase of 1.8%.
Altcoin bulls turn away from Dogecoin: New local bottoms arrive
Dogecoin price is currently poised to drop to a nine-month low. If it drops further, it will hit September 2022 lows. As it stands, the Parabolic Stop and Reverse (SAR) indicator is showing an active downtrend. The presence of the dots on the candles is evidence of this drop, which could intensify even more. This becomes evident thanks to the Average Directional Index (ADX), which is above the 25.0 threshold, indicating that the active trend is strong.
But looking at the on-chain activity, Dogecoin investors don’t seem to care much about this drop. Their growth in the third quarter of 2023 was phenomenal and remains so, adding nearly 110,000 new addresses last month, bringing total DOGE holders to 4.65 million.
One of the biggest reasons behind this is the lack of fear in the crypto market. Because investors see this as an opportunity to accumulate supply. The Crypto Fear and Greed Index points to a neutral sentiment in the market that has survived last week’s Fear.
However, the DOGE market is currently heavily bearish. Therefore, there is also the possibility that DOGE investors will pull back soon. In the case of Dogecoin, the weighted sentiment is at a historic high pointing to pessimism among investors.
If this pessimism becomes widespread, DOGE faces some setbacks in terms of the support it receives from its investors. Technical analyst Aaryamann Shrivastava warns that while the fear triggered by the SEC lawsuits has subsided, Dogecoin is still showing signs of the downside.
