Weekly market recap(from May 18th to May 24th)
Most cryptocurrencies fall back to their one-year-low and fluctuated in a narrow range over the past week. We can find that US stocks, which are also risky assets, fell back to the previous low, but its bulls are more dynamic than BTC at the same time last week. So it may take a long time for the crypto-market to restore bullish confidence after the LUNA event.
Last time, we mentioned the sell-pressure of the lower rail of the bearish channel (yellow area). This time, the bulls have attacked the lower rail many times, but it can be clearly seen from the graph that the bears still have strong energy. The price is currently below the support level after being squeezed by the lower rail. In terms of details, this week’s red candles are accompanied by a large volume. While eliminating the gains of the previous day, the bears repeatedly tested the strong support level of July 2021. The only good news is that this week’s fluctuation has reduced the risk of a high-slope decline.
Conclusion: Mostly falling. Although the slope becomes flat, we come to this conclusion based on the performance of bears this week. The support level formed in July 2021 can provide upward force, but so far, it is not as strong as the bears. Based on the performance of the past two weeks, we lower the resistance level to 31300. The price is still within the protection of the support level in July 2021. In terms of details, we believe that 29000 is a short-term support level.
ETH also maintained a fluctuation trend last week, and the pressure on the lower rail of the bearish channel still exists. The current price has not fallen to the low created in July 2021, and in terms of bearish performance in the last week, although it is still dominant, it is better than BTC in view of volume and decline. Bears are consumed by bulls. The other good news is that the high-slope downside risk is gone, and prices are in the process of recovering from the dumping.
Conclusion: Mostly fluctuation. ETH is in slightly better shape, with fresh bullish power having formed above the support given in the last report and now the gap is close to balance. We have narrowed resistance and support levels after a week of fluctuating in a tight range. New resistance is at 2150 and new support is at 1900. The recovery process will continue and its end will depend on when the price returns to the yellow zone.
SOL is back in the bearish channel. While part of the reason is that previous declines have remained destructive, so a return to the bearish channel is not difficult, this process still makes sense. This is also why SOL’s bears have been weaker than BTC’s this week, and the price has not retested the given support level (the green dashed line). In terms of details, the performances of bulls and bears this week are weak, which is in line with the process of recovering after the dumping.
Conclusion: Mostly fluctuation. Due to the narrowing of volatility, we lowered the resistance level and the new range is (44,59). The performance of SOL this week is better than that of BTC, but whether it can over-perform through the relative strength of one week is not yet conclusive.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.