The overall market is mixed this week. While some altcoins like Solana (SOL) and Terra (LUNA) continue to rise in value, the majority of the top 10 altcoins are trending indecisively sideways.
After the entire crypto market had rallied across the board in the last four trading weeks, the majority of the overall market remains in a wait-and-see mode. Once again, the previous week’s winner Solana (SOL) and Terra (LUNA) stand out, outperforming the rest of the major altcoins. Cardano (ADA) is also pushing to ever new all-time highs in light of the smart contract launch. Moreover, the non-fungible token (NFT) space is currently drawing a lot of interest from the media and crypto investors alike.
Best price performance among the top 10 altcoins:
Price analysis based on the value pair SOL/USD on Binance.
Increasingly, institutional investors are also showing interest in Solana, pushing the SOL price above the psychological 100 USD mark this Monday morning. Solana’s entire ecosystem is currently benefiting, with Raydium (RAY) and Serum (SRM), among others, also trending bullish recently.
Bullish Variant (Solana)
After Solana generated a new all-time high on Saturday, August 28, slight profit-taking is occurring in the last 24 hours. The SOL price stands at 93.7x percentage points at the time of writing this analysis. As recently as the beginning of the week, Solana had corrected to near the $64.06 support level mentioned in the previous week’s analysis before the bulls renewed buying pressure. If the bulls manage to stabilize the SOL price above USD 79.00 and sustainably break through the USD 97.60 area, the next important price target at USD 121.79 will come into view. This is the 261 Fibonacci extension of the current dynamic uptrend.
Investors will again want to lock in further gains here. Should Solana bite above USD 100 in the medium term and also overcome USD 121.79 on the daily closing price, there is upside potential in the direction of USD 160.94. The projection target is located here. This is where the projection target in the form of the 361 Fibonacci extension runs. Depending on the development of further crypto projects around Solana, the price could even reach the 461 Fibonacci extension at 200 USD. If the competition also succeeds in the long termeven rises to USD 239.23 and a maximum of USD 278.38 cannot be ruled out. These longer-term price targets are derived from the 561 and 661 Fibonacci extension.
Bearish variant (Solana)
After the short consolidation within a bull flag at the beginning of the week, which was in line with the rules, the bears once again lost their courage. Although the SOL price is currently taking a breather, as long as the support area around USD 79 is not breached on the daily closing price, the bulls have the reins firmly in their hands. Only when the sellers manage to break the EMA20 (red) at USD 70.85, price targets at USD 64.06 (supertrend) and USD 58.61 are activated. At this price-level, the old all-time-high from May 19, strong resistance is expected again. A daily close below this strong support, however, would cloud the chart picture in the short term. A price correction to USD 52.83 or even USD 50.07 would then be possible. If Solana falls back into the red support area, a decline to the area between USD 47.89 and USD 43.49 is also conceivable.
This is where the 61 Fibonacci retracement is found. In addition, this area represents the breakout level of the current breakout movement. Should this support level also be sustainably undershot, the price will fall back to USD 39.07. If this support level is also abandoned, the correction will extend to at least USD 34.26. In addition to the 61 Fibonacci retracement, the EMA200 (blue) and MA200 (green) are also currently at this price level. The current chart situation identifies the area around USD 34 as the maximum bearish price target. Investors should not fall into FOMO, but rather plan for setbacks to the range between USD 70 and USD 80 for initial purchases.
The RSI as well as the MACD indicator were able to avert a sell signal for the time being and continue to trend bullish. However, the RSI shows a first slight bearish divergence. Considering a value of 80, this is not surprising.
Worst price performance among the top 10 altcoins:
Price analysis based on the value pair DOGE/USD on Binance
Dogecoin represents the worst performer among the top-10 altcoins again this week. After already weakening in the previous week, the DOGE price fell back to 0.264 USD before a slight countermovement to the current 0.282 USD set in. Thus, the EMA50 (orange) could be defended for the time being. Only a recapture of the EMA20 (red) brightens the chart picture for the bulls.
Bullish variant (Dogecoin)</h2>
The price of Dogecoin is currently trading in the area of the EMA20 (red). If investors can lift the DOGE price
back above this moving resistance and also break through the 23 Fibonacci retracement, the resistance at 0.313 USD will first come back into view. If this resistance is dynamically overcome, a subsequent rise to the high at USD 0.352 is to be expected. This is also where the upper Bollinger band is located, which is why a dynamic rise is needed to overcome this zone. A break of this resistance activates the cross resistance at USD 0.383 as the next possible price target. Here we find the upper edge of the orange resistance zone paired with the 38 Fibonacci retracement. If this resistance can also be sustainably broken, a march through to the 50 Fibonacci retracement at USD 0.448 is likely.
As there is also strong horizontal resistance here, the bull camp will need to make further efforts. Only a daily close above it will activate the red resistance area between USD 0.520 and 0.570 as a medium-term target area. If a stabilization above the 61 Fibonacci retracement at 0.520 USD succeeds, this would be an important partial success. If the bulls are then able to overcome the 0.571 USD level and the 78 Fibonacci retracement at 0.618 USD, a rise to 0.697 USD can be envisaged. A retest of the all-time high at USD 0.743 would also be increasingly likely. If the all-time high is sustainably overcome, a long-term rise to the pink target range between USD 0.90 and USD 0.96 is possible. Here, investors should increasingly realize profits. In the long term, a rise to the 161 Fibonacci extension at USD 1.10 would be conceivable. The maximum, albeit currently unrealistic, price targets are USD 1.32 and USD 1.68. These targets are from the 200 and 26 levels. These targets are derived from the 200 and 261 Fibonacci extension.
The bears must do everything they can to keep the price below USD 0.313 and target USD 0.264 again. A break of the strong support at USD 0.264 is likely to generate further downside momentum. The correction is likely to extend to the next key support at USD 0.238. This is where the super-trend and the lower Bollinger band are found. Here, the bulls will presumably attempt a new stabilization. If the sellers succeed in dynamically undercutting this price level, a preliminary decision will be made at the blue support zone. Besides horizontal support, the EMA200 (blue) and MA200 (green) are selling here. Moreover, the currently ongoing upward-movement started here. An abandonment would have fatal consequences for Dogecoin. The Doge price is likely to fall back to the maximum bearish price targets at USD0.195 or even USD0.175. Investors should therefore consider a new entry in the range between 0.238 USD and 0.225 USD.
RSI has slipped back into the neutral zone between 45 and 55 with a reading of 52. A break below 45 generates a fresh sell signal. With this, the RSI would follow the MACD indicator. The latter already has a short signal active. The same applies when looking at the weekly chart. Here, too, both indicators are trending south and threaten to trigger new sell signals in the near future.
Stability of the Top 10
The split picture in the overall market is also evident when looking at the top 10 altcoins. Half of the top coins show a price increase on a weekly basis. In particular, Solana (SOL) with 24 percentage points of value growth, as well as the newcomer among the ten largest cryptocurrencies, Terra (LUNA), with 21 percentage points, impress. Cardano (ADA) and the Binance Coin (BNB) also show strong performance with 17 percent and seven percentage points respectively. In contrast, the underperformer among the top 10 altcoins, Dogecoin (DOGE), loses 12 percentage points in value. Uniswap (UNI) and Polkadot (DOT) are also weak, losing around eight percent of their value.
After several strong weeks, Ripple (XRP) is also down 6 percent, despite recent positive news. Also this week, a newcomer to the top-10 is stirring up the overall market. Terra pushes Bitcoin Cash (BCH) out of the top 10 cryptocurrencies list. The uneven performance among the top-10 altcoins has resulted in several ranking changes. Aside from Terra’s rise into the top-10, Solana continues to gain ground, moving past Polkadot into seventh place. Increasingly, new ecosystems like Solana and Terra are coming into investors’ focus, pushing past crypto veterans like Bitcoin Cash (BCH) and Litecoin (LTC).
Winners and losers of the week
The current consolidation of the leading cryptocurrency, with a price discount of around three percentage points, is also causing mixed price action in the overall market. Bitcoin Cash ABC (BCHA), which emerged from the fork of Bitcoin Cash (BCH), is showing the strongest performance. BCHA is up 100 percent, leading the top 100 altcoins. Tezos (XTZ) and Arweave (AR) also stand out positively, each jumping nearly 60 percent. Overall, about half of the top 100 cryptocurrencies show a week-over-week price gain. Among the weekly losers, XDC Network (XDC) posted the largest price drop, falling 20 percent.
Also showing weakness is Sushi (SUSHI), down 16 percent in value, followed by THORChain (RUNE) and meme coin Shiba Inu (SHIB), each down 13 percent in price. Despite a subdued week, overall price gains and losses are moderate. Altcoins from the third tier, especially from the non-fungible token (NFT) sector, are showing considerable gains in value in some cases. Quite a few investors are waiting for a decision on the direction of the cryptocurrency Bitcoin before making new investments.
Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment of the analyst.
The chart images were created with the help of TradingView to create the charts.
USD/EUR rate at the editorial deadline: 0.84 euros.