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NEW DELHI (CoinChapter.com) — The crypto market registered a slight recovery on Dec 23, with XRP, DOGE, MATIC, and ADA registering minor gains heading into the weekend. But DOT price remained in the red.
The slight uptrend failed to help Bitcoin (BTC) price move above $17,000, with the dominance of the largest cryptocurrency down to 39%. The downtrend in BTC price means the prime cryptocurrency token would end the year down by nearly 64%.
2022 would mark the third time Bitcoin has ended a year on a loss. The other two times were in 2014 and 2018. Moreover, a sustained recovery in crypto tokens would probably happen once inflation shows signs of slowing down globally.
Ripple’s XRP token continued rising upward after closing Dec 22 with a small gain of 1.33%. The cryptocurrency token price jumped 2.3% on Dec 23 to form a high at $0.355. However, volumes remained muted, indicating investors are being cautious.
Meanwhile, the momentum oscillator MACD is moving towards bullish levels. Negative bars on the MACD histogram are contracting, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving towards the MACD signal line (9-day EMA of MACD).
When the MACD line moves above its signal line, it will form a bullish crossover, prompting buyers to enter the market.
If the Ripple token continues to rise, XRP price might rise to challenge resistance near $0.357. A strong buying action might help the cryptocurrency token to break above immediate resistance. As a result, XRP price might rise to target resistance from its 50-day EMA (purple wave) near $0.385 before retreating.
Conversely, failure to maintain an uptrend could result in XRP price falling to test support near $0.34. Since Nov, the crypto token has tested the $0.34 support level multiple times. Furthermore, a breach below immediate support could push XRP cryptocurrency price to fall more than 9% to $0.32 before recovering.
Meme token Dogecoin price jumped more than 3.5% on Dec 23 to form the day’s high at $0.079 before bears pushed the price of the cryptocurrency token down. Moreover, both 20-day EMA (red wave) and 50-day EMA (purple wave) are sloping downwards, suggesting traders’ bearish outlook for the short-term range.
Furthermore, the meme crypto’s price action has left its 20-day EMA (red wave) poised to needle below its 100-day EMA (blue wave) to form a bearish pattern called the death cross. Traders consider the pattern a sign of negative market sentiment and a sell signal.
A sell-off might force DOGE price to seek support near $0.072, which the bulls seem to be defending aggressively. But, if the bears manage to breach below immediate support, chances are DOGE price could shed nearly 13% from current levels to drop to $0.067 before recovering.
On the other hand, the momentum oscillator MACD is forecasting bullish signals for the DOGE crypto token.
Negative bars on the indicator’s histogram are contracting, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving towards the MACD signal line (9-day EMA of MACD). When the MACD line moves above its signal line, it will form a bullish crossover.
The buy signal might attract traders to the market, helping DOGE price challenge resistance near $0.08. Moreover, a break and hold above immediate resistance might help establish trust in the uptrend.
As a result, DOGE price could target the resistance confluence of the 200-day EMA (green wave) and 50-day EMA (purple wave) near $0.087 before downside corrections pare gains.
Like other cryptocurrencies, Cardano’s ADA token had a bad year at the office in 2022. The crypto token is down 80% since Jan 2022, highlighting the bearish pressure on ADA. Nevertheless, the Cardano token registered a minor jump of 3.53% on Dec 23 to reach a high of $0.264 before bears pushed down prices.
Meanwhile, the relative strength index for ADA re-entered the neutral region after being oversold since Dec 16. Although oversold RSI levels usually forecast a trend reversal, the strong bearish pressure on the Cardano cryptocurrency means a strong uptrend might take some time.
Furthermore, the downward-sloping EMA trendlines and an RSI below 40 (31.04 at press time) emphasize the bearish pressure on ADA price action. As a result, the Cardano crypto price might fall to test support near $0.25.
If the immediate support fails, ADA price would likely drop more than 10% to reach $0.232 before recovering.
Conversely, if bulls successfully defend immediate support and push off from there, ADA price could reach $0.27. A break and hold above immediate resistance would help the Cardano crypto price needle above its 20-day EMA and reach $0.29 before correcting.
MATIC, the in-house token of Polygon, has been crabbing since Dec 17. So although bulls aggressively pushed prices up on Dec 22, the bears still seem to hold the upper hand.
MATIC’s recent price action has resulted in its 50-day EMA crossing below its 100-day EMA to form a bearish pattern called the death cross. Traders often consider the pattern an indicator of negative market sentiment and, thus, a sell signal.
As a result, the Polygon cryptocurrency token might drop to test support near $0.78. Moreover, breaching below immediate support might force MATIC price to drop to $0.74 before recovering.
On the other hand, the momentum oscillator MACD is forecasting bullish signals for the Polygon crypto token.
Negative bars on the indicator’s histogram are contracting, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving towards the MACD signal line (9-day EMA of MACD). When the MACD line moves above its signal line, it will form a bullish crossover.
Once a bullish crossover forms, buyers might enter the market. As a result, the Polygon cryptocurrency price rise to $0.82. A break and hold above immediate resistance could help MATIC price needle above the 20-day EMA (red wave) to reach $0.85 before correcting.
Polkadot’s native token DOT prices fell more than 83% in 2022. Although DOT managed a minor recovery after closing on Dec 22 with a 0.89% gain, the Polkadot cryptocurrency was in the red on Dec 23. DOT price dropped nearly 2% to reach a low of $4.45.
Moreover, the downward-sloping EMA trendlines highlight the bearish pressure on the Polkadot crypto.
If the downtrend continues, the DOT crypto could see prices fall to test support near $4.41, near multi-week descending trendline support. If the immediate support fails, the cryptocurrency token price might drop to support near $4.13 before recovering.
Meanwhile, the relative strength index for DOT remains close to the oversold threshold, with a value of 31.89 on the daily charts. Oversold RSI levels often precede a bullish trend reversal. As a result, buyers often enter the market when RSI becomes oversold.
Once that happens, DOT price might rise to $4.65. A break and hold above immediate support could help the Polkadot crypto price rise to challenge resistance from its 20-day EMA (red wave) near $5 before downside corrections pare gains.
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A Delhi-based Markets writer, I did my bachelor’s in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.
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