Cryptocurrencies to Watch for the Week of November 20
Most of the major cryptocurrencies ended the previous trading week pretty much unchanged. Bitcoin (BTC-USD) fell by 1.3% in the last seven days, and the second biggest crypto Ethereum (ETH-USD), is now down by 6.4%. This comes even though its been two weeks since the FTX disaster, the collapse of the Sam Bankman-Fried (SBF) crypto empire, which is still affecting the markets.
The crypto market, however, received a boost of hope last Tuesday, November 15, after fresh data from the U.S. Labor Departments latest PPI (Producer Price Index) report, which came in at 0.2% month-over-month against expectations of 0.4%. This can be seen as a sign that U.S. inflation could finally be slowing down, which would give the Federal Reserve some encouragement to relax its tightened fiscal policies. This, in turn, may be positive for high-risk assets such as crypto and stocks.
The biggest loser among the top cryptocurrencies was Solana (SOL). FTX was one of Solanas earliest backers and one of its biggest investors, so the entire Solana ecosystem was affected by the event. The price of SOL fell 15% in the last seven days.
As a follow-up to last weeks article, this piece will go over the cryptocurrencies to watch this week: Bitcoin, Ethereum, Ripple (XRP-USD), and Litecoin (LTC-USD).
Bitcoin (BTC-USD)
As mentioned above, the price of the number one cryptocurrency by market cap has been almost unchanged since last weeks market breakdown, and therefore, the analysis remains unchanged.
At the time of writing, Bitcoin is trading around the $16,700 level, and if the bullish momentum continues this week, the next resistance level to watch is at $20,000. However, if the negative sentiment caused by the FTX scandal continues to spread fear across the market, the next support for Bitcoin will be at around $11,800.
Ethereum (ETH-USD)
Ethereum was a bit weaker than Bitcoin over the past week, as the cryptocurrency is down by almost 7% during this time. The $1,000 level is extremely important for Ethereum, as not only is it a strong support area, but it is also a number that has strong psychological effects on traders.
As of now, the second-biggest crypto by market cap is trading at $1,200. If there is a continuation of the recent move higher, the next resistance level will be at $1,400. However, if sellers regain control, the next major support level is as far away as $500.
Ripple (XRP-USD)
Ripples XRP token continued to be slightly stronger last week while its price went up 3% over the past seven days. At the time of writing, XRP is the seventh biggest crypto by market cap, with a total market cap of $19 billion.
Looking at a four-hour time frame chart, traders can see that XRP is currently trading within a tight range between the support at $0.36 and the resistance at $0.395. Traders should wait for a break above or below that consolidation area for any clues as to where the price might be headed next.
In case of a break above that area, the next resistance should be around $0.43; however, if this consolidation phase breaks lower, the next support to watch will be at $0.33.
Litecoin (LTC-USD)
Last week was also a green one for Litecoin, with the cryptocurrency rallying 3.5% in the last seven days. Exactly as mentioned last week, LTC continued to push higher to reach the strong resistance at around $63.
In the event of a continuation of this move higher, the next area of resistance will be at $72. Nonetheless, if sellers regain control and push the price lower, the next support area is at $55.
Conclusion: Keep Your Eyes on the Prize
Generally speaking, December is a very strong and positive month for stocks and crypto. I believe that unless another black swan event occurs, this year should be no different.
Prices for some of the tokens are near their all-time low, and many indicators are starting to show bullish signals.
Traders should also be aware that this week is a short trading week in the U.S. due to the Thanksgiving holiday. As a result, the stock market will be closed on Thursday.
