Week of falls in the crypto market after the events that occurred during these days with the FTX cases and the SEC ruling against Ripple that have caused a chain effect that affected the entire market. $BTC has generated a lower low, breaking through the $18k support zone.
This situation leaves a scenario of fear and uncertainty, since the historical resistance zone that can act as support is between $12k and $14.5k, but after the initial breakout momentum the price has bounced back to the broken support. We will see if as a pullback to confirm the break or if, on the contrary, a zone of strength is generated in this support, leaving this low as a false one.
The situation of the dominance of BTC is very similar to previous weeks, despite the drop this week, macro support is very close and we will see if it is capable of sustaining the movement.
In the rest of the market, those tokens that have had a better recovery after the fall or those that have been less affected by it stand out, as is the case of $MATIC that despite losing -10% during the week, continues to maintain an uptrend since summer and it is already the third consecutive week in which it stands out for its weekly evolution. Despite this, we cannot rule out a repetition of the falls, as the rejection has occurred from the resistance zone I mentioned last week and the general situation of uncertainty may affect the entire market.
As can be seen, the uptrend is still in force and may be decisive for the evolution of the price, because if this sequence of rising highs and lows is lost, the downtrend would be activated and we could see bearish aftershocks.
If we enlarge the image we can see how the resistance at $1.30 is the area to beat in order to continue with this bullish trend.
On the other hand, this week I also wanted to highlight $DYDX, the governance token of the decentralized Exchange DYDX, which is one of the few tokens that closed the week in positive, approaching the weekly close with a result of +17%.
As we can see on the chart, after bouncing to the support zone of $1-$1.20, it generates an upward momentum that takes it above $2, thus breaking the short-term resistance that we see in the following 4h chart.
In this chart we can see how the market is widening in the short term, with lower lows and higher highs that could be the beginning of a change in trend, but it is still early to try to predict it. At the moment we have to focus on seeing if the breakout movement at $2 consolidates and if we see tests of the macro resistance of $2.50/$2.80 or if, on the contrary, this momentum comes to nothing and that zone of $2 is lost.
Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows our analysis and investment tools, and how they help us in our operations when making decisions.