Cryptos Break Down Below Previous Support, Then Bounce: Bitcoin, Ethereum, XRP

That spot on the price chart where “down” stopped and “up” began, some weeks or months ago, is known to analysts as the support level. Enough investors came in as buyers and reversed the downtrend. When that previous buy zone is violated — more sellers than buyers — it gets noticed by both artificial intelligence and mere humans.

That’s what happened this week to the major cryptocurrencies and it’s worth noting because of how much it affects related stocks, such as Coin Base Global and MicroStrategy

MSTR
. Both hit new 52-week lows. When Coin Base had their initial public offering last May the stock hit 400 — it now trades at 58.

Related articles

Is It Possible For Calyx Token (CLX) To Be As Successful As The Top Coins Like XRP (XRP) And TRON (TRX)?

28 May 2022

Elon Musk Gets Warning about Dogecoin and SEC from Crypto-Law Founder

28 May 2022

Involvement with the cryptos has been a poor choice so far this year.

ADVERTISEMENT

Bitcoin

BTC
. Here’s the weekly price chart:

This week’s drop below 28000 is a problem for Bitcoin as that level found buyers in 2021 and support held there. It’s bounced back above that area but once support is taken out with such heavy volume, it may be difficult for this most well-known of the cruptos to sustain a move back above it. Neither the RSI or the MACD indicators suggest any kind of positive divergence.

Ether

ETH
eum. The weekly price chart is here:

This crypto merely touched the previous support levels from 2021 before the “buy the dip” crowd surfaced. As with the bitcoin price chart, neither the relative strength indicator (RSI) nor the moving average convergence/divergence indicator suggests a positive look yet.

XRP

XRP
Here’s the weekly price chart:

Ripple, as it’s known, definitely took out the previous support areas with a vengeance. It’s been unable to rise back above the 50-cent level. Note how XRP was trading up near almost $2.00 in April of 2021 and now goes for 44. These are extraordinarily volatile moves in the cryptocurrency world.

Coin Base. Here’s the weekly price chart:

The company went public in April, 2021 with much publicity and acclaim. Now, you have to wonder why. Coinbase broke support at about 160 in March and, after a brief bounce, has traveled downward on heavy selling volume. Today’s price of 69 must be quite a shock to those who bought in at 340 or so.

MicroStrategy. The weekly price chart looks like this:

CEO Michael Saylor is well-known on the internet for photos of his face featuring laser eyes, for some reason. The stock broke through the support level of 300 in early 2022 and can now be purchased at 208. Note the MicroStrategy is down from the early 2021 peak of 1300 where some investors somewhere got in.

More charts and analysis on my website:

CheapbargainstocksCheap Bargain Stocks – Find The Most Undervalued Stocks On Wall Street

Not investment advice. For educational purposes only.