Crypto Weekly Outlook: November 22, 2021

The total crypto market has trended sideways since the weekend with the total crypto market cap currently sitting at $2.61T according to CoinMarketCap. Last week’s major drop is being viewed as a healthy correction by most market analysts. The unwinding of leverage and profit-taking has shifted the market sentiment from extreme greed to fear and now is sitting right in the middle of the neutral zone as determined by the Crypto Fear & Greed Index. This could possibly signal that the carnage is now mainly over, setting up a new run after the current period of consolidation finishes. That being said, all top ten cryptocurrencies experienced a weekly loss of around 10% (excluding stablecoins) and the new week has started with each one in the red aside from Solana.

Bitcoin (BTC) finished last week down 10.36% at $58,691. BTC was rejected over the weekend at the $60K level multiple times. Some analysts still believe that Bitcoin will follow historical trends and finish the month with impressive gains, but time is not on that view’s side. On a positive note, the drawdown was mainly caused by weak hands offloading newer coins, while long term holders and miners have been holding throughout the decline. Regarding the network fundamentals, the hash rate has stayed near all-time highs while the difficulty is expected to rise slightly at the next readjustment on November 27. However, on a concerning note, the National Bureau of Economic Research just put out a study concluding that the leading 10% of miners accounted for 90% of the asset generation while only a fraction was responsible for 50% with the implication being that a 51% network attack is more possible than previously believed.

Looking ahead price wise, a strong support zone is present between $50,000 and $52,500. Above that there is support at the 23.6% FIB of $53,628 and again at $54,115. Then there is a further demand wall near last week’s low around the $55,600 area. Resistance exists at the psychologically important $60K level as well as at $60,229, the 50D SMA of $60,187, $61K, and $64,806. Bitcoin is trading at $58,275 as of this writing.

Ethereum (ETH) ended last week down 7.86% at $4,262.99. It briefly fell through the psychologically important $4K level multiple times, but the bulls stepped in and the price recovered each time. In some negative press for the smart contract leader, crypto billionaire and CEO of Three Arrows, Su Zhu, recently tweeted that he has “abandoned” Ethereum despite supporting it in the past. His main reason was high network fees which have risen to unsustainable heights. However, it’s important to remember that Three Arrows Capital was one of the investors in Blizzard, a newly created fund with the purpose of developing Avalanche, one of the Ethereum killers.

Looking ahead on the technical side, there is strong support at the $3,800-$4K area while resistance exists near $4,350, $4,868 and at $5,075. The present battle appears to be centered on the $4,350 area. ETH is trading at $4,237 as of this writing.

After Cardano (ADA) tested its major support of $1.72 last week, what’s in store for the week ahead? Will it reclaim the crucial $2 level or will it sway with the fortunes of Bitcoin like most other altcoins? There are a few key events to be aware of this week that could impact ADA’s performance. The most important being the upcoming listing on Europe’s largest crypto exchange by trading volume, Bitstamp.

According to Bitstamp, on November 23, “Deposits and withdrawals open but trading is not enabled yet.” On November 24, around 11:00 A.M. UTC, “You will be able to place and cancel limit orders, but they will not be matched.” Then later on November 24, around 03:00 P.M. UTC, “Order matching will start and trades will be executed normally." Lastly, “once the order books gather sufficient liquidity”, Bitstamp will “enable all order types and card purchases for the new trading pairs as well.”

The other upcoming event investors should be aware of is Cardano’s monthly 360 event to be held on November 25 at 16:30 UTC. During the event, the latest updates and developments will be shared from across the Cardano universe, covering both tech and community news.

How will Ripple’s XRP perform this week? In some positive news, it was recently learned that the XRP Ledger, Ripple’s standard for NFTs, is on its way to devnet. Investors also shouldn’t forget that less than two months ago, Ripple announced its $250M NFT Creator Fund and it has now launched. On the technical side, XRP has done well to stay above $1 during the recent drop as it continues to act as strong support. Below the $1 level, support is also present at $0.96, while resistance is present at $1.20. XRP is trading at $1.06 as of press time.

Avalanche (AVAX) has been a big winner over the past week, defying the bearish momentum while continuing to reach new all-time highs. AVAX recently overtook Shiba Inu and Dogecoin in the market cap rankings to claim the #10 spot as of this writing. Just yesterday it hit another all-time high at $147 before investors finally decided to take some profits. The surge in price was likely aided by the partnership with big four accounting firm Deloitte.

AVAX has support at $81, $106, and $110 while resistance is present at $147, $160, and at the 261.8% FIB at $175.58.

How high can Crypto.com Coin (CRO) go? It has already moved into the #13 spot in the market cap rankings, sitting at $19.3B. CRO hit an all-time high over the weekend just under $0.80 on the back of continued enthusiasm due to CRO securing the naming rights of the famous Los Angeles Staples Center, home of the Los Angeles Lakers among other sports franchises. Crypto.com has around ten million users, but this past Friday, its CEO, Kris Marszalek, predicted that his exchange would have a global user base of one billion people by 2022 - quite an ambitious goal. Despite the recent positive sentiment, according to crypto analytics firm Santiment: “Overall, very nice price action from CRO after consolidating for months. However, it’s likely to cool off before the next run. On-chain/Social metrics are also indicating that quite a number of people FOMO’d in, and will likely act as sell pressure if things go south.” CRO is trading at $0.7528 as of press time.

Don’t sleep on The Sandbox (SAND) this week. On November 29, after four years in development, the alpha version of its metaverse product will finally be launched. The alpha

will be a multi-week play-to-earn event where users will be able to earn up to 1,000 SAND and exclusive NFTs. 5,000 alpha passes will be handed out to users to experience the Alpha. Investors should be cautious of any sell-the-news type action once the event actually launches due to SAND’s massive rally over the past month. As of this writing, SAND is trading at $4.38.

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