Today, we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies. At the previous time, the volume of our portfolio slightly increased. This was primarily due to the sharp rise of XRP by almost 20%.
As you can see from the table, the last 7 days turned out to be negative for our portfolio. The volume has decreased by 6.5% and now it amounts to $55,778. All assets showed negative dynamics and dropped in price. Perhaps, this is due to the market participants staying away during the New Year holidays.
This time, CRPT lost the least as its price fell by 3.59%. The chart has seen no major changes since early December. The price remains in a sideways channel, which means that tokens are still being accumulated. We expect the same trend continue for another couple of weeks.
Next came Bitcoin with its 4% drop being less significant compared to that of the previous week. The original cryptocurrency lost the most during the last 2 days when the chart plummeted more than 8%. The price went down to the local support level to the $45,000 – $46,000 again and Bitcoin reached the upper border of the descending channel. If the price breaks goes down even further, then we may see it plunging to $40,000.
Litecoin fell by 7.43%, which is almost a double drop. The LTC chart approached the most important resistance level at around $140. Meanwhile, an overall picture looks depressing. LTC stagnated and it is now copycating Bitcoin’s behaviour. If the chart breaks the $140 level and consolidates below it, then it’s highly possible that we will see a fall to $100.
Ethereum lost 8.15% of its value. During this week, the price has bounced back above $4,000 several times, but then crashed below this mark again. Besides, over the past 2 days, the chart has dropped by 10% and it currently looks rather weak. We expect to see Ethereum drop even further to $3,400 within a few days.
XRP is the chief loser. The price has risen by 20% a week ago and it was the only asset to demonstrate such an impressive growth. That is why the ongoing collapse is considered another price correction. The XRP chart structure is completely bearish. We expect to see the price moving down to the lower border of the channel at $0.72.
This week, our entire portfolio declined synchronously, and therefore, all assets remained in acceptable shares. So, we will not rebalance the portfolio today.
The last month of 2021 turned out to be extremely negative for the entire market. The vast majority of coins were in a downtrend. The level of fear was critical, which affected market participants. Nobody wants to buy cryptocurrencies, as they are afraid of a further fall. Let’s see if the situation changes in the new 2022.