November was a decisive month for the cryptocurrency market, and December is expected to bring more of the same. Let’s explore some top cryptocurrency predictions for December.
The price of Ethereum has seen significant growth since October. Despite the upward trend, the pace of increase has lagged behind Bitcoin and many other altcoins. However, Ethereum’s price finally broke through the $2,000 resistance level last month, confirming it as support. The continuous uptrend indicates that this breakout is not an anomaly like in April (red circle). The Relative Strength Index (RSI) weekly indicator provides an interesting insight. When assessing market conditions, traders use the RSI to determine if the market is overbought or oversold and whether to accumulate or sell an asset. If the RSI is above 50 and trending upwards, the bullish camp still holds the advantage. However, if the RSI is below 50, the opposite is true. Currently, the RSI is rising and above 50. More importantly, it has just entered the overbought zone (green zone). In the previous cycle, the move into the overbought zone (vertical green trendline) occurred before the entire rally to an all-time high. The nearest resistance level is currently at $3,000, which is over 40% higher than the current price. If the current cycle mirrors the previous one, Ethereum’s price could reach that level this month. However, closing weekly candles below the $2,000 area would invalidate this trend, potentially leading to a 30% drop to the next closest support at $1,600.
Bitcoin Dominance (BTCD) has been on the rise since September 2022. In June 2023, it surged from the longstanding 48% resistance area that had been in place for two years. It has seen significant gains since then. However, BTCD is approaching a critical resistance area between the 0.5-0.618 Fibonacci retracement levels at 56%-60%. This resistance zone could act as a local top. Additionally, the weekly RSI indicator has been in the overbought zone for 266 days. Previously, the longest period it stayed overbought was 133 days (marked). This led to a local top and a significant downturn. Consequently, if BTCD is rejected at the 0.5-0.618 levels, it could drop by 12% and return to the 48% area. Despite this bearish prediction for BTCD, closing above the 0.5-0.618 Fibonacci levels could lead to a 30% increase towards the next resistance at 72%.
SNX, a lesser-known altcoin, has the potential to be one of the top-performing altcoins in December. This is due to its breakout from long-term horizontal and descending resistance levels. SNX’s price broke out from the descending resistance trendline in June and subsequently from a 550-day horizontal resistance in November. Moreover, the weekly RSI indicator has nearly entered the overbought zone. Historically, this move has led to parabolic increases and all-time highs. The nearest upcoming resistance is at $7.30, which is over 90% higher than the current price. Despite this bullish outlook for SNX, closing below the horizontal support at $3.20 would invalidate the breakout. In that case, SNX’s price could drop by 50% to the nearest support at $1.90.