The great sell-offs on the crypto market is entering its third day this week and the majority of cryptocurrencies are in red. Last week, there was a “bloodshed” on the market, but we saw Bitcoin and other digital assets consolidating some of the losses during the weekend.
Currently, all major coins are down, with most of them squeezed down to explore new annual bottoms. And the total capitalization of digital assets in circulation dropped to $ 144 billion, wiping another $ 15 billion over the past 24 hours.
Mass sales continue, as market participants take the position that “the glass is half empty” by interpreting all incoming news as negative.
The recent development of the crypto market – the Bitcoin Cash hard fork, which I mentioned last week, and the sacred war of two rival camps of Bitcoin ABC and Bitcoin SV, highlight the chaotic and immature nature of the industry. High volatility and low predictability make digital coins into bad storage assets, and many investors, unfortunately, have learned it in a hard way.
In addition to the whole chaos DOJ in the United States is investigating the manipulations of Tether, believing that they may have caused the strong rally in the crypto market last year. The FCA in the United Kingdom is considering banning derivatives on cryptocurrencies and the Indian government has said it is considering creating rules for the crypto space. The group, tasked by the Treasury Department of India to provide guidelines for the crypto trade and the blockchain industry in the country, is expected to announce its project in December.
At the moment, Bitcoin’s price is definitely pushed down and the Altcoins. The main cryptocurrency hit bottom yesterday at $ 4,330 and traded 5% down only for the last 24 hours.
Hope for altcoins and the crypto market I think is now hiding in the Ripple (XRP). This asset remains significantly stable against the backdrop of the worst sales in 2018. Also, during my writing, there are attempts to recover from yesterday’s bottoms in the area of $ 0.4133.
Ripple is currently priced at $ 0.4393, with the immediate resistance at $ 0.46. Bulls are targeting $ 0.5, but will also have to face the resistance at 50 SMAs in the area of 0.4780 on a daily chart. The indicators already show a cumulative upward momentum, with MACD returning to its average and baseline. The RSI indicator looked at oversold zone at 14.58 before bouncing up. Currently, the indicator value is horizontal at 50.
Keep in mind, however, that Ripple’s XRP has moved since mid-September into a set-up pennant formation on the daily chart. Given the timeframe in which the digital coin is traded within this model, we are likely to have a strong breakthrough. And it can’t be excluded that will on downside direction. The first support is in the area of yesterday’s bottom at 0.4133. A clear breakthrough under this level may cause further downward pressure for testing $ 0.30 – 0.25.
Perhaps it is now good for investors to rethink HODL with Ripple. HODL is to buy crypto assets and keep them for a while until the price increases and then liquidate them. Bitcoin fell for a week dropping from trading over $ 6,400 to levels close to $ 4,200. This denies the essence of HODL (holding). Moreover, Ethereum or Bitcoin Cash do not offer a better alternative.
This strategy must be used carefully to make sure we do not lose our money. The strategy buys on the dips requires the investor to wait until the market is established a bottom and there are signs of upside recover. That’s why I think XRP’s chart has the greatest potential to offer something like this from all the main cryptocurrencies.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.