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The bears took control again, lowering the price of cryptocurrencies

The crypto market falls again with Bitcoin and all the significant altcoins on the red territory. The total capitalization of digital assets in circulation declined from $ 124 billion to $ 121.4 billion on Wednesday. It seems that the short-term recovery is already over. And the market resumed its downside trend against of the lack of fresh, positive drivers.

TRON (TRX) is one of the most losing coins. The cryptocurrency lost nearly 5% over the past 24 hours, trading at $ 0.0237 at the time of my writing. The scandal around the TRON Accelerator contest is gaining momentum and seems to create additional downside pressure on the coin.

A more significant loss, however, was realized yesterday by Ethereum, collapsing by 20% in the last seven days. The Smart Contract Audit, performed by ChainSecurity, revealed critical vulnerability to the Ethereum Improvement Proposal (EIP) 1283. The weakness has been called the ‘Re-Entry Attack’. It allows hackers to re-enter the same feature multiple times without notifying the user. This is a dangerous loophole that can lead to the update being introduced, leading to theft of the cryptocurrency. As a result, developers decided to postpone the update for an unspecified period.

ETH/USD is currently trading at $ 120.02, down 5.90% yesterday. Although the downside pressure is gaining momentum, the coin still holds the third place at market value. And the Constantinople’s delay may increase the bearish pressure during the European session.

On the other hand, Ripple is quite stable at $ 0.3250. The coin has been unchanged since the start of the day and has declined by only 0.79% on a daily basis. The price action of XRP depends on the overall sentiment of the crypto market, although it has recently been less volatile than other significant altcoins.

The price remains closed in the trading range between 0.3157 – 0.3353, which we see during the last five sessions after the deep decline on January 10th.

The upward momentum of XRP/USD is limited by the downside trendline outlining the fall of 6th November 2018. The bulls were rejected in every attempt to break it – in November, December, and most recently on January 10th.

Over the current price, the first resistance is at $ 0.3353 (the upper limit of the range). The second resistance level is $ 0.3435 (daily SMA50). XRP/USD bulls need to break the $ 0.3400-0.3500 area to see an increase of the upside momentum to the psychological level $ 0.36. But to get it, XRP/USD will first have to break SMA100 and SMA200.

On the downside, the first support is seen at $ 0.3200. If the price can make a clear break below that level of support, the bulls will lose all momentum, and the pair will enter a strongly downward environment. In that case, the bears should head to testing the support of $ 0.3108 (the bottom of the range from Monday), followed by 0.2866.

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.

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