Bitcoin must break above $ 7,000 again for a chance to recover
Tuesday was a mixed day for the major cryptocurrencies on the market. Monero’s XMR rose 2.95% to lead the way on the day. Ripple XRP (+1.23%), Tezos (+1.45%), EOS (+1.65%), Ethereum (+1.96%) and Binance Coin (+2.07%) also finished the day green.
On the other hand, Chainlink lost the most and dropped 2.48% in the last 24 hours. O the negative territory it was followed by Bitcoin Cash SV (-0.58%), TRX (-0.34%) on Tron, Bitcoin Cash ABC (-0.16%), and XLM on Stellar (-0.04%).
At the time of writing, total market capitalization was $ 197.55 billion, while 24-hour trading volumes were $ 119.04 billion. Bitcoin dominance has remained stable at about 64.1% level so far.
Technically, BTC/USD bears remain in control as the price dropped from $ 6,970 to $ 6,768 yesterday. We don’t have strong support levels below, so you shouldn’t be surprised if the price decline even further. The pair is currently approaching its 50-day SMA.
On the upside, there are two strong resistance levels at $ 6,945 and $ 7,200. The first is a one-day 38.2% Fibonacci retracement level and the upper curve of the one-hour Bollinger Bands. Finally, the $ 7,200 level provided strong support in November and December 2019 before being broken in March.
Stellar Foundation launches a new donation campaign for the COVID-19 crisis
Lumen (XLM), currently the 13th largest digital asset with a total market capitalization of $ 984 million, was trading at $ 0.0483 early on Wednesday. The coin also reported an average volume of $ 513 million over the last 24 hours.
XLM/USD has great potential for growth as it trades above the main bullish trend line of the daily chart. And in this case, the $ 0.0500 level remains in focus.
Since early April, the cryptocurrency has gained positive momentum after the Stellar Foundation launched the Lumenthropy project. The project is based on Stellar Development Foundation (SDF) and is for combating COVID-19, using XLM tokens as a donation to several charities. The organizations that can benefit from it are – Unicef France, the Tor Project, Heifer International, Watsi, Freedom of the Press, and Women Who Code. The foundation thus calls on the community to contribute to the project and send their coins, which SDF would support.
The first resistance is seen at $ 0.049, where is the 50% Fibonacci retracement level of the recent drop from $ 0.0524 to $ 0.0455. Successful breakthrough and daily close above this level can send the bulls up for a test at the $ 0.0520 main resistance zone. Then the focus will move to $ 0.0532 (high from 10th March before the crash).
But if the price fails to break above $ 0.049, it is possible to see a test of the upside trend line on the daily chart. It is located at 0.04730, where the 23.6% Fibo level is also found. A clear break below this support area may increase the downside momentum to $ 0.0450. The next major support is close to $ 0.0430, followed by $ 0.0400.
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.