Cryptocurrency Market Activity is Increasing
The price of Bitcoin (BTC) hit another high at $ 7,924, while the bulls continue to push for a test and breakout of $ 8,000 important level.
Only 13 days are left before mining reward halving of the top digital coin and investors are hoping that Bitcoin can at least go above the 100- and 200-day moving averages (in the region of $ 8,000). This will give the Bulls the opportunity to face another key resistance level of $ 8,500 in short term.
The Altcoins also jumped alongside Bitcoin yesterday. XRP shot up with 8.77%, Ethereum (ETH) added 5.41% and Litecoin (LTC) gained 5.21%. EOS (+3.57%), Tezos (+3.51%), Bitcoin Cash (+3.32%), Bitcoin SV (+2.33%), Cardano ADA (+0.62%) and Stellar Lumen (+0.39%) also found support.
For the rest of the top 20 cryptocurrencies was also a positive day, albeit with smaller profits. The only exception was Tether, which was at a 0.01% loss at the time of writing.
The total market capitalization of cryptocurrencies is now at $ 225.6 billion, with Bitcoin ’s dominance rate at 63.7%.
XRP Bulls Crushed Psychological $ 0.20, Restoring Buyers Confidence
The XRP/USD bulls retained control yesterday as the price increased from $ 0.1947 to $ 0.2180. In the early hours of Wednesday, the pair managed to break above the upper line of the 20-day Bollinger Bands.
Currently, several technical indicators provide an upward picture for XRP. MACD is showing an increase in the momentum as the RSI rose from 57.25 to 67.75 after the price action on Tuesday. On the 4-hour chart, the price moves above the 200 and 55-day SMAs, which should provide support if the market moves away. And a break above 200 SMA on a daily chart was also very important for last week’s price action.
The nearest resistance is expected at $ 0.2288 (50-day SMA), followed by 61.8% Fibo correction. If Ripple manages to break above that Fibonacci level (61.8% correction on the drop from 0.3455 to 0.1060), the upside momentum should continue.
In other words, the recovery is expected to peak at $ 0.35 in May, mainly riding on the volume likely to be generated by speculation surrounding the Bitcoin halving.
However, as the price is now moving above the Bollinger Bands on a daily chart and RSI is entering a overbought zone, this indicates that the asset is currently overvalued and may be facing bearish correction soon. And if the retreat is deeper, XRP will likely find support at 38.2% Fibonacci at $ 0.1970. A persuasive move there will send the price down for testing the bottom of April 16 at $ 0.1750.
ETH/USD Movement Above $ 200 Can be Explosive
The price of Ethereum has also risen and, over the past 48 hours, has maintained gains over $ 190. Early on Wednesday morning, ETH/USD was able to break above the important $ 200 resistance.
Ethereum’s uptrend is supported by RSI, which is pointing up and now is at 68.74. Despite the recovery since mid-March lows, the indicator failed to reach the overbought condition (break above the 70 level). Therefore, ETH/USD still has room for growth before the reversal occurs.
If Ethereum manages to remain convincing and close daily above $ 200, upraise to $ 300 could be an option. Especially with the volatility accompanying the Bitcoin halving in May. In addition, MACD also shows a steady upward momentum.
In the event of a change in the short-term bullish trend, ETH/USD will seek asylum at $ 172.50 (the 200-day SMA) and $ 153.53 (the 50-day SMA).
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.