Author: Silvia Velcheva

XRP faces huge resistance against USD

The cryptocurrency market is dominated by the Altcoins this week. Most major coins are traded in a green zone with Bitcoin SV and Etherum Classic among the growth leaders. The market capitalization of cryptocurrencies increased slightly to $ 241.84 billion, while the average daily trading volume declined to $ 88.64 billion. Bitcoin’s market dominance was 66%.

Ethereum (+1.52%), Monero’s XMR (+1.84%), Ripple’s XRP (+1.47%) also found strong support from the bulls yesterday. Bitcoin Cash ABC (+0.73%), EOS (+0.96%), Litecoin (+0.65%) and Stellar’s Lumen (+0.32%) remain on the tail.

This morning, however, the massive movements we experienced on the crypto market last week not only subsided but also turned into downward corrections. Therefore, the price of Ripple is trading 0.37% lower on Wednesday. The Asian session faced sales pressure, and the European session started amid the same bearish activity.

 

The technical picture of the XRP of Ripple

On a daily chart, we can see how the XRP/USD showed a rebound above the $ 0.18 support, the bottom since mid-December. The pair rallied 0.35% in January and hit a new high of $ 0.2540 this weekend.

As the chart shows, this resistance can be seen as a decisive breakthrough area. The price of the XRP is holding above the $ 0.25-0.28 area as support in 2018 and 2019, making it a hard hurdle to take. Additionally, adjusting above the $ 0.24 key level may also take longer. The 100-day SMA is located there.

If these important levels of resistance do not manage to be overcome, the bulls are likely to become discouraged, losing balance and we may see a further fall in the price to $ 0.22.

From a broader technical perspective, Ripple is still in the upside price channel since January. The lower boundary of the channel remains crucial in support of the short-term trend. I expect a rebound back up if 0.2310 support is tested again. This area is also strengthened by 50 SMA on the hourly chart at 0.2350 at the moment.

On the other hand, channel resistance ($ 0.2650) must be overcome to allow XRP to extend its rally to $ 0.30. A clear break above that level could lead the XRP to test the longer-term bullish target at $ 0.48.

The MACD on the hourly chart is slowly losing momentum in the bullish area. At the same time, the RSI indicator struggles to stay above the 60 level of the same chart.

 

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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The Bitcoin SV bulls surprised the crypto market with a wild rally

Bitcoin and the major Altcoins have started their journey to the moon

Bitcoin had a pretty good start to 2020 after the unsuccessful December holiday season. First, the US-Iran conflict, which has escalated since January 3, has led to a rise in the price of gold, as well as of Bitcoin.

After the de-escalation between the two countries, the price of Bitcoin cooled to about $ 7,600. Now, however, with Bitcoin SV’s curious rally lifting the entire market, Bitcoin has also gained about 6%, breaking above $ 8,500.

For the other top 10 cryptos, Tuesday was a particularly bullish day. Bitcoin Cash SV led everyone, rising 145% to $ 450. Bitcoin Cash ABC (+30.69%), EOS (+22.09%), Ethereum (+15.51%), Litecoin (+17,81%), Ripple’s XRP (+10.68%) and TRX (+13.38%) also rebounded.

Earlier this week, cryptocurrencies’ total market capitalization rose from $ 215.38 billion on Monday to Tuesday’s high of $ 244.24 billion.

Bitcoin dominance has collapsed to 65%. Trade volumes also jumped to $ 168 billion before settling down.

 

Why did Bitcoin SV made such rally?

Bitcoin SV is founded by controversial Craig Wright, who has long claimed to be the inventor of Bitcoin, Satoshi Nakamoto. Although his claims have been ridiculed in the crypto community, he has recently had a positive decision in his court fight. Namely, by February 3, 2020, he was given the deadline to provide the private keys that unlock the Tulip Trust, which holds some billions worth of some of the earliest mined Bitcoins.

If Craig Wright is able to prove that he has access to the early stashes of Bitcoin (and that he was part of the original inventors of Bitcoin), Bitcoin SV should go up significantly. It’s expected that Wright could sell Bitcoins to support BSV.

 

The hunt for higher support for Bitcoin SV has now begun

The digital asset is trading at $ 353 at the time of writing. However, it is not clear how far the current correction can go. The Relative Strength Index (RSI) suggests that Bitcoin SV may further reduce gains.

On the other hand, the MACD trend says that bulls are in control for now. Therefore, support at $ 350 will play an important role at this stage. If this level persists, it will stabilize the price of Bitcoin SV at higher levels and, on the other hand, avoid further losses to $ 300.

With a clear break and closing price above the highest highs, the appreciation is likely to continue. However, if we doesn’t see a close above this area on the daily chart, a retracement to $ 235 or $ 175 may follow.

 

Does Monero look ready for the rally?

The only coin that shows no enviable power is the Monero (XMR). Monero gave some signs of strength as the price broke the 7-month downside trend. In addition, the $ 55 level was successfully breakout.

While Monero manages to stay above the $ 55 support, we will probably see continued growth to $ 100.

In general, strong bullish momentum continues with the Altcoins. However, Bitcoin and Ethereum did not make the higher peaks that are so necessary for the other Altcoins to follow. Until then, enjoy these movements!

 

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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Geopolitics set the tone for the crypto market in the first days of 2020

Iran’s war boosts crypto market demand during the first week of the New Year

The new year starts with the improvement of the mood in the crypto sphere. The war between the United States and Iran affects all countries around the world. Some people worry that this could trigger World War III. On the other hand, the US stock market remains volatile amid fears that Iran’s retaliate could cause chaos.

The cryptocurrency market seems to be taking advantage of the US-Iran situation to gain momentum. Mostly Bitcoin presents itself as a safe haven for investors. Especially, since it is decentralized and can function without the censorship of any government. The rest of the cryptocurrency market responds accordingly in tandem with Bitcoin and the bullish momentum is likely to continue.

 

Bitcoin renews hopes for 2020

The main digital asset has jumped by 5.52% in the last 24 hours. Accordingly, Altcoins also show strength. Chainlink (LINK) gained 15.70% growth and Litecoin (LTC) 5.83%.

The total market capitalization of cryptocurrencies is now at $ 217.7 billion and Bitcoin’s dominance rate has risen to 69.1%.

Technically, Bitcoin would have to stay above $ 8,300 to see the first resistance test at $ 8,516.3/600.

We can expect the news to have a significant impact on the day, with volatility likely to come from events in the Middle East. I believe that Bitcoin could break through the second major level of resistance if the USA responds to Iran’s attacks against military bases in Iraq. But that region of $ 8,877- $ 9,000 would probably limit the bullish momentum in the event of a prolonged daytime rally.

If the price fails to hold above the first resistance, the main digital coin may recede.

 

Litecoin with a rally of 5.83% on Monday

LTC/USD is moving in a short bullish channel with the upper limit created by the upper line of the 4-hour Bollinger Bands at $ 48.00. Support was created by SMA 50 on the daily chart and the mid-line of the 4-hour Bollinger Bands around $ 44.00. A convincing breakthrough and movement in either direction should create strong momentum. This should allow further price action to develop in the direction.

Technically, we had a bullish crossover of moving averages on the 4-hour chart. As the SMA 50 breaks above the SMA 200, this indicates a continuation of the upward movement. On the upside, $ 50 could be the next target for the bulls. A clear breakout above this psychological level will open the doors to the $ 50.70 resistance. There is located the 100-Day SMA. LTC/USD has been trading below this SMA since mid-July 2019, which means that bulls may have a hard time taking it out.

On the other hand, a sustainable decline below $ 44 will turn short-term prospects to downward and will put $ 40 back in focus. This support was followed by the low for 2020 at $ 38.74 and the bottom line of the daily Bollinger Bands – $ 37.60.

 

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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Pre-Christmas sales surge for BTC, ETH and XRP

Pre-Christmas slaughter and sales continue to wreak havoc on the cryptocurrency market at a time when investors are expecting significant upturns. For the last few years, cryptocurrencies have begun to search for “bottoms” in November and use the momentum generated in December to rebound to higher levels.

This month, however, the entire crypto market is bloody, driven by the main cryptocurrency. Bitcoin led the market in another round of downturns, testing support at $ 6,500. Ethereum plunged below $ 130 to test the decisive $ 120 support. Ripple is attempting to make a reversal after falling to a 2-year low at $ 0.1790.

In the last 24 hours, the entire cryptocurrency market is saying goodbye to $ 10 billion, wiped off. And the market capitalization is $ 177 billion, compared to from 187 billion a day earlier. On the other hand, the volume of trade increased significantly from $ 69 to $ 82 billion, reflecting the extreme activity of sales.

 

Bitcoin technical analysis

Despite sales and declines, the market price of BTC in December 2019 is still over 100% higher than the bottom reached in December 2018. The ratio of BTC is still upward in the long run.

But now the asset is in the phase of highly active speculative trading. The Bitcoin Index of Fear and Greed still indicates exceptional levels of fear at 24 points. In the short term, bearish attitudes seem to prevail. So, I expect the decline to likely continue as long as the RSI indicator remains within the oversold area. In addition, the price moves below the 50-, 100- and 200-day SMAs.

While 50 SMA remains below 100 SMA on the 4-hour chart, the chances of recovery may take some time. Therefore, Bitcoin will be at risk of possible further losses. The bears’ next goal is to support $ 6,400, followed by a psychological level of $ 6,000.

In order to regain control, the bulls will have to break the resistance provided by the downtrend line on the daily chart, which is in the region of the important resistance and the round number $ 7,000.

 

Where is the next support for Ethereum?

The downside movement approached the next support at $ 120, though it then adjusted slightly upside. Obviously, it is still possible to see a further decline due to the oversold value of RSI. A clear break below 120 will direct the bears to the next important support at $ 116.00 – 115.85. A persuaclearsive breakthrough (in case of increased sales throughout the market) below this area will bring the $ 112.60 level to focus.

The second-largest cryptocurrency should enter an uptrend if it manages to recover above the two key resistances at $ 130 and $ 140. Only then will the risk of testing the psychological $ 100 level will be completely prevented.

 

XRP/USD hit a 52-week low

The XRP is currently trading above $ 0.018 after falling below $ 0.20 for the first time since October 2017. Ripple is definitely an example of the worst performing digital assets in 2019. On a daily chart, RSI has changed its slump from the oversold zone and trying to have an uptrend. If the indicator continues, XRP may recover its lost position above $ 0.20 in next sessions.

On the other hand, we do not have too many levels of support here as XRP/USD reaches its lowest level since September 25, 2017. The $ 0.1500/1485 area was the main support when the price was so low the last time in 2017. In case of a convincing break below it, we can expect a test of $ 0.1350.

 

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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