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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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Will the autumn be hot for the crypto currencies?

Will the Autumn Be Hot for the Crypto currencies: Looking for Bears, May be?

The traditionally holiday August month was not at all quiet in the crypto currency market. But the crypto market performed relatively well over the past month. The positive price action came after Bitcoin was able to prevent a potential drop below $ 9,000, finding support above $ 9,300. The entire market capitalization of crypto currencies responded positively, posting an impressive correction from values ​​below $ 250 billion to highs above $ 278 billion.

And with the beginning of September, we also saw another crazy week during which Bitcoin jumped 6.63%. Once again, we had comments from central bankers and exchanges. Bitcoin is currently taking the lion’s share of the market capitalization. Its market dominance is steadily increasing, reaching levels above 70%. The main digital coin is now struggling with very strong resistance and, at the same time, a psychological level at $ 10,000. Since the end of the bear market in August, Bitcoin has made a pretty big recovery in a relatively short period of time. So, it is not surprising that we are now seeing a process of consolidation.

At the same time, the altcoins attract a more ambiguous reaction. In this sector there are many more so-called “sad bears.” This weekend showed a very unexpected jump in Altcoins prices: at one point they were apparently rising as Bitcoin was falling. That is why today I would like to draw your attention to them and what we should keep in mind as autumn approaches.

 

What problems do Altcoins face?

Altcoins have always been more volatile. In a short period of time, newly created assets generate huge profits, with increases of 1,000 or even 10,000 times occurring within weeks or even days.

But in 2019, the altcoins seemed to have lost their luster – and in most cases they could even be considered as no-go assets. The first reason is that volumes continue to decline and with a few exceptions, the Altcoins market is in decline. Altcoin price has returned to levels from before the big rally in 2017, while Bitcoin market cap dominance is now over 70%. This once again establishes a more traditional relationship between BTC and Altcoins.

For most Altcoins, the combination of delisting and reduced interest resulted in almost insignificant trading volumes. Only a handful of coins receive inflows from Tether markets and these coins manage to retain some of the 2019 profits.

There is no way also to ignore the strict regulations. For years, the crypto currency market has been free to all. This allowed the creation of coins and tokens with extremely creative economic models. But regulators started to take notice and monitor assets that can be considered unregistered securities. Stock exchanges quickly noticed the worsening climate and began to pruning their choice of altcoins. The loss of interest from Korean investors also hurt some of the coins, which had previously enjoyed fairly active trading at a premium.

And let’s not forget that all eyes are on the price of BTC, which is still at a crossroads and yet to go through a dramatic rally. If that happens, some Altcoins may also spark optimism and be appreciate on the back of BTC. But since the leading coin is still struggling with the $ 10,000 level, there is enough uncertainty that makes buyers more reluctant to touch the Altcoins.

Another factor I would like to highlight is the change in the profile of crypto traders. In the past, there were periods of hyper activity that attracted new enthusiasts to the crypto space. But as search engine statistics show, the wider public is no longer so interested. Now the crypto space is made mostly of insiders and they are more skeptical of big promises.

In conclusion, I can only say that, despite all the aforementioned factors, many new projects are emerging on the crypto currency market every day. That’s why I think the autumn for cryptos will be quite “hot” and the picture can change quickly. So, follow our next technical analysis to keep update with the latest developments in the crypto currency market.

 

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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