xrp cryptocurrency price

Bitcoin, Ethereum, And XRP Enter Downtrend With Few Signs Of Slowing

Bitcoin, Ethereum, And XRP Enter Downtrend With Few Signs Of Slowing
Written by publisher team

The cryptocurrency market continues to bleed as investors press the panic button.

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  • Bitcoin is holding above the 100-day moving average while whales are selling.
  • Ethereum provides a sell signal shortly after hitting a new all-time high.
  • Ripple’s legal issues in the US continue to drive the price of XRP.

And, I faced a bear market last week. And while some investors already bought the dip last weekend, prices continued to fall without any significant support ahead.

Bitcoin holds above weak support

Investors are trying to catch a falling knife. Over $1.25 billion BTC long trades were filtered across the board late last week.

Despite the explosion, Bitcoin’s decline shows no signs of stopping.

The 50-day moving average on April 18 marks the first time in seven months a turning point for bitcoin’s bullish trend. The major cryptocurrency has since fallen by 15.30% and is trying to hold above the 100-day moving average at the time of writing.

The growing downward pressure in the spot markets could prove disastrous as the next critical demand wall is represented by the 200-day moving average at $35,000.

The Bitcoin Supply Allocation Chart adds credence to the pessimistic outlook. The number of addresses containing 1,000 to 10,000 BTC has decreased by 0.37% in the past 48 hours. Nearly eight whales left the net during this short period.

The recent decline in the number of large investors behind Bitcoin may seem insignificant at first glance. However, when considering that these whales hold between $50 million and $500 million in bitcoin, a sudden spike in selling pressure can translate into millions of dollars.

BTC Supply Distribution

Despite the bleak scenario, Market Cap to Realized Value (MVRV) indicates that Bitcoin has fallen into the “Opportunity Zone.” This basic indicator measures the average gain or loss of addresses that have acquired BTC tokens in the past month.

Every time the 30-day MVRV moves below 0%, the bullish impulse tends to follow as most of the coins in circulation are at a loss. The lower the MVRV ratio, the greater the pressure for the next purchase.

The 30-day MVRV was hovering at -13.93%, indicating that the price of Bitcoin is undervalued. The last time this scale on the chain reached this low was in mid-March 2020 then Black Thursday, which leads to a full price recovery.

BTC for 30 days MVRV

As long as the 100 day EMA holds, Bitcoin may have a chance to bounce back. But the pessimistic scenario will not be invalidated unless BTC regains the 50-day moving average at $57,000 as support.

Ethereum flashes sell signal

Ethereum made headlines after to a new all-time high of $2650 recently. The bullish impulse appears to have been caused by a significant increase in the number of whales on the net. Nearly 24 addresses with 10,000 to 100,000 ETH were created between April 17 and April 22.

The achievement was met with panic selling among investors after CNBC issued a statement Transfer Alleging that US President Joseph Biden is planning to raise the capital gains tax to 39.60% for Americans who earn more than $1 million.

The sudden rise in downward pressure has sent Ethereum’s market cap down more than 20%, losing 540 points in just a few hours. Now, the Tom DeMark (TD) sequential indicator is predicting that Ether is preparing for a correction further.

This technical indicator recently provided a sell signal in the form of a green nine candle on the 3-day chart of ETH. The bearish pattern predicts that Ether is heading towards a 1-4 day candlestick correction before resuming the uptrend.

A look at the 3-day chart of Ethereum reveals that the TD setup was incredibly accurate in predicting local tops on the altcoin’s direction. The three sell signals provided by this indicator have been validated since August 2020, which led to significant bounces.

ETH/USD 3-day chart

IntoTheBlock’s Global In/Out of the Money (GIOM) model estimates $1,900 to play a significant role in the direction of Ethereum. Based on the transaction history, this is the biggest demand barrier under this alternative digital currency.

Here, approximately 2.30 million addresses were previously purchased, approximately 17.80 million ETH. This area could absorb some selling pressure, preventing Ethereum from dropping further.

However, a breach of this support barrier could prove disastrous for those betting on the upside. GIOM Groups shows that the next big demand wall that fuels Ether’s upside is around $1600.

global in/out money

global in/out money

Given the unpredictability of the cryptocurrency market, a bullish outlook cannot be excluded from the question.

The GIOM clusters model shows that there is only one major barrier to Ethereum. Nearly 970,000 addresses own 4.70 million ETH at a price of $2,400.

Closing the 3-day candle above this resistance level may invalidate the bearish expectations and lead to further gains.

XRP Driven by Ripple’s Legal Uncertainty

Market participants seem to have FOMO in XRP after judge Sarah Netburn to reject The US Securities and Exchange Commission (SEC) has access to the banking records of Ripple executives.

The massive increase in bids behind this coin drove its market cap by nearly 240% in ten days, from a low of $0.58 to a three-year high of $1.96.

From a technical perspective, XRP From the inverted head and shoulders formation that has been developing on the weekly chart since mid-June 2018. After crossing the neckline of the pattern at $0.60 on April 4th, it became the fourth largest ballistic cryptocurrency.

Now, XRP appears to be in a no-trade zone between the 78.6% and 61.8% Fibonacci retracement levels. Another increase in buying pressure that allows this altcoin to close above the overhead resistance at $1.60, could lead to another 100% rally towards the January 2018 all-time high of $3.30.

This target is determined by measuring the height between the head of the pattern and the neckline and adding that distance to the top from the breakout point.

XRP/USD weekly chart

Despite the optimism surrounding the XRP community, Ripple has yet to come out of its legal battle against the SEC.

Financial Supervisory Authority recently Accused The inconveniences start in the distributed ledger. It alleged that the company requested more documents than was legally necessary in an attempt to “ignore the restrictions.” [the court order] And to engage the Securities and Exchange Commission in unspecified discovery disputes and…document review. “

Until Ripple’s legal issues are resolved, investors should monitor the 61.8% Fibonacci retracement level at $0.90. A breach of this support level could lead to a retest of the inverted head and shoulders neckline at $0.60.

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