xrp cryptocurrency price

BTC continues consolidation as crypto market waits

Cryptos consolidate before breaking out in 2022
Written by publisher team

  • Bitcoin price is building a symmetrical triangle with the top on June 10th if the deflation process continues.
  • Ethereum price may close in May with a long-legged doji pattern that reflects indecision among investors.
  • XRP price hits the measured head and shoulders move target and then quickly rebounds to $1.00.

The Bitcoin price contraction in the shape of a symmetrical triangle is forcing more volatility for the leading cryptocurrency in the near term. Ethereum price predictions are still unclear, but the emergence of an inverted head and shoulders pattern clarifies the short-term price structure. The XRP hammer price breakout on the 3-day chart is still live.

Argentina Becomes the Bitcoin Mining Capital of South America

Argentina’s volatile economic history has fueled a boom in cryptocurrency mining as companies and individuals seek a store of value. Lower energy rates and stricter capital controls are creating windfalls for miners in the football-obsessed country. Consumer electricity is equivalent to 2% of average income compared to two to three times in other South American countries.

Cryptocurrencies have a long history in Argentina, acting as a hedge against an economic roller coaster that has included sovereign defaults, hyperinflation, and multiple devaluations. Tighter capital controls that have accompanied the ongoing recession have reinvigorated mining in the country, pushing the value of bitcoin to nearly 6.0 million pesos on the black market versus just 3.4 million pesos at the official rate.

In April, Canadian mining company, Bitfarms Ltd. , on a deal to fix directly into a local power plant with a plan to become the largest bitcoin mining facility in South America. The company sees a country with surplus power generation due to the low level of economic activity. It is a profitable solution for power generators to sell their extra power and get paid in US dollars or Bitcoin, thus avoiding foreign exchange controls.

Even if Bitcoin suffers a new sell-off, lower energy costs will continue to make mining a very profitable business opportunity, spurring more investment in the space by foreigners and small local businesses.

Bitcoin price requires patience from investors as the pattern develops

The bitcoin price is certainly forming a symmetrical triangle on the charts, with the price now covering about 60% of the triangle. A symmetrical triangle consists of two converging trend lines that meet together on the right, forming the vertex of the triangle. Volume tends to diminish as the triangle develops, and there is rarely any evidence on the chart containing the triangle if prices are to break down or rise. Investors need to wait for the asset to finally resolve this pattern. The model captures frequency, or the “triangular zone of doubt,” according to Robert D. Edwards and John Magee.

The BTC symmetrical triangle is below the intersection of multiple levels of resistance that will challenge the bitcoin price for days and possibly weeks to come if the triangle resolves to the upside. Resistance includes the 38.2% Fib retracement of the historical rally from the March 2020 low to the April high at $41,581, the January 8 high at $41,986, the February 28 low at $33,016 and the 38.2 retracement level. % of the April-May drop at $43,331. .

The measured movement of the BTC triangle is around 30%, which creates an upward target at $51,114 from the current position of the triangle’s upper trendline, which closely coincides with the 12-hour 200 SMA at $52,605. To make a rally to the measured move target, bitcoin price needs to overcome the aforementioned significant resistance and the 50 12-hour EMA at $44,522.

BTC / USD . 12 hour chart

If the pattern turns bearish, the target is $23,369 from the current position of the triangle’s lower trendline. Bitcoin price will break the May 19 low at $30K, retrieval of 61.8% of the advance that started in March 2020 at $27,175.

It is necessary to note that the BTC target downside is slightly above the 2017 high of $19891.

Ethereum price makes a statement today

A bullish hammer candle on ETH’s 12-hour chart started rebounding on May 23 after printing an oversold reading on the daily Relative Strength Index (RSI). It was accompanied by an above average size. Moreover, the May 23 drop from the May 19 low created a double bottom pattern with a $3,000 launch price.

Ethereum price is posting a double digit profit at the time of writing, shedding the weakness of the previous days. The smart contract giant emerged from a slight inverted head and shoulders pattern on the 4-hour chart to start the jump. The measured movement is 14% of the neckline. Target pushes ETH around to the 50-day simple moving average, the resistance level from May 26 to May 27.

If the developing Ethereum rally from the inverted head and shoulders pattern gains momentum above the 50-day SMA, it would be possible to launch the double bottom at $3,000, raising the odds of a test of the 61.8% retracement of the May correction. Priced at $3,369.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

Ethereum price may lose its grip on the support surrounding the 12-hour 200 SMA at $2,324, risking a fresh test of the February high at $2,042. A daily close below the hypothetical level will lower the outlook to negative and raise the probability of selling ETH to the strategically important 200-day SMA at $1,657. Notable investors and the growing number of institutions should be motivated to use the level to start accumulating in size.

XRP price completes the measured movement

From May 24 to May 27, XRP price fluctuated along the psychologically important $1.00 level but was unable to overcome the falling four-hour SMA 50. Ripple’s price movement during this time has been negative with little volume, which indicates a lack of real commitment from the investor. The result was a clear head and shoulders top.

On May 28, with high volume, Ripple broke below the neckline at $0.968 and quickly fell to $0.846 before rebounding slightly to the 50-simple moving average four-hours. XRP price is back lower, surpassing the measured Head and Shoulders move target of $0.818.

As of May 29, it appears that the price of XRP will continue to decline, but today’s double-digit rebound to $1.00 confirms that the pattern has completed and that Ripple is free to investigate the higher price.

4 hour chart XRP / USD

4 hour chart XRP / USD

A fresh wave of selling in the cryptocurrency market could derail a bounce, forcing XRP price to test the upper level of the “legal uncertainty price range” at $0.780 and possibly the February 21 high at $0.757. Any additional weakness leaves Ripple vulnerable to a drop below the May 23 low at $0.652 and could reach the 78.6% retracement level of the rally from the December 29 low at $0.555.


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