xrp cryptocurrency price

Vitalik says crypto isn’t a toy anymore while the market crashes

Cryptos consolidate before breaking out in 2022
Written by publisher team

  • Bitcoin price with second day inside is below the massive resistance between $41,581 and $43,331.
  • Ethereum price is being challenged at the 50 day simple moving average.
  • XRP price is narrowing below the symmetrical triangle formed in April and May.

Bitcoin price recorded an oversold reading on the daily Relative Strength Index (RSI), providing some stability for the leading cryptocurrency. Ethereum is showing relative strength as it is dealing with resistance at the 50-day simple moving average, rather than trying to hold the 200-day SMA like most other cryptocurrencies. XRP price lacks reliable support until $1.00.

Buterin takes the crypto market crash step by step

It has been an eventful week for cryptocurrency investors as the digital tokens plunged as much as 70% at Wednesday’s low. The sales were sure to be painful. However, speculators and market spectators need to remember that technical signals of a significant decline were present for many cryptocurrencies in the days leading up to Wednesday.

In a lengthy interview with CNN Business, Ethereum co-founder Vitalik Buterin believes that the cryptocurrency is in a bubble, saying that it could expire this week or extend for several more months.

Buterin stated that there have been three big cryptocurrency bubbles, and “mostly the reason the bubbles stop is because some event is happening that shows that the technology just doesn’t exist yet.”

However, this explanation for this collapse appears to be a bit far from the current reality as platforms like Ethereum have made huge strides to provide the ecosystem for developers to build new applications that are transforming industries. For Buterin, “cryptocurrency appears close to being ready for the mainstream in a way it wasn’t even four years ago.”

In light of the Chinese crackdown and the plethora of negative comments from central banks around the world, Buterin acknowledged that regulation is always a concern. Governments cannot completely break up the blockchain because it is decentralized, but they can block or cut off access.

At the same time, governments have a lot of power to make participation in the crypto sector more painful.

However, Buterin stressed how important it is for the crypto sector to engage with regulators around the world to identify common ground rather than engage in frequent confrontations.

Bitcoin price uncertainty must be met with patience

Bitcoin price has surged more than 40% from its May 19 low to yesterday’s high of $42,605, but is still just under 40% below the all-time high of $64,899 printed on April 14. However, it did not elaborate on the prospects for the future of the leading cryptocurrency.

Bitcoin price collapsed by 53.7% ever to its lowest level on May 19, making it the fifth largest drop for BTC in its relatively short history. Such violent moves in an intense period coincide with panic selling built on forced liquidations driven by successive margin calls.

On May 19, the price of Bitcoin closed with a bullish hammer candle on the four-hour chart. A buy signal was triggered on the next candle when bitcoin traded above the top of the hammer before stopping at the massive resistance.

The critical resistance level is framed by the 38.2% Fibonacci retracement of the March 2020 rally at $41,581, the January high at $41,986 and the February low at $43,016. Adding to the importance of the price range now is the 38.2% retracement of the decline from the all-time high of $64,899 to yesterday’s low of $43,331.

Investors should prepare for a period of volatility as support and resistance levels are tested and retested. Bitcoin price is expected to correct at least part of yesterday’s recovery with reliable support in the price range between $34.380 and $35,000. A dip below this level will accelerate the sell-off, which will send bitcoin down to the 78.6% retracement level of yesterday’s bounce at $32,677.

Today’s breakout from the symmetrical triangle on the 4 hour chart indicates that bitcoin price will test the aforementioned support.

Until the bitcoin price exceeds $43,400 on a daily close basis, a test of $30,000 cannot be ruled out.

4 hour chart BTC/USD

A daily close above $43,400 will confirm a new trend for BTC, but it will quickly be challenged by the four-hour 50 SMA at $44,540. After liquidating $44,540, bitcoin price will target the 50-day simple moving average at $54,477.

Ethereum price starts consolidation process

Ethereum price showed superlative relative strength in April while the cryptocurrency market suffered a massive sell-off, building the foundation for a 120% rally from the April 18 low at $2000 to the May 12 high at $4,384.

This month’s sell-off proved extremely difficult to beat, with Ethereum dropping to the 78.6% Fib retracement level of the rally that started at the end of February, which is a 55% drop from the May 12 high at $4,384 to the May 19 low. at $1900.

On May 19, ETC closed with a bearish hammer candlestick pattern on the 4-hour chart which was activated on the next candle, but the uptrend proved to be transient, and the price of Ethereum fell again. However, the buy signal is still alive despite the volatility.

Ethereum price is currently at the 61.8% retracement level at $2,473, but below the 50-day simple moving average at $2,782. It is now trading with a second indoor day in a row on the bar charts, which indicates that investors should be prepared for more price swings as impatient investors and profit collectors use support levels to manage their positions.

A daily close above the 50-day simple moving average at $2,782 would be the first step in rebuilding the bullish technical case for ETC. If the Ethereum price closes above the tactically critical moving average, it should rise to the four-hour 200 SMA at $3,084 and then the four-hour moving average at $3,346.

ETH/USD 4-hour chart

ETH/USD 4-hour chart

The return of selling should identify support at around $2000, a pivotal level that extends into February.

XRP price offers little room for error at this juncture

On May 19, XRP price destroyed the lower trendline of the symmetrical triangle and collapsed to the confluence of the April low at $0.874 and the 61.8% Fibonacci retracement of the rally that originated at the beginning of 2021 at $0.856.

On the 4-hour chart, XRP price closed with a bullish hammer candlestick pattern on May 19, but the pattern was not activated, as it lacked a trade above the top of the hammer at $1.32 in the continuing candlesticks.

Resistance stands at the May 12 low at $1.20, which has already reversed one bounce, and then solid resistance at the crossover of the triangle’s lower trendline at $1.36 and the 50 four-hour simple moving average at $1.36. The daily close above the four-hour 200 SMA at $1.40 would be the first sign that Ripple is moving from consolidation and is ready to rally to the upper trend line of the triangle at $1.63, and a daily close above $1.70 will confirm the rally.

4 hour chart XRP / USD

4 hour chart XRP / USD

The primary support level is the price range designed by the psychologically important $1.00 level and the May 19 low at $0.829.

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