The cryptocurrency market is seeing the total market capitalization remain well above US$300 Billion despite slight corrective price rally in the previous session. The crypto market saw Bitcoin and major altcoins suffer corrective price activity post US Fed issuing a warning about Facebook’s cryptocurrency project – Libra. However, fundamentally supported crypto market bulls have helped the crypto market recover from declines suffered in the previous session and make significant gains during the trading session today. As bulls hold strong control over cryptocurrency market’s price momentum, major crypto coins are seeing price action retain positive bias and are likely to recover all loss suffered on Fed and Trump comments by the weekend.
Bitcoin: The progenitor of cryptocurrency declined as low as $11005 on Fed Chair Powell’s comments regarding Facebook’s cryptocurrency project Libra. However, the lack of bears grip on momentum has helped the recover significantly during today’s trading session. The BTC/USD pair has moved back above $11500 handle and is back within short term price range limit where price action remained trapped since the start of this month. The price has moved well above 9, 50 & 100 SMA’s in both daily and five-hour intra-day chart which suggests that positive momentum is likely to continue for rest of the day and into the early trading session. But the pair needs to breach critical resistance near $12435 handle to the upside for bulls to move past last week’s high or else continue to trade in range bound fashion in range-bound price action.
Ethereum: The ETH/USD pair hit new monthly lows owing to corrective price rally breaching support at $270 handle and moving as low as $261.76. While the pair has since recovered from weekly lows and moved back above $270 handle, it is still remaining in the bearish consolidative price range. The pair needs to scale resistance at $300 for bulls to make a full-fledged rally aiming for monthly high. Looking from a technical perspective in five-hour intra-day chart the pair has moved back above 9 SMA but still remains well below 50 & 100 SMA’s hinting at strong hurdle for ETH bulls to upside as the trading session progresses into the weekend. The pair needs to move back above $295 handle and test $300 mark at least once by the weekend for Ethereum to regain positive bias failing which the price action is highly likely to enter into a bearish phase.
Ripple: Ripple saw sharp loss similar to Ethereum with price declining to two-month lows. However, the declines were capped owing to strong supply found near psychological support around 0.315 handle preventing further gains. The price of XRP/USD pair has since made steady recovery activity and scaled as high as mid-0.34 handle but gains are capped at psychological levels founds at 0.38 handle which needs to be breached for Ripple to take another go at scaling monthly highs. When looking from a technical perspective, the price is above 9 SMA but well below 50 & 100 SMA’s in five-hour intra-day chart and below all three SMA’s in the daily chart. While mid-0.31 handle provides strong support to the downside, strong resistance to the upside is found at 0.375, 0.396 and 0.416 handles respectively. The XRP/USD pair needs to scale 0.375 handles and test 0.396 handle by weekends for bulls to retain hold of long term price momentum.
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