Home Analysis Alt Coins Crypto Tech Analysis: Consolidation In Progress Post Rebound From Weekend Decline

Crypto Tech Analysis: Consolidation In Progress Post Rebound From Weekend Decline

Cryptocurrency market is consolidating from rebound rally post weekend declines while market lacks a directional bias. Bears still have lingering influence and await opportunity for yet another downward breakout

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Cryptocurrency market over the weekend saw relatively subdued activity well within familiar price levels. However, bears are attempting to gain an edge since late Sunday’s trading session. The overall cryptocurrency market capitalization is currently at $299 Billion USD. While altcoins have managed to gain positive bias in intra-day session, Bitcoin is still retaining bearish bias. When looking from short term perspective, 9 of top 10 cryptocurrencies in terms of market capitalization have seen declines over the course of last seven trading sessions. This is a sign that bears at attempting to create a change in directional momentum but broad based investor sentiment on hopes for further highs are keeping price declines contained while giving market bulls opportunity to attempt a sharp upside breakout every other week.

Bitcoin: The decline in overall market capitalization of cryptocurrency can be blamed on Bitcoin given the fact that the progenitor of cryptocurrencies saw a decline of nearly 8 Billion USD over the weekend. However, Bitcoin still remains well above $11000 handle and has a market capitalization of US$203.75 Billion as of writing this article. The BTCUSD pair is trading at $11,376.6 down by 0.26% on the day. The price has moved well below all three SMA’s – 9, 50 and 100 in min and hourly intra-day charts. RSI indicator which is used to measure the momentum of price is seeing signal line move in downward direction and is currently at 46 handle hinting at dovish influence on price momentum. Moving forward the pair faces strong resistance to the upside at $11414, $11594, $11695 and strong support at $11241, $11145 and $10882 price handles respectively.

Ethereum: The progenitor of altcoins and second largest cryptocurrency in terms of market capitalization Ethereum saw a decline of nearly 370 Million USD since last Friday. As of writing this article ETHUSD pair is trading at $212.31 up by 1.21% on the day with a market capitalization of 22.86 Billion USD. Over the course of weekend, Ethereum made an attempt to decline below $200 mark but strong support to downside helped cap decline at $202 handle. Ethereum hit an intra-day low of $209.28 earlier today but has rebound back above $210 handle. In daily chart, price is well below all three SMA’s but remains above 50 SMA in hourly intra-day charts. RSI indicator used to measure price momentum is seeing signal line flat out near neutral level of 48 across intra-day charts suggesting that ETH is seeing consolidative price action. The pair is now awaiting directional cues while bears are waiting for breakout cues. Expected support and resistance for the pair are at 209, 206, 202 and 213, 214, 216 handles respectively.

Ripple: Ripple has managed to consistently hold its position as third largest cryptocurrency in terms of market capitalization and has a current market cap of US$ 12.91 Billion down by US$ 180 Million since last Friday. As of writing this article, XRPUSD is trading at 0.3004 up by 0.60% on the day. To the downside, four month lows of 0.2855 continues to cap further downside move causing the pair to rebound from weekend lows. The pair has since managed to cross back above 0.30 handle and gains strong foothold above 0.30 handle in intra-day trading session today while awaiting fresh updates for possible directional cues as XRP bulls currently lack directional bias and strength to push further above while downside remains an attractive options in immediate future trading sessions. RSI indicator used to measure price momentum is seeing signal line move towards oversold region and is currently at 38 level across intra-day charts hinting at prevalent bearish bias, while 9, 50 and 100 SMA’s are running parallel to current price levels in intra-day charts hinting at further continuation of ongoing consolidative rally in immediate future.

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