Cryptocurrencies Market Update ➡️ Solid ECN

[Solid ECN]

Last week, the price reached the year's lows around 0.3825, then recovered part of the position, but now it is falling again. The cryptocurrency sector is under pressure from two main factors: the tightening of monetary policy in the United States and the fall of the UST and LUNA currencies. Yesterday, the head of the US Federal Reserve, Jerome Powell, confirmed officials' determination to raise rates until inflation reaches the target of 2.0%. It means that the strengthening of the US dollar against alternative assets will continue. The collapse of the algorithmic stablecoin UST and its associated LUNA token has also eroded investor confidence in digital currencies, causing sell-offs across the sector. To remedy the situation, the developers of the Terra blockchain proposed to fork, create a new blockchain and additionally distribute 1B tokens among interested participants but experts believe that these plans are doomed to failure.

As for the ADA token itself, its position can be supported by the Vasil hard fork scheduled for June. According to Cardano founder Charles Hoskinson, the fork should lead to a significant increase in network performance due to the launch of the data pipeline function. It will optimize the network for the needs of the growing volume of applications in the DeFi market.

The price is testing the level of 0.4882 (Murrey [1/8]), which breakdown allows a decline to 0.3906 (Murrey [0/8]), 0.2929 (Murrey [–1/8]). The consolidation above the middle line of Bollinger bands and 0.6835 (Murrey [3/8]) allows growth to 0.7812 (Murrey [4/8]) and 0.8789 (Murrey [5/8]). This movement variant seems less likely since the indicators point to the continuation of the downward trend: the Bollinger bands and Stochastic are directed downwards, and the MACD histogram is stable in the negative zone.

Resistance levels: 0.6835, 0.7812, 0.8789 | Support levels: 0.4882, 0.3906, 0.2929.​

 

[SOLIDECN]

The XRPUSD pair is moving within a wide downward channel, but it has been consolidating around 0.41 in relative equilibrium for the second week.

At the moment, the asset's downtrend is maintained, signaled by a downward reversal of the Bollinger and Stochastic bands. To resume a serious decline, the price will have to break below the support zone of 0.4100–0.3650, and in this case, the trading instrument will be able to continue moving towards 0.2930 (Murrey [3/8]) and 0.1953 (Murrey [2/8], the lower limit of the downwards channel). The key "bullish" level is 0.4883 (Murrey [5/8]), above the middle line of Bollinger bands, the breakdown of which will give the prospect of resuming the upward dynamics of the token quotes to the area of 0.6000 (Murrey [6/8], Fibonacci correction 23.6%), 0.6836 (Murrey [7/8]) but so far this variant of further movement seems less likely.

Resistance levels: 0.4883, 0.6000, 0.6836 | Support levels: 0.3650, 0.2930, 0.1953

 

[SOLIDECN]

ADAUSD is trading within a downtrend; however, the price has been consolidating for the last two weeks in anticipation of new movement drivers. The cryptocurrency market is in a state of balance, as the consequences of further tightening of monetary policy in the United States are balanced by the possibility of a recession in the American economy, in which assets alternative to the dollar will again have a chance to ascend.

Currently, the token is testing the level of 0.4882 (Murray [1/8]), consolidation below which will give the prospect of further decline to the area of 0.3906 (Murray [0/8]), 0.2929 (Murray [-1/8]). If the center line of Bollinger Bands and the level of 0.5859 (Murray [2/8]) is broken out, the growth of quotations may resume to the levels of 0.6835 (Murray [3/8]), 0.7812 (Murray [4/8]). However, a further decline in the trading instrument seems to be preferable for now, since technical indicators confirm the continuation of the downtrend: Bollinger Bands and Stochastic are reversing downwards, and MACD histogram is stable in the negative zone.

Resistance levels: 0.5859, 0.6835, 0.7812 | Support levels: 0.4882, 0.3670, 0.2929, 0.1953​

 

[SOLIDECN]

In early May, the bidders tested the key support in the area of 28800, the breakdown or retention of which will have a significant impact on the further dynamics of the BTCUSD pair.

The collapse of the Terra ecosystem, one of the most ambitious developments in the field of decentralized finance (DeFi), led to a decrease in the total value of the cryptocurrency sector by more than 83B dollars, as investors rushed to more secure safe haven assets. BTC reacted with a decline to the global support of 28800 and temporarily stopped near this area.

Holding this level by the "bulls" will allow the asset to regain an uptrend with a target in perspective for several years in the area of the historical maximum of 68300. Additional support for the crypto market can be provided by investor sentiment, which will switch from the USD to riskier assets. This will require global stabilization – the equalization of global inflation and the end of the military conflict in Ukraine, or at least the transition to the stage of de-escalation. Otherwise, with the breakdown of the 28800 level and the price consolidation below it, the rapid decline of "digital gold" will continue with a target at around 19200.

The mid-term trend formally remains downward, but a sideways movement is now forming on the chart with resistance in the area of 30650 and support at the level of 28580.00. A breakout of the resistance level will open up prospects for an upward movement up to the 34050 mark. A breakdown of the support level will lead to an update of the May low of 26800.

Resistance levels: 30650, 34050, 37340 | Support levels: 28580, 26800

 

[SOLIDECN]

$28800 prevents the asset from further decline
Over the past four weeks, sellers in the BTCUSD pair have been testing the key support level of 28800 but have not been able to consolidate below it. The "bearish" activity is probably gradually declining, and soon "digital gold" may start an upward movement with the first target around 34500.

The pressure on the cryptocurrency is exerted by the policy of the US Federal Reserve, aimed at raising interest rates and tightening monetary conditions. At the meeting on June 15, the "hawkish" policy of the financial authorities will continue, and the market expects the index to be corrected by at least another 50 basis points. The attention of investors towards the US currency switched towards the end of last year when bitcoin set an all-time high around 68200. However, the cryptocurrency continues to be popular with traders, especially against the backdrop of global instability, as it can serve as a hedge against inflation, which is accelerating in all developed countries.

From the standpoint of technical analysis, around 28800, the direction of the asset's dynamics is determined. If the level can be kept, the growth will continue with the targets at 34500 and 48050. Otherwise, the global trend will reverse to a downtrend with the target at 19200.

The medium-term trend is slowly turning upwards. Last week, the traders managed to break through the resistance level of 30650.00, and now the growth target is 32350. If it is overcome, the quotes will rush to the area of 34050. The key trend support is shifting to 28500.

Resistance levels: 30650, 34050, 37340 | Support levels: 28500, 26800​

 

[SOLIDECN]

XRPUSD, H4
On the four-hour chart, there is a narrowing of the price in the side channel of 0.3572 – 0.4345, which indicates an imminent impulsive movement of quotes. The formation of a "bullish" candlestick analysis pattern Inverted Hammer above 0.3755 signals that the asset has reached a local low, while the Bullish Belt-Hold pattern emphasizes buyers' confidence. Most likely, the quotes of the token will head towards 0.4345, consolidation above, which will allow the XRPUSD pair to rise to the zone of 0.4751 – 0.5373. An alternative scenario will be relevant if the buyers fail to hold the key support level of 0.3572.

XRPUSD, D1
On the daily chart, there is a formation of a Symmetrical Triangle price pattern, after which the price can go either upwards or downwards. Considering that the instrument is currently trading at the bottom at a strong support level, then most likely, the movement will be upwards, which is confirmed by the formation of a series of "bullish" Hammer patterns. In the current situation, the most likely scenario is the growth of the asset to the area of 0.4345 – 0.5373.

Resistance levels: 0.4345, 0.4751, 0.5373 | Support levels: 0.3572, 0.3043, 0.2614​

 

[SOLIDECN]

Decline within the general market trend​

ADAUSD is actively declining as part of the general market dynamics, being at 0.6448.

On the global chart of the asset, the price is trading in a stable downtrend, turning into a full-fledged trend at the end of March after overcoming the Fibonacci 61.8% full retracement level at 1.2230. However, recently the quotes have been actively rising, having reached the level of an initial Fibonacci retracement of 23.6% at 0.6400, in case of fixing above which the local growth will continue until reaching the level of a complete Fibonacci retracement of 61.8% (0.9298).

Technical indicators confirm a likely upside scenario, reversing towards growth: fast EMAs on the Alligator indicator have already crossed the signal line from below and began to expand the range of fluctuations, while the AO oscillator histogram has moved into the buy zone, having overcome the zero level, and continuing to form rising bars.

Resistance levels: 0.7480, 0.9298 | Support levels: 0.4546, 0.3​

 

[SOLIDECN]

ETH USD, H4​

On the four-hour chart, the Bear flag price pattern formed, which has completely completed its formation, reaching 1079.74. At this support level, sellers met resistance caused by forming a "bullish" Engulfing pattern, which included a reversal model of the Hammer candlestick analysis. In this situation, it is obvious that the asset is strongly oversold, and the "bulls" will be able to win back part of the lost positions successfully. After the breakout of the resistance level of 1429.97, the upward dynamics will continue to the area of 1746.30–2153.01. If the support level of 1079.74 is held, the quotes may go down to 898.98–565.22.

ETH USD, D1​

On the daily chart, the Downwards triangle price pattern has completed its formation, and now there is the formation of a "bearish" Three black crows candlestick analysis pattern, which signals a continuation of the downtrend. At the support level of 1079.74, a Hammer reversal pattern is formed, indicating a possible reaching of the base price. After successfully forming this pattern, the scenario with an upward trend seems to be the most probable. Consolidating of the "bullish" positions above the resistance level of 1429.97 will allow the asset to head higher to the range of 1746.30–2153.01.

Resistance levels: 1429, 1746, 2153 | Support levels: 1079, 898, 565

 

[SOLIDECN]

XRP USD, the downtrend continues​

Although the court hearings between Ripple and the US Securities and Exchange Commission (SEC) in the case of an unregistered sale of securities under the guise of XRP tokens for a total of 1.3B dollars are still ongoing, the company is actively developing and offers its partnership to large international brands. So, yesterday, the Brazilian platform for international transfers, Remessa Online, announced that it was able to significantly increase its cross-border payment traffic thanks to the cooperation with Ripple, which supplies enterprise blockchain solutions based on RippleNet technology.

Yesterday it became known that the popular wallet for storing coins, Xumm Wallet launched an update, thanks to which its users could make transactions from XRPL accounts, avoiding entering a login and password. The solution also allows users to issue a limited set of rights, which significantly increases the safety of user data.

In general, despite the general fundamental background, cryptocurrency quotes are declining, like the entire market, and there are still few prospects for growth, especially yesterday, the US Federal Reserve meeting, the decision of which may strengthen the position of the US dollar, which is the quoted currency in the pair.



Asset quotes are falling within the global downward channel, approaching the support line. Technical indicators maintain a stable sell signal: indicator Alligator’s EMA oscillation range is quite wide, and the histogram of the AO oscillator forms downward bars in the negative zone.

Resistance levels: 0.3712, 0.5022 | Support levels: 0.2785, 0.2​

 

[SOLIDECN]

ADA USD, trading within a local downtrend​

On the global chart of the asset, the price is in a stable downtrend, continuing unsuccessful attempts to break the year’s low of 0.4340, which significantly increases the likelihood of a more significant rebound and upward correction. After the completion of this local growth, the downward dynamics may increase to the initial trend of 61.8% on the Fibonacci extension, around 0.1555.

At the four-hour time interval, trading is taking place within the Expanding formation pattern, within which the formation of the fourth wave has begun, which should become ascending, reaching the resistance line around 0.8731.

Technical indicators confirm the probable upward scenario, reversing upwards: fast EMAs on the Alligator indicator began to actively approach the signal line, narrowing the range of fluctuations, and the AO oscillator histogram is close to the transition level, although it forms bars with a downward trend.

Resistance levels: 0.6451, 0.8731 | Support levels: 0.4340, 0.1554​

 

[SOLIDECN]

BTCUSD, the crypto market remains under pressure​

The BTC USD pair continues its rapid decline for the third week in a row and fell below the 18000 mark, but currently the price has returned to the 20000 area, which is seen as key for investors.

The main factor of pressure on the cryptocurrency sector is still the sharp tightening of the monetary policy of the US Fed, which creates serious risks of recession in the American economy. As a result, bidders are increasingly abandoning risky assets, including investing in shares of technology companies and cryptocurrencies. It should be noted that at present, the stocks of focused on the digital sector MicroStrategy, Coinbase, Silvergate Capital and others are subject to the greatest negative impact. Thus, the loss of MicroStrategy due to the fall of the market amounted to 1B dollars. Last week, it also became known that the cryptocurrency hedge fund Three Arrows Capital is exploring the possibility of selling its assets, and the Asian-focused crypto lender Babel Finance announced the suspension of work.

In general, digital assets are under serious pressure, and the situation will continue to worsen as the US Fed further increases interest rates.

Technically, the key zone for the "bears" is 20000 - 18750. If it breaks down, the decline can continue to 15625 (Murray [1/8]), 12500 (Murray [0/8]) and 10000. With a breakout of the level of 21875 (Murray [3/8]), an increase in the area of 25000 (Murray [4/8], the middle line of the Bollinger Bands) is not excluded, but it is unlikely to lead to a reversal of the current downward trend, the persistence of which is confirmed by technical indicators: the Bollinger Bands are reversing downwards, and the MACD histogram is stable in the negative zone.

Resistance levels: 21875, 25000, 31250 | Support levels: 20000, 18750, 15625, 12500, 10000​

 

[SOLIDECN]

XRP USD - Murrey analysis​

The XRP USD pair is moving within a wide downward channel but has been consolidating around 0.3200 for the second week already and, unlike other leading cryptocurrencies, has not yet been able to recover significantly.

The long-term downtrend continues, but for further decline, quotes will need to break through the zone of 0.3200–0.2930. After that, the price will open the way to 0.1953 (Murrey [2/8]) and 0.0977 (Murrey [1/8], the lower border of the downwards channel). The key "bullish" level is 0.3906 (Murrey [4/8]), the breakdown of which will give the prospect of prices recovering to 0.4883 (Murrey [5/8]), 0.5859 (Murrey [6/8]).

Technical indicators do not give a single signal: Bollinger bands are directed downwards, the MACD histogram decreases in the negative zone, and Stochastic is directed upwards.

Resistance levels: 0.3906, 0.4883, 0.5859 | Support levels: 0.2930, 0.1953, 0.0977​

 

[SOLIDECN]

ADA USD - Murray analysis​

The ADA USD pair continues to trade within the framework of a long-term downtrend. At the beginning of this week, the quotes attempted to grow, rising to the area of 0.5065, but then resumed the decline.

The key for the "bears" is the support zone 0.4310-0.3906 (Fibo retracement of 0.0%, Murray [4/8]), at the breakdown of which the cryptocurrency will fall to the area of 0.2929 (Murray [3/8]) and 0.1953 (Murray [2/8]). Meanwhile, the middle line of the Bollinger Bands (0.5257) is an important benchmark for the "bulls". Consolidation of the price above it will allow the quotes to continue the corrective growth to the levels of 0.6202 (Fibo retracement of 23.6%) and 0.7361 (Fibo retracement of 38.2%).

Further downward dynamics of quotations seems preferable, which is confirmed by technical indicators: the Bollinger Bands and the Stochastic are reversing downwards, the MACD histogram is stable in the negative zone.

Resistance levels: 0.5257, 0.6202, 0.7361 | Support levels: 0.3906, 0.2929, 0.1953​

 

[SOLIDECN]

BTC USD - Murray analysis
The BTC USD pair continues to trade within the framework of a long-term downtrend, however, over the past week the price has consolidated around 21000, waiting for additional drivers of movement.

The key for the "bulls" is the resistance zone 21875-23000 (Murray [3/8], the middle line of the Bollinger Bands), with a breakout of which we can expect the price to return to 28125 (Murray [5/8], Fibo expansion 61.8%) and 31250 (Murray [6/8]). Otherwise, the decline in quotations will resume to the levels of 16900 (Fibo extension 100.00%), 12500 (Murray [0/8]), 10000.

The further development of the current trend is confirmed by technical indicators: the Bollinger Bands are reversing downwards, the Stochastic has also approached the overbought zone, and the MACD histogram is decreasing in the negative zone, not excluding an upward correction, but its potential is seen to be limited.

Resistance levels: 21875, 23000, 28125, 31250 | Support levels: 16900, 12500, 10000​