Cryptocurrencies Market Update ➡️ Solid ECN

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BTCUSD - Monetary factors support the growth of "digital gold"​

The main support for the entire cryptocurrency sector was provided by monetary factors. After the release on Thursday of the December data on US consumer inflation, which recorded a new slowdown in its growth rate from 7.1% to 6.5% on an annualized basis, investors became stronger in the opinion that the US Fed will also adjust the rate of interest rate hike to 25.0 percentage points, putting pressure on the quotes of the national currency. As a result, the positions of alternative assets, including digital ones, have strengthened. It should be noted that the current trend is in line with the forecasts of the well-known crypto enthusiast, the head of Galaxy Digital, Michael Novogratz, who at the beginning of last year said that the digital asset market would restore positive dynamics after the American regulator retreats from the policy of sharp monetary tightening. Further positive for the sector was the news that the FTX bankruptcy team was able to restore access to the company's assets of about 5.0B dollars, which could provide investors with a significant part of the losses.

However, despite a number of positive factors, the further recovery of BTC positions does not look sustainable, as the position of the cryptocurrency industry as a whole remains difficult. The decline in trading volumes on the leading centralized exchanges continues, in December alone, the number of spot trading decreased by 42.8% at once, and of futures – by 47.6% compared to November. The difficult financial situation caused by a protracted fall in prices last year is forcing companies to optimize costs and reduce staff. Thus, the Coinbase platform announced plans to lay off 950 employees, which is about 20.0% of the staff. Cryptocurrency company ConsenSys intends to lay off about 100 employees, and cryptocurrency wallet operator Blockchain.com – 110. In addition, additional problems for the industry may be created by a new lawsuit by the US Securities and Exchange Commission (SEC) against the Gemini site and the Genesis credit service, which, according to the regulator, are guilty of unregistered sale of securities to investors.

Technically, the price is testing the resistance zone of 21000 - 21250 (Murray level [+1/8], Fibo retracement 61.8%), consolidation above it will give the prospect of further growth to the levels of 22500 (Murray level [+2/8]) and 25000 (Murray level [0/8] for W1). If the level of 20000 (Murray level [8/8], Fibo retracement 50.0%) is broken down, the decline will be able to resume to the area of 19100 (Fibo retracement 38.2%) and 17830 (Fibo retracement 23.6%).

Resistance levels: 21250, 22500, 25000 | Support levels: 20000, 19100, 17830​

 

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XRPUSD - The pair has stabilized after a week of growth​

In general, investor enthusiasm has somewhat weakened, and the cryptocurrency market has stabilized in anticipation of new drivers of movement. Currently, further price growth is hindered by uncertainty over the US Securities and Exchange Commission (SEC) lawsuit against Ripple. Recall that the regulator insists that the XRP token is an unregistered security, which the company does not agree with. Now the parties have submitted to the court the final versions of their arguments, but no decision has been made yet. The cryptocurrency community estimates Ripple's chances of a successful outcome of the case as high, but even in this case, new lawsuits by the department against the company are not excluded.

Investors are also concerned about the new management of the bankrupt FTX exchange gaining access to assets worth 5.5B dollars, a certain share of which are XRP tokens. It is assumed that they will be used to compensate customers for losses and can be sold, which will put additional pressure on the pair.

The key for the "bulls" is the level of 0.3906 (Murray level [8/8]), consolidation above which will give the prospect of further growth to the area of 0.4150 (Murray level [+2/8]) and 0.4330 (Fibo retracement 23.6%). The resumption of a serious decline should be expected when the 0.3540 mark is broken down (Murray level [5/8], the middle line of the Bollinger Bands), and in this case the quotes will be able to reach 0.3296 (Murray level [3/8]), 0.3174 (Murray level [2/8]).

Resistance levels: 0.3906, 0.4150, 0.4330 | Support levels: 0.3540, 0.3296, 0.3174​

 

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ADAUSD - Murray Analysis​

The ADA/USD pair has been growing since the beginning of this year within the framework of a general market trend: last week the price rose to the three-month highs to the level of 0.3662 (Murray level [7/8], Fibo retracement 38.2%), after which it corrected to the area of 0.3300, where it is now trading.

A breakdown of the level of 0.3173 (Murray level [5/8], Fibo retracement 23.6%) may lead to the development of a decline to the level of 0.2929 (Murray level [4/8]), supported by the middle line of the Bollinger Bands. If the level of 0.3418 (Murray level [6/8]) is broken out, a correction to the area of 0.3662 (Murray level [7/8]), 0.3906 (Murray level [8/8]), 0.4150 (Murray level [+1/8]) is possible.

In general, the resumption of the growth of quotations in the near future seems to be a more likely scenario, since the upward trend in the pair persists, which is confirmed by the upward reversal of the Bollinger Bands. At the same time, the development of a downward correction to the area of 0.2929 is also not excluded, but the price is unlikely to go lower, since the Stochastic is close to the oversold zone, which indicates a possible upward reversal.
Resistance levels: 0.3418, 0.3662, 0.3906, 0.415 | Support levels: 0.3173, 0.2929, 0.2685​

 

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BTCUSD - The pair's upside potential remains

Positive sentiment associated with monetary factors still prevails. Investors are confident that against the backdrop of declining inflationary pressures, the US regulator will start raising interest rates less rapidly, reducing the increment to 25 basis points from 50 basis points. These actions should lead to a decrease in support for the US currency and at the same time reduce the likelihood of the US economy going into recession, which increases the risk appetite of investors.

The price corrected to the level of 22500 (Murrey level [6/8]), a breakdown of which will give the prospect of developing a decline to the levels of 21250 (Murrey level [5/8], Fibonacci retracement 61.8%) and 20000 (Murrey level [4/8], Fibonacci retracement 38.2%). The key level for the "bulls" remains the level of 23400, consolidation above which will ensure growth to the levels of 25000 (Murrey level [8/8]) and 26250 (Murrey level [+1/8]).

Resistance levels: 23400, 25000, 26250 | Support levels: 22500, 21250, 20000​

 

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ETHUSD - Murray analysis​

Since the beginning of this year, the ETHUSD pair has been growing within the framework of a general market uptrend: last week, for the first time since September, the quotes rose to the area of 1678.7, but now they have lost some of the positions they won, dropping to the level of 1625 (Murray level [5/8]).

The key for the "bulls" is currently the level of 1650 (Fibo retracement 23.6%), consolidation above it will give the prospect of further growth to the levels of 1750 (Murray level [6/8]) and 1875 (Murray level [7/8]). In general, the upward trend in the market remains, as evidenced by the upward reversal of the Bollinger Bands and the increase in the MACD histogram in the positive zone. The Stochastic's exit from the overbought zone does not exclude a corrective decline, but its potential is seen as limited by the 1500 mark (Murray level [4/8], the middle line of the Bollinger Bands). If the price consolidates below this level, the decline will be able to continue to the area of 1375 (Murray level [3/8]) and 1250 (Murray level [2/8]), but so far this scenario seems less likely.

Resistance levels: 1650, 1750, 1875 | Support levels: 1500, 1375, 1250​

 

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XRPUSD - Current trend​

The XRPUSD pair has been growing within the general market trend since the beginning of this month, and this week has reached 0.4290 for the first time since November.

Currently, the quotes have corrected to the 0.4000 area, but the current short-term uptrend will be reversed only after the breakdown of the middle line of Bollinger bands in the 0.3780 area, and then the asset will be able to return to 0.3418 (Murrey level [6/8]) and 0.3174 (Murrey level [5/8]). The key "bullish" level is the resistance zone 0.4330–0.4395 (Fibonacci correction 23.6%, Murrey level [+2/8]), the breakout of which allows growth to 0.4750 and 0.5219 (Fibonacci correction 38.2%).

Resistance levels: 0.4395, 0.4750, 0.5219 | Support levels: 0.3780, 0.3418, 0.3174​

 

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XRPUSD - The Pair is in a State of Uncertainty​

Experts associate the downward correction, which is common for most digital assets, with the expectation of today's results of the US Federal Reserve meeting: the market is ready to soften the "hawkish" rhetoric, but investors are afraid to hear hints that the monetary policy tightening cycle will last a long time, so they remain calm and are in no hurry to buy risky assets.

The growth of quotations is hindered by the uncertainty associated with the suit of the US Securities and Exchange Commission (SEC) against Ripple, the verdict on which should be issued soon: the agency accuses the company of issuing an unregistered security (XRP token) and illegally distributing it in the amount of 1.3B dollars. Separate claims concern the management of the corporation: the company's CEO, Brad Garlinghouse, and its co-founder Chris Larsen, who, according to officials, received 600.0M dollars from the sale of their own coins. Investors were alarmed by the appointment of Monica Long, who previously held the position of general manager, to the post of president of Ripple: analysts believe that the current management of the company allows the outcome of the trial to be negative for her and seeks to prevent chaos in management in the event of serious legal consequences for Garlinghouse and Larsen.

Currently, the trading instrument is around the middle line of Bollinger bands. If it consolidates below it, as well as 0.3906 (Murrey level [8/8]), the decline may continue to 0.3662 (Murrey level [7/8]), 0.3418 (Murrey [6/8]). Consolidation above 0.4150 (Murrey level [+1/8]) will give rise to 0.4395 (Murrey level [+2/8], Fibonacci retracement 23.6%), 0.4750.

Resistance levels: 0.415, 0.4395, 0.475 | Support levels: 0.3906, 0.3662, 0.3418​

 

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Bitcoin is Fighting for 24,000 USD Level​

Cryptocurrencies gained on the wave of Jerome Powell's comments and the double-dip of the previous 25bp US rate hike. Although the Fed is far from declaring victory over inflation, and Powell hinted at a possible return of inflation if the central bank does 'too little,' markets particularly liked the comments regarding the 'global disinflation' process that has begun. As a result, the largest cryptocurrency is struggling to rise near its summer 2022 highs.​

• Bitcoin soared above $24,000 but was quickly knocked off these levels by supply and is now struggling to return to levels near the summer 2022 peaks. The strongest gainers are again altcoins including Binancecoin, Algorand, Sushi and Avalanche;​
• The volume of the cryptocurrency market rose by nearly 30% yesterday on a daily basis, to about $61 billion. The capitalization of the entire market is now around $1.1 trillion;​
• Meta Platforms' successful report supported sentiment on U.S. index contracts primarily the NASDAQ, with which Bitcoin correlates;​
• Wall Street is approaching a key day of earnings season, with today's post-session shows from Apple, Alphabet and Amazon likely to affect volatility and investor activity in the evening hours in the cryptocurrency market as well;​
• If positive sentiment continues traders may increase speculative exposure around Elon Musk's 'favorite cryptocurrency,' Dogecoin in view of recent comments by Tesla's CEO, who suggested integrating Twitter with both traditional finance and cryptocurrencies.​

The sudden surge of interest in Bitcoin in 2023 caused a massive increase in the average daily number of transactions on the network. Their number has grown exponentially from less than 200,000 to nearly 350,000 in a month, the largest increase in the history of a major cryptocurrency.

Bitcoin chart, H4 interval. The largest cryptocurrency remains above the SMA200 (red band) and SMA100 (black band), which is also the lower limit of the upward formation. Bitcoin has also reached the vicinity of the summer 2022 maxima, although this is the second time it has been pushed back by supply from levels above $24,000. The 50 SMA average (blue band) is approaching the cross with the SMA200, which in the past has most often heralded a prolonged price rebound, and has also crossed the SMA100 for the first time in nearly 10 months, which was a resistance even during summer of 2022.​

 

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ETHUSD - Murray analysis​

The ETHUSD pair has been trading within the upward trend since the beginning of this year, however, growth has slowed down in the last three weeks, and quotes have entered the sideways range of 1687.5 - 1562.50 (Murray levels [7/8]-[6/8]), where they are now.

Currently, the price is trying to resume growth from the middle line of the Bollinger Bands (1625) and, if consolidated above the upper limit of the specified range, it will be able to rise to 1750 (Murray level [8/8]) and 1875 (Murray level [+2/8]). In general, the uptrend in the pair is still maintained, which is signaled by the upward reversal of the Bollinger Bands and the stabilization of the MACD histogram in the positive zone. A downward reversal of the Stochastic allows a breakdown of the middle line of the Bollinger bands and a pullback of the price to the area of 1562.5 (Murray level [5/8], the lower line of the Bollinger Bands), however, in this case, an upward reversal is more likely than further development of the downward movement.

Resistance levels: 1687.5, 1750, 1875 | Support levels: 1562.5, 1500, 1375, 1250​

 

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XRPUSD - Technical analysis​

The XRPUSD pair has been actively growing since the beginning of this year as part of the general market trend. However, at present, the upward dynamics have seriously slowed. The price reached three-month highs around 0.4290, after which it rolled back to 0.3906 (Murrey level [8/8]). Fixation below it will give the prospect of further decline to 0.3662 (Murrey level [7/8]) and 0.3418 (Murrey level [6/8]). If the quotes consolidate above the resistance zone of 0.4050 – 0.4150 (middle line of Bollinger bands, Fibonacci correction 38.2%, Murrey level [+1/8]), growth may continue to 0.4395 (Murrey level [+2/8]), 0.4565 (Fibonacci retracement 61.8%) and 0.4750.

Technical indicators point to the continuation of the uptrend. Bollinger bands are directed upwards, Stochastic is reversing upwards from the oversold zone, and the MACD histogram is stable in the positive zone.

Resistance levels: 0.415, 0.4395, 0.4565, 0.475 | Support levels: 0.3906, 0.3662, 0.3418​

 

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Bitcoin is Trying to Maintain Momentum Above $23,000​

Bitcoin is trading near $23,000 today. After Powell's speech yesterday, cryptocurrencies were unable to continue their rally despite the initial euphoria. The mood among cryptocurrencies is mixed, with the biggest loser being Graph which gained nearly 50% yesterday on the AI trend. Let's take a look at some key 'on-chain' indicators like NUPL and SOPR, and see how the balance of short (STH) and long-term (LTH) BTC addresses:

NUPL (Net Unrealized Profit/ Loss Ratio) indicator tracks the ratio of unrealized profit/loss and shows that the rally has lifted Bitcoin above the average purchase price of the broad market, making the 'average' BTC holder back in profit. Compiling the duration of the negative NUPL in all the bull markets, we observe a historical similarity between the current cycle (166 days) and the bear markets of 2011-12 (157 days) and 2018-19 (134 days). However, the 2015-2016 bear market stood out under this, experiencing a dominance of unrealized losses twice as long as the current one. This could serve as a potential warning signal should BTC return below $20,000.

The ratio between the total unrealized gain held by the market and its annual average could be another indicator of momentum. The momentum metric is currently approaching the equilibrium point and shows similarities to the recent phases of the 2015 and 2018 bull markets. Confirmed breakouts above the equilibrium point (1 - the horizontal red line) coincided with a change in the market's profit structure in the past foreshadowed a longer recovery in sentiment. The length of time elapsed below the equilibrium point was similar in all major bear markets, but reaching a key on-chain level may foreshadow supply resistance - the index is struggling to climb above resistance on a sustained basis, which underscores how important it is to overcome $24,000 on a sustained basis.

The SOPR (Spent Output Profit Ratio) indicator can be used to check the profit aggregated by different groups of BTC holders. For short-term traders (STH, in red), we see that the STH-SOPR is currently trading above the 1.0 value, showing the first sharp increase in profitability since March 2022. This reflects the large amount of BTC purchased at lower prices in recent months, which can be sold at a profit if sentiment weakens further.

It is positive that not only short-term investors but the broader market also gained after a very deep and prolonged period of losses. However, assessing the LTH (Long Term Holder) group of long-term investors, we can see that the stressful situation has continued nd since the LUNY implosion. Although the group is still, on average, in a loss, there are the first signs of recovery, including the potential formation of an upward LTH-SOPR trend. During the 2018 bull market, long-term investors averaged 291 days in losses; today it's about 265 days.

Bitcoin, W1 interval. The major cryptocurrency is still struggling to climb above the 200-week average, which has turned into resistance from its historic, very strong support in 2022.​

 

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BTCUSD - The potential of a downward correction does not look exhausted​

The reason for the decline was the combination of two main negative factors – signals about the possibility of maintaining a tight monetary policy in the USA for a long time and a series of investigations by American regulators against cryptocurrency companies. Recall that last week was rich in comments from leading officials of the US Fed, who agreed that it is necessary to continue raising the interest rate until the labor market can cool down, and the prerequisites for further inflation growth will not be eliminated. In this scenario, the US currency will continue to receive support against alternative assets, including digital ones.

At the same time, the American authorities began to pay more and more attention to the digital market. The bankruptcy of FTX caused officials to want to exclude the recurrence of such incidents and provide additional protection for investor funds, which resulted in a series of inspections and investigations against cryptocurrency companies. So, last week it became known that the US Securities and Exchange Commission (SEC) accused the Kraken digital exchange of offering and selling an unregistered staking program to customers. The platform did not admit its guilt, but made a deal with the regulator, terminating its offer and paying a fine of 30.0M dollars. The head of the SEC, Gary Gensler, has already stated that cryptocurrency exchanges should pay attention to the situation with Kraken, and this made experts fear a complete ban on staking for retail investors in the USA. Thus, the next target of the SEC may be the Coinbase Earn offer. We also note reports from Bloomberg that the New York State Department of Financial Services (NYDFS) has initiated an investigation into the activities of Paxos Trust Company, which is the issuer of USDP and BUSD stablecoins. The details of the case are still unknown, but it has already caused the suspension of the development of its own stable token by the payment giant PayPal Holdings Inc., which collaborated with Paxos Trust Company.

Technically, the price has recouped some of the losses and is now at 21800, but the resumption of serious growth will be possible only if quotes consolidate above the middle line of the Bollinger Bands (22900). In this case, the growth targets will be the levels of 25000 (Murray level [8/8]) and 26250 (Murray level [+1/8]). A breakdown of 21250 (Murray level [5/8], Fibo retracement 61.8%) will give the prospect of continuing the decline to the area of 20000 (Murray level [4/8], Fibo retracement 50.0%) and 18750 (Murray level [3/8]).

Technical indicators do not give a single signal: the Bollinger Bands are reversing downwards, the MACD histogram is preparing to move into the negative zone, and the Stochastic may leave the oversold zone.

Resistance levels: 22900, 25000, 26250 | Support levels: 21250, 20000, 18750​

 

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XRPUSD - Price Reduction Potential Remains​

The XRP token, like most of the cryptocurrency market, continues to be under pressure from monetary factors. The January US inflation data turned out to be worse than forecasts: the consumer price index was 6.4% instead of the expected 6.2%, and the base index was at 5.6% instead of 5.5%. The decline in inflationary pressure in the US economy is happening too slowly to give grounds for the US Fed to suspend the current cycle of tightening monetary policy, so the interest rate increase will continue in the coming months, which will negatively affect the positions of assets alternative to the dollar.

Also, the serious growth of XRP is hindered by the uncertainty associated with the lawsuit of the US Securities and Exchange Commission (SEC) against Ripple. Recall that officials consider the token to be an unregistered security. Currently, both sides are awaiting a court decision, which increases tensions in the market. Trying to reassure investors, Ripple's management demonstrates confidence in its victory over the regulator, as stated by the head of the company Brad Garlinghouse last week, however, experts are not so optimistic and quite admit a negative verdict for Ripple, which could put significant pressure on the entire sector. It should be noted that SEC representatives have previously stated that, in their opinion, most modern cryptocurrencies are securities, therefore, if the court decision is favorable for the commission, lawsuits can also be filed against other digital assets.

Now the price is in the area of 0.3790, but in order to resume serious growth, it will need to break above 0.3906 (Murray level [8/8], the middle line of the Bollinger Bands). In this case, quotes can rise to 0.4150 (Murray level [+1/8]) and 0.4330 (Fibo retracement 23.6%). The key for the “bears” is the level 0.3662 (Murray level [7/8]), consolidation below which will give the prospect of further decline to the area of 0.3418 (Murray level [6/8]) and 0.3174 (Murray level [5/8]).

Resistance levels: 0.3906, 0.4150, 0.4330 | Support levels: 0.3662, 0.3418, 0.3174​

 

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BTCUSD - Growth, but serious negative factors for the digital market remain​

There were no serious fundamental reasons for the strengthening of BTC positions, so most experts believe that it was caused by speculative operations. In particular, on February 15, one of the large funds made an acquisition of cryptocurrency worth about 1.0B dollars, which could push the quotes up. Nevertheless, two main long-term negative factors, the monetary policy of the US Fed and the pressure of US regulators, which can lead digital assets to a new decline, still persist.

The latest data on inflation in the USA confirmed the too slow pace of its decline, which finally convinced investors that in the near future the cycle of interest rate increases will not be completed, which will lead to further strengthening of the position of the US currency in relation to alternative assets. On the other hand, US regulators are increasing pressure on the cryptocurrency sector, trying to prevent a repeat of the situation with the FTX exchange and the loss of investors' investments. Currently, the main attention of officials is focused on the activities of cryptocurrency exchanges, which are systematically persecuted. In the middle of the month, the US Securities and Exchange Commission (SEC) accused the Kraken digital platform of selling a staking program unregistered by the regulator to customers and forced it to pay a fine of 30.0M dollars. Also last week, the Binance exchange was attacked again, although it was done through Paxos, the issuer of the Pax Dollar (USDP) and Binance USD (BUSD) stablecoins. The New York State Department of Financial Services (NYDFS) accused Paxos of insufficient control over its products and the possibility of their use by attackers. As a result, the issue of USDP and BUSD was stopped, but their turnover is still maintained. The consequence of these decisions has already been the termination of Paxos' work on the creation of a stablecoin for PayPal Holdings Inc. and the severance of relations with Binance. The management of the crypto exchange, according to Bloomberg, is considering the possibility of terminating cooperation with all partners from the USA and even completely leaving the American market. Experts believe that the situation could be much more dangerous for the entire digital sector if the authorities decide to freeze or confiscate assets that link BUSD to the dollar. In this case, the world's largest digital trading platform can expect bankruptcy.

Technically, the key for the "bulls" remains the level of 25000 (Murray level [8/8]), consolidation above which will cause continued growth to the levels of 26562.5 (Murray level [+1/8]) and 27400 (Fibo retracement 38.2%). In case of a breakdown of the level of 23000 (the middle line of the Bollinger Bands, Fibo retracement 23.6%), the decline will be able to resume to the levels of 21000, 20312.5 (Murray level [5/8]).

Resistance levels: 25000, 26562.5, 27400 | Support levels: 23000, 21000, 20312.5​

 

[SOLIDECN]

XRPUSD​

Last week, the XRPUSD pair attempted to grow within the framework of the general market trend and tested the upper limit of the Murray trading range, supported by the middle line of the Bollinger Bands in the area of 0.3906.

Quotes have not yet managed to consolidate above this level, but if successful, the upward dynamics will be able to continue to the levels of 0.4150 (Murray level [+1/8]), 0.4330 (Fibo retracement 23.6%). The key for the "bears" is the 0.3662 level (Murray level [1/8], the middle line of the Bollinger Bands), consolidation below it will give the prospect of the price returning to the area of 0.3418 (Murray level [6/8]), 0.3174 (Murray level [5/8]).

Resistance levels: 0.3906, 0.4150, 0.4330 | Support levels: 0.3662, 0.3418, 0.3174​

 

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ADAUSD​

This week, the ADA/USD pair corrected downwards from the 0.4000 area (50.0% Fibonacci correction) but failed to break below the middle line of Bollinger bands (0.3845). The quotes are trying to change the current short-term uptrend, which is indicated by the reversal of Bollinger bands to horizontal movement after growth, the downward direction of Stochastic and the decrease in the MACD histogram in the positive zone.



Also, the price chart and the histogram have signs of a “bearish” divergence, which also implies the possibility of negative dynamics. The resumption of the decline is possible only after the breakdown of the important support 0.3660 (Murrey level [7/8], Fibonacci correction 38.2%), and then its targets will be 0.3418 (Murrey level [6/8]) and 0.3173 (Murrey level [5/8], Fibonacci retracement 23.6%). If the quotes consolidate above the key “bullish” level of 0.4000, the upward movement may continue to 0.4395 (Murrey level [+2/8], Fibonacci retracement 61.8%), which seems less likely so far.

Resistance levels: 0.4000, 0.4150, 0.4395 | Support levels: 0.3660, 0.3418, 0.3173​

 

[SOLIDECN]

BTCUSD - The pair remains under pressure​

Regulatory pressure on the digital sector is growing: consistent claims against Kraken, Binance, and Paxos, the issuer of USDP and Binance USD BUSD stablecoins, as well as information about the possibility of banning staking and access of individuals to the digital dollar make experts fear worsening business conditions and additional outflow of investments from the sector. The most pessimistic representatives of the crypto community believe that the current situation may lead to the withdrawal of digital companies from the United States to countries more loyal to the industry. Recently, the head of the Securities and Exchange Commission (SEC), Gary Gensler, reaffirmed that almost all cryptocurrencies, except for BTC, can be recognized as securities since they offer investors a profit using the efforts of intermediaries. The official also questioned the ability of digital assets to act as a store of value or payment mechanism and hinted at a further increase in the activity of the regulator.

The trading instrument regained some of its lost positions and is now near the middle line of Bollinger Bands 23400, but the resumption of growth to 25000 (Murrey level [8/8]), 26562.5 (Murrey level [+1/8]) will become possible if it consolidates above the level 24000. The key “bearish” level is 23000, and its breakdown will give the prospect of further decline to 21875 (Murrey level [6/8]), 20312.5 (Murrey level [5/8]).

Technical indicators do not give a single signal: Bollinger bands are horizontal, the MACD histogram is decreasing in the positive zone, but Stochastic is reversing upwards.

Resistance levels: 24000, 25000, 26562.5 | Support levels: 23000, 21875, 20312.5​

 

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ETHUSD​

It is the key “bullish” level, tested many times over the past five weeks, and consolidation above it will give the prospect of further growth to 1812.50 (Murrey level [+1/8]), 1875.00 (Murrey level [+2/8]) and 2000.00 (Fibonacci retracement 38.2%). The key “bearish” level is 1500.00 (Murrey's level [4/8]) at the lower border of the formed side range, the breakdown of which will allow the asset to fall to 1375.00 (Murrey's level [2/8]), 1250.00 (Murrey's level [0/8]).

Resistance levels: 1700, 1812.5, 1875, 2000 | Support levels: 1500, 1375, 1250​

 

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XRPUSD - Pending decision on SEC lawsuit​

This week, the XRPUSD pair resumed growth after the negative dynamics last Friday, which developed against the backdrop of the release of January data on the price index of personal consumption expenditures in the United States: the figure rose from 5.3% to 5.4% YoY. The increase in value reinforced the fears of experts in the continuation of the tightening cycle of the regulator's monetary policy, which supported the dollar and put pressure on alternative assets. On the background of these data, the price dropped to the area of 0.3655 but now it has returned to the middle line of Bollinger bands around 0.3800.

The situation on the market remains uncertain as investors await the final decision on the suit of the US Securities and Exchange Commission (SEC) against Ripple, which should follow soon. The agency insists that the XRP coin, like other cryptocurrencies, except for BTC, is an unregistered security. Corporation lawyers reject the accusations, stating the imperfection of the current definition of the concept of "security" and referring to the statements of the former head of the SEC, William Hinman, who claimed that the ETH token, similar to XRP, is not one. Experts believe that Ripple has a high chance of winning the process. They note that the SEC had previously initiated a similar lawsuit against blockchain platform LBRY, accusing it offering its own LBC tokens but the court ruled that LBC could only be considered a security if there was an initial coin offering (ICO). If Ripple convinces the court that there was no official initial offering, the decision could be favorable for the company, and then leading exchanges such as Coinbase and Binance will re-list XRP, and its price will rise, leveling the negative effect of American monetary policy.

Now, the trading instrument is close to the middle line of Bollinger bands 0.3800, consolidation above which will give the prospect of resuming growth to 0.4150 (Murrey level [+1/8]) and 0.4330 (Fibonacci correction 23.6%). The key “bearish” level is 0.3662 (Murrey level [7/8]), a breakdown of which will provide a decline to 0.3418, 0.3662 (Murrey level [6/8]).

Resistance levels: 0.38, 0.415, 0.433 | Support levels: 0.3662, 0.3418​

 

[SOLIDECN]

Bitcoin​

Concerns over the condition of crypto bank Silvergate mount and it is putting pressure on cryptocurrencies. Bitcoin plunged below the $23,000 mark and is trading over 4% lower on the day.