Cryptocurrency Analysis

Hurdles To Cross To Reclaim Past All Time Highs

Konstantin Anissimov, Executive Director at CEX.IO

There is a general downtrend in the market today, with few of the top ten cryptocurrencies by market cap breaking free from the correlation with Bitcoin (BTC). Bitcoin is down by 4.86% to $47,282.4 according to data pulled from CEX.IO price feeds. Ethereum (ETH) is in perfect correlation with the premier digital currency, dropping by 4.99% to $1,480.35 per coin.

XRP on the other hand appears to be trading independently of the market moves of both coins. The coin has surged 3.73%, erasing some of the losses of the past week, and is exchanging hands at $0.46122.

The market dynamics today show that the many events in the space regarding each cryptocurrency are heralding a unique response across the board. Here is an analysis of Bitcoin, Ethereum, and XRP, with a forecast of the price expectation on the trio for each quarter of the year.

Battle For Upswing Becoming More Challenging

Bitcoin is still the unchallenged pivot for the entire cryptocurrency market. Its price-performance at any point has a huge weight on the general market dynamics, and this responsibility is being stretched with a dip in the market today.

The battle to regain the market from the bears has become extremely daunting for the bulls, as the coin’s price was dragged down from the high of yesterday pegged at $50,543.28 to the low currently been seen now.

One factor that we can attribute this dip to is the falling shares of the electric automaker, Tesla Inc. The company has lost as much as 28% of its share value since it purchased $1.5 billion worth of digital currency back in February. Many analysts are tying the fall to Bitcoin, and both assets seem correlated in the dips at this time.

While the foundations of Bitcoin remain strong, the coin is under much pressure to return gains to corporate investors who may need to declare earnings for the quarter. The bearish dives may also stem from the actions of the retail traders to take profit before the big firms pull the rug off their feet.

The BTC-USD 4-hour chart on TradingView confirms today’s downtrend. Relative Strength Index is 44.08, showing the bears are in control, and the price is more succumbing to the market sellers as showing by the Bollinger bands. The candlesticks are cresting below the signal line and towards the lower band.

From current indications, Bitcoin may play around the $45,000 to $50,000 price levels for a while, but an imminent break-out is underway. A top of $52,000 should be seen after the next breakout above the $50,000 resistance.

Ethereum Price Analysis: Charting its Own Course

Some of the proponents of Ethereum may argue that the blockchain has more use cases at this time, a bullish case for Ether, the network’s native token. Ethereum has been seen to be undervalued, despite the network serving as the bedrock for the bulk of the decentralized finance applications available today.

Ethereum has few psychological hurdles to cross on its way back to its all-time high above $2,000. In a bid to retest this level, Ethereum may have to chart its own course, independent of Bitcoin. While trading at $1,480 at the time of writing, the coin has the $1,700 level to sustain, which when achieved, will create the bull-case scenario to hit the new price levels.

Ethereum has formed a resistance below the 100-day and the 200-day moving averages respectively. A break through this resistance, though difficult, may spell the beginning of a bullish run above the coin’s ATH price levels to reclaim a price close to $2,500 in the mid-term.

XRP Price Analysis: A Break Free From the SEC is a Room To Fly

XRP is showing good resistance to the dips of Bitcoin and Ethereum, a trend that came after Ripple Executives Brad Garlinghouse and Chris Larsen filed separate motions for the United States Securities and Exchange Commission’s (SEC) lawsuit to be dismissed.

The SEC had accused the duo of dealing with XRP as an investment security, a position both have vehemently refuted. XRP has borne the brunt of the legal tussle, and a break free from the SEC may give it room to fly.

XRP’s ultimate ambition is to slice through the $1.00 psychological level that has formed a massive resistance for the coin for months. Should the bulls succeed in pushing the price above this level, a top at the all-time high of $3.83 may be achievable in the mid to long term.