The sudden breakdown of the cryptocurrency markets over the last few weeks has struck fear into the hearts of hodlers, pushing the ‘fear and greed‘ sentiment indicator right to the extreme.
Now, as bitcoin attempts to make a recovery while Americans tuck into their Thanksgiving turkey, traders are wondering if the dip was just a normal retrace in an ongoing bull market, or if it signifies the start of a long-term downtrend.
Bitcoin starts to bounce
The plummeting cryptocurrency markets have been traced to events in China, where the government quashed excitement over President Xi’s blockchain speech by renewing its commitment to the blanket cryptocurrency ban of 2017, and sending officials to visit crypto exchanges in the cities of Beijing, Shanghai, and Shenzhen.
As the bitcoin price fell on the uncertainty, more than a billion long contracts were liquidated on futures platform BitMEX. But at the same time, new institutional futures platform Bakkt reported a sudden wave of fresh interest from big players.
On the charts, bitcoin is now hovering above support at around $7,400. A move up from here is likely to meet with resistance at around $7,800.
If the price moves lower, support could be found at $6,800. A break of this level is likely to trigger a big move lower to meet the next support level at around $5,800.
Ethereum holds the $150 level
Fundamentals on the Ethereum network are looking up, and the network is alive with activity ahead of the Istanbul hard fork which is now slated for early December. The amount of ETH locked in DeFi apps continues to increase, and so does the volume of Ethereum tokens traded on Ethereum-based decentralized exchange protocols like KyberSwap and Uniswap.
On the chart, the price of Ethereum is perched above support at around $150.
If we drop further, support could be found at around $140, and If we push up, the next significant resistance level is at $200.
XRP capped at resistance
Ripple’s XRP was featured on national media this week, but has still failed to move up. The cryptocurrency appeared on a recent episode of BBC show “Worklife,” where it was presented as a viable solution for traditional transactions that can often take days.
Nevertheless, buyers have failed to step in and move the price up through the level of $0.23352, which is currently acting as resistance.
If the price fails to break this level and move up, then a drop down is likely to find support at around the $0.12435 level.
Algorand blasts off
Algorand, the much-hyped project of MIT professor Silvio Micali, is one of the top-performing altcoins of the week. The cryptocurrency fell over 80 percent after it was launched in June, but is now showing signs of life, and pushed up over 40% on Thursday before retracing.
This upswing is likely to be driven by recent news, as the pure proof-of-stake blockchain network has recently announced a slate of upgrades for dApps, and a partnership with World Chess, which will see the company go public with a hybrid IPO security token offering.
On the charts, the price now needs to find support around the $0.27 level, or it risks returning to previous support at around $0.20.
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.