Last week in the news
Ripple is again in the spotlight of investors. Despite the SEC lawsuit and decreased volatility since the beginning of this year, during the last few weeks it seems like coin is back in the game. Its price reached $1.4 on Saturday. Ehereum is continuing its uptrend above psychological level of $2.000, reaching new ATH during last week at $2.195. At the same time total market capitalization of the crypto currency market reached new highs, hitting $2 trillion. Many analysts agree that as more investors and companies are entering this market, market capitalization could only go higher during this year. S&P500 and Dow indices are near all-time highest values amid boosted investors confidence related to employment figures and increased optimism on expected boost in economic activity after a pandemic.
After Coinbase, crypto exchanger Kraken is also setting a road to go public during year 2022, through direct listing. It is the world’s biggest crypto exchanger with more than 6 million users. As Kraken CEO Jesse Powell noted in an interview to CNBC, their business was highly supported by the crypto asset price increase since the beginning of this year. Exchanger managed to beat last year’s results as of February this year. More new users are coming, as the crypto market “exploded” this year. Coinbase, which is to be listed on Nasdaq as of mid of April, posted quarterly revenue results of $1.8 billion, beating year 2020 with results.
In the same interview Powell mentioned that the increase in price of Ethereum is coming from the emerging popularity of non-fungible tokens, or NFT`s, which are based on ether blockchain. Although these tokens cannot be exchanged one for another, they have more value for collectors, same as it was with football or baseball cards. As per some estimates, during last year the total value of NFT`s market reached $250 million, with potential for further growth.
India's potential ban of all crypto currencies is currently in the gray zone. Namely, after announcement made by Reuters on officially non-confirmed information that India's government is planning to adopt law by which all businesses with crypto currencies as well as possessions or trading will be illegal, Coinbase is reporting that several crypto exchangers based in India will submit proposal for regulation of crypto market in this country to their Government. As per estimates, there are some 10 million users of crypto currencies in India with more than 3.000 people employed in this industry.
The US Internal Revenue Service (IRS) will start checking customer databases of digital platform Circle Internet Financial. The aim of this is to identify those taxpayers who did not fill in their tax returns income from transactions in crypto currencies. How many taxpayers will be affected it cannot be estimated at this moment. However, a similar IRS action was conducted during 2017 with currency exchanger Coinbase, when the IRS submitted notification letters to more than 10.000 taxpayers with calls for amended tax returns.
Real estate business is also moving to the crypto world, as per announcements made by real-estate billionaire Rick Caruso. His company will start accepting rent payments made in Bitcoin. He also noted that his company has already moved some treasury funds into this currency.
Crypto market cap
Total crypto market capitalization hit a new milestone as it reached a level of $2 trillion during the previous week. The US investors optimism for economic recovery is generally boosted after posted results on decreased US unemployment and expected recovery of economic activity after a pandemic. Crypto market and equities benefited from this positive sentiment. Compared with the week before, market capitalization has increased by $136 billion which is a 7% increase on a weekly basis. Focus of investors during the previous week was on Bitcoin, but also there was significant contribution from altcoins like Ripple, Bitcoin Cash and Ethereum. Total cash inflow from the beginning of this year is $1,2 trillion which is an increase of 152% in relative terms.
It was the second green week for the crypto market. Although almost all coins gained in value there are few of them with extraordinary results. Ripple has proven that this coin is back in the game with an increase of $23 billion or 89% in market cap in a single week. Significant increase also made Bitcoin Gold with 165% change in a week gaining additional $1.1 billion in market cap. Ethereum has reached new ATH with additional $7 billion or 3% increase while Bitcoin gained additional $26 billion or 2%.
The table below provides most recent information regarding market cap and circulating supply for most popular crypto currencies.
BTC on the road to new ATH ?
After two weeks of testing resistance at $60K, Bitcoin managed to break it for a short period of time on Saturday, reaching $61,3, but soon reverted back to levels above $58K. There is still not enough market strength to move above this level. On the other side, since January this year Bitcoin is moving in an uptrend channel. In case that lower side of a channel at $55 is not broken, it would be an indication that Bitcoin is heading toward a new level of $65. RSI currently stands slightly above 50, so currency has space to move to both sides. At this moment short term support stands at $58K down to $55K. In case that resistance at $60K is broken, then the next level to watch is $65K.
Ethereum newest ATH at $2.195
During last week, Ethereum managed to break ATH from week before, reaching level of $2.195. Currency reverted shortly, to test support level at $2K, but did not managed to break this level on down side. RSI is still moving modestly below level of 70 implying that overbought market might soon be reached, and there is also space that support at $2K will be tested again. Break of current support would lead ETH to next short term support level at $1.950 and $1.850. In case that level of $2K is not broken, then ETH will revert to the upside to test again ATH at $2.195 and potentially reach new levels above.
Ripple is back in the game
It was one of the best weeks XRP had in recent time. After an SEC lawsuit, which hit coin quite negatively during the end of last year, Ripple managed to find its way to recovery. Last few weeks led to modest signs of recovery, while last week confirmed that XRP is back in the market. XRP started last week modestly above level of $0.6 and finished it reaching level of $1.4. Value has been more than doubled. ATH for XRP stands at $3.3, reached in February 2018. Long term resistance level stands at $1.38, which XRP tested in its latest move. Clear break from this level on the up side would lead XRP to next long term resistance at $2.40. RSI is moving above 70 during the whole week, so there might be some possibility for short term reversal. Long term support stands at $1.20 down to $0.9.
What’s in store for altcoins
Bitcoin Gold made a surprise during the previous week. BTG started the previous week at levels around $40 and ended the week hitting level of $116. In a single week, coin increased its value by 190%. Coin is currently trading around $110. Important long term levels from this point for BTG are standing at $140 and $90. Indicators show a highly overbought market after such a strong move, so there is some probability for BTG to test current support level of $90 before it reverts back to test $116 and above.
After a strong push in price as of the end of March, Theta has slowed down a bit around levels of $12. RSI also fell modestly below 70 which is an indication that the coin has entered into short term trend reversal. Support level at $11 has been tested during a week. Moving below this level might lead coin to the next support levels marked at $8 and $6. On the opposite side, current resistance stands at current ATH at $15.
Cardano (ADA) is continuing to move in a short price range. Last week the coin was moving between levels of $1.15 up to $1.30. Resistance at $1.20 has been tested, but without clear break on the up side. Clear break of $1.20 resistance would move coin to test levels of $1.40 and $1.47 where ATH stands. On the opposite side, current support levels stand at $1 and $0.9.
It was a very good week also for Litecoin as it managed to break resistance level at $200, tested for some time in the past and to test long term resistance at $250. As RSI still moves below 70, there might be an indication for $250 to be tested once again, before the coin reverts to down side. Short term support levels can be found at $230, $200 down to $180. On the opposite side, next long term resistance level stands at $300, while ATH is $418 reached in December 2017.
LINK managed to make a clear break of resistance at $30 and moved to test next resistance at $35. Without strength to break it, coin reverted to test $30 as now support level. RSI moved also down to 50 after indication of overbought market at levels of $35. In case that coin breaks current support at $30, the next level of watch on downside is $20 down to $18. On the opposite side ATH stands at $36 and a break of it would lead to a new ATH, probably around level of $40.
DOGE is still on the road to test the next resistance level at $0.07. During the previous week the coin was moving modestly between levels of $0.057 up to $0.067. In case that resistance at $0.07 is broken, then the next level to watch would be $0.08. On the opposite side, current support is at $0.05 and next is at $0.03.
NEO managed to break long term resistance level at $55 and made its way to $68. However, most of the time the coin was trading up to level of $63 which is currently marked as short term resistance level. If this level is broken, then the coin might reach next resistance at $70 all the way up to $80 which is a long term resistance level. In case that coin reverts to down side, level to watch is $55 as long term support. Next support levels stand at $45 down to $40.
With its move to $300 Monero (XMR) has been moving in an overbought zone for the last few days. Coin managed to break resistance $250 and it is currently headed to test next long term resistance at $300. If this level is broken, next long term resistance is at $330. In case of short term reversal, potential levels are at $250, $230 down to $200.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
This Market Analysis has been published by a staff writer at XBTFX.
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