Cryptocurrency Analysis

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ETH stuck in a narrow range, XRP and LTC storms psychological marks: analysis and forecasts

After several major crashes in a row, the total market capitalization dropped to $1.5 trillion and showed how important a role bitcoin plays in the mood of coins. Due to the collapse of BTC, the institutionalization of crypto assets has slowed down, but the market is starting to recover its indicators. Over the past day, the growth of all crypto assets amounted to 7%, and the total capitalization came close to $1.7 trillion. At the same time, it is too early to talk about the beginning of the growth cycle due to the instability of the indicators of the leading cryptocurrencies.

ETH/USD quotes continue to show fluctuations. The cryptocurrency manages to reach a certain level, but without the support of the market, the ether drops again to $2,400, where the maximum help from buyers is concentrated. Thanks to these fluctuations, the dynamics of the asset price change quite often, and as of 13:00 UTC, ETH completely won back the growth to the $2,700 mark. However, given the daily trading volume, which is in the area of $80 billion, as well as the positive dynamics of the growth of quotes over the past few hours, we can say that Ethereum has sufficient chances to approach the $3,000 mark at the end of this week. A decisive role here is played by the upcoming update to version ETH 2.0, which is scheduled for early June and will significantly increase the interest of institutions in the asset. A similar scenario is indicated by the conclusions of Goldman Sachs CEO David Solomon, where he stated that the interest of large companies in ETH has recently continued to grow, despite the volatility of the market.



There was optimism in the change in the quotes of the XRP/USD pair. The cryptocurrency continues to grow, but it is difficult to overcome the $1 mark, where the support of buyers is leveled due to market pressure. Over the past two days, the crypto asset has tested the round indicator twice, but failed both times. As of 13:00 UTC, the coin has risen in price by 4% over the past day with average daily trading volumes. Judging by the horizontal charts, the Ripple token is expected to make another retest of the $1 mark, and quite likely, this is the final attempt of the cryptocurrency to justify the current market interest. In the next few days, ETH will begin to capture the audience even more actively from the token and will not leave it a chance to gain a foothold above the round position. In addition, in the event of another failure, the coin can aggravate the correction and tip over to $0.850, where it will test the strength of the market loyalty.



The quotes of the LTC/USD pair managed to make a real breakthrough from $120 to $187, where the cryptocurrency did not receive the necessary market support. As a result, the indicators of the coin dropped to $170, from where the asset began the next stage of growth. Over the past day, LTC has risen in price by 5% with mediocre daily trading volumes, however, the cryptocurrency showed persistence and growth prospects, leaving the pressure zone around $170. Soon, the altcoin may again try to approach the $200 mark and gain a foothold above it, but for this, the coin needs a positive impulse.



New details of the future update of Polkadot have emerged, thanks to which it became clear that the asset has little chances to compete with ETH at the current stage of development. The developers admitted that improving the system towards conducting parallel transactions does not guarantee stable operation of the blockchain and leveling the main problem of ether - sharply increasing transactions. With this news and the upcoming ETH update, there is no doubt that the decentralized DOT project is still far from real competition with the main altcoin. The asset is quoted at $20,226 and the daily trading volumes indicate dying market interest.



The news background around the cryptocurrency market began to change. The main reason for optimism was the statement by representatives of Goldman Sachs bank regarding the expansion of the cryptosystem. According to the company's experts, shares of the cryptocurrency exchange Coinbase are the best way to invest in crypto assets at the current stage. Thanks to this news, the main coins have activated and are trying to overcome psychological marks in order to gradually approach local highs.






Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin is trying to recover



Over the past day, bitcoin has dropped slightly in price by about $1,500. In general, trading continues between the levels of $42,000 and $31,000. So far, it is very difficult for Bitcoin to start a new round of upward movement, and what are the fundamental reasons for this? From our point of view, none. The fundamental background remains extremely weak, because all the problems that led to the collapse of bitcoin by $36,000 have not gone away. China still wants to ban mining, in the USA everyone also wants reporting on each operation over $10,000, and Elon Musk still does not know what he wants from bitcoin and why he is commenting on it at all. So, it turns out that the market is currently waiting for news, waiting for new statements by Elon Musk, waiting for someone authoritative to suggest what to do. Over the past year, the markets have become overly confident in Bitcoin and in the fact that it will grow almost constantly. Perhaps this will be so in the long term, but recall that after the two largest upward trends in 2013 and 2017, 2-3-year downward trends followed, during which bitcoin lost up to 90% of its value. However, it will be really easy for bitcoin to fall in price in the next couple of years, for example, 6.5 thousand dollars per coin. After all, it managed to fall in price over the past month and a half by $36,000, losing 56% of the cost. Thus, a couple more news from China and the rate may collapse down even more. The most important thing is that for some reason none of the large investors and institutions is running to save Bitcoin. In cryptocurrency circles, there is an opinion that at this time there are a lot of "whales" and institutions on the market, in contrast to previous trends, when most of the investors were retail and small, therefore, Bitcoin now cannot collapse down the way it did in 2014 and 2018. However, as practice shows, it may do so, since large investors also do not want to suffer losses, and bitcoin, like everyone else, is considered as an investment tool. If the instrument is not profitable, you should get rid of it. But not everyone bought bitcoin at a price below $30,000 per coin. There are those who have invested at around $50,000 or $60,000. Thus, in general, we believe that the Bitcoin upward trend is indeed over. Most likely, for several months, "digital gold" will try to restore the "bullish" trend, and there will be consolidation for several months, after which more and more investors will be disappointed in the prospect of new growth of bitcoin and sell it. The profitability of mining will also decrease, which will reduce the production of new bitcoins.



In technical terms, bitcoin dropped twice as close as possible to the $30,500 level and both times failed to consolidate below. Thus, now we are counting on the rise of bitcoin quotes to the critical line and for a certain period of consolidation. Roughly speaking, the market needs to calm down now. Nevertheless, if the bitcoin quotes manage to gain a foothold below the $30,500 level, then the token's depreciation may continue.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP challenges short-term resistance that if broken can push price towards $1.28

XRP is near its short-term highs challenging the recent high of $1.05. If price manages to break and stay above $1.05, then price could continue higher towards our first target of $1.28. Price has most probably made an important short-term low at least and has completed the decline from $1.97. Now it is time to reverse trend at least for the short-term.



Red rectangle- resistance

Blue lines -Fibonacci retracements

XRP has so far retraced only 38% of the recent upward move and is now about to break above the resistance area around $1.05. Breaking above this level is key for the short-term trend. Most probable target is at $1.28 and if trend remains bullish, price could even reach $1.50. Support is at $0.99 and next at $0.90. If support fails to hold we could see a pull back towards $0.79. If price manages to break $1.05-$1.10 and stay above $1, I believe the chances for a pull back towards $0.80-$0.90 in the short-term, decline dramatically.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin targets $45,000

As we mentioned in a previous analysis Bitcoin has most probably ended its decline from its all time highs and made an important low around $30,000. Price has broken the short-term resistance trend line providing us with the first bullish (reversal) signal. Price is now making new short-term highs.



Red rectangle - major resistance

Red line - resistance (broken)

Red lines - Fibonacci extension targets

Blue lines - Fibonacci retracements

Bitcoin first target is at $41,780 but I believe most probably we will reach $45,000. Next target would be at $50,000 but it is too early to say if we can reach that target because many important resistance levels are between $45,000 and $50,000. Support is found at $36,500 and as long as price is above this level, I expect to reach $45,000 soon. For the medium-term trend it is important to see if price makes a lower high around $45,000-$50,000 and if it reverses from that area of resistance. This lower high could be a bearish signal for a coming second sell off wave for a push below $30,000. However it is still too early to tell. Now we focus on the short-term upside momentum and our first target of $45,000.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum expectations and short-term targets

Ethereum like most cryptocurrencies has most probably made an important low on May 23rd. Price is bouncing higher and is now making higher highs and higher lows in the 4 hour chart. Our price target is at $3,200-$3,300 where we find important Fibonacci resistance.



Red rectangle - target area for

Ethereum price Ethereum made a first pause at the 38% Fibonacci retracement after the start of its bounce. Price briefly pulled back and is now making higher highs. This leads me to expect more upside to come for Ethereum at least in the short-term. My target is the 61.8% Fibonacci retracement so the second upward leg is at least equal with the first. My most probable scenario for Ethereum is to see the formation of a major lower high created around the red rectangle area. I expect one more leg down that will bring price below the lows of May 23rd. For this bearish scenario to come true, price will need to break below $2,500. Until then, short-term trend is bullish.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for May 26, 2021

Crypto Industry News:
Nobel laureate Robert Shiller told about cryptocurrencies in a TV interview published on Sunday.

He won the Nobel Prize in 2013. Together with him, Eugene Fama and Lars Peter Hansen were awarded. The award concerned research in the field of "empirical analysis of asset prices". Shiller is currently a professor of economics at Yale University.

Shiller is concerned today about the current housing, stock and cryptocurrency market. He says he sees the mindset of the "wild west" among investors in these markets. In other words, he sees them as speculative mania and gold rush.

While discussing the cryptocurrency market in particular, Shiller said, "It's a very psychological market."

"It's an impressive technology," he said.

As he added, "the ultimate source of value is so ambiguous that it has a lot to do with our narratives and not with reality."

Nevertheless, he said he was tempted to enter the cryptocurrency market.

- I was thinking about buying them to experience this. In fact, many people do. I have never bought Bitcoin. Maybe I should be active in this market - he noted.


Technical Market Outlook:
The BTC/USD pair is trying again to test the 38% Fibonacci retracement seen at $41,096. The market still trades under the supply zone located between the levels of $43,1459 - $41,794, so bears are still in full control of the market and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish. The next target for bears is May 19th low seen at the level of $29,701. The volatility is subdued and the momentum is now neutral.

Weekly Pivot Points:
WR3 - $58,682
WR2 - $52,643
WR1 - $41,961

Weekly Pivot - $35,513
WS1 - $25,163
WS2 - $18,359
WS3 - $7,655


Trading Recommendations:
Event despite the recent correction the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for May 26, 2021

Crypto Industry News:
In a recent television interview, Todd Morley - a former board member of global investment firm Guggenheim Partners - compared the use of the networks behind two of the world's leading digital assets. He spoke briefly about Bitcoin, calling it a "thing".

On the other hand, he praised the functionality and structure of Ethereum. According to him, the blockchain behind the second largest cryptocurrency "has much higher usability thanks to smrat contracts." Morley added that the number of developers building applications for Ethereum is rapidly growing. According to the co-founder of Guggenheim, the number of developers working on Ether has grown 20-fold for six years in a row.

Moreover, the CEO of Overline emphasized the importance of digitization for any industry today. He warned that every sector would experience serious difficulties, and would even "go out of business" if it did not implement blockchain technology into its system. Morley cited the insurance industry as an example.

At the end of the interview, the co-founder of Guggenheim told about the world's largest NFT museum that he is building. He argues that Guggenheim Partners is very interested in modern infrastructure. The company aims to introduce investors to the cryptocurrency community and become a "global digital ambassador."


Technical Market Outlook:
The ETH/USD pair has violated the price overbalance level is seen at $2,781, so the road towards the next technical resistance seen at $2,861 is now open. Nevertheless, the bears are still in full control of the market and the next target for beats is seen at the level of $1,729, $1,633 and $1,544 if the overbalance level violation fails. The nearest technical support is seen at the level of $2,201.

Weekly Pivot Points:
WR3 - $4,688
WR2 - $4,131
WR1 - $2,922

Weekly Pivot - $2,341
WS1 - $1,141
WS2 - $579
WS3 - $181


Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

MicroStrategy asks other companies to buy bitcoin as well



Bitcoin continues to try to start a new upward trend. It is theoretically possible, but from our point of view, such growth will be limited by the level of $45,000 and will be frankly corrective. In order for Bitcoin to start an upward trend again, a strong fundamental background is needed, which cannot be achieved now. But there is new information from a company that loves to invest in bitcoin, and is very upset when bitcoin does not rise in price all the time. MicroStrategy CFO Phong Le said that it was the responsibility of any tech company to add Bitcoin as a reserve asset. "I'm not saying you should put all of your corporate treasury in bitcoin. But if you're not putting any of it into bitcoin, I don't think you're doing your fiduciary responsibility, which is maximizing shareholder value." Phong Le said. Fiduciary responsibility means that those companies or managers who deal with other people's money must act in the best interests of their customers, not their own. Simply put, Phong Le insists that everyone needs bitcoin, even a farmer from Texas needs bitcoin, and tech companies seem to represent the entire US population and, since everyone needs bitcoin, such companies are obliged to develop it in the interests of everyone. For some reason, Le associates the growth in the shareholder value of companies with Bitcoin purchases. This is such nonsense from the CFO of a company that was once associated with software development, and not with buying cryptocurrencies. Le also believes that companies that offer financial products based on bitcoin are obliged to use them themselves, in other words, invest in bitcoin. "To do so credibly, you have to go all in, you have to put bitcoin on your balance sheet." Le said. However, it is not at all surprising why the director of the company that bought more than 90,000 BTC encourages others to also buy bitcoin under various plausible excuses. The simpler motivation "bitcoin will cost $1 million" no longer works, so you need to look for other ways to motivate large investors in bitcoin. As we said earlier, bitcoin more and more resembles a "financial pyramid", where those who are at the bottom (who bought bitcoin earlier) can earn only at the expense of those who are at the top (later came to the market). If the latter are not there, those who are below do not earn either. Therefore, everyone who owns any number of bitcoin coins is interested in seeing the bullish trend recover as soon as possible. Hence, there are hundreds of predictions about hundreds of thousands of dollars that a digital gold coin will someday be worth.



Technically, bitcoin on a 4-hour timeframe is currently trying to move away from its local minimums with all its might. But even in spite of a strong pullback from the level of $29,873, it still cannot be said that the downward movement is completed. As you can see, the price has not even managed to overcome the Ichimoku cloud yet, and in general, the upward movement is not too strong.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Upside Activated!

Ethereum increased as expected after taking out a dynamic resistance. The price turned to the upside after ending its major corrective phase and now is fighting hard to resume its upwards movement.

The price action has signaled that the downside movement is over and that the bulls could take the lead again. Technically and fundamentally, Ethereum is still a buy despite the most recent massive sell-off.


ETH/USD AIMS AT 3,000!


As you already know from my analysis, ETH/USD was expected to resume its growth after breaking above the warning line (wl1). Also, I've told you that a new higher high, bullish closure above 2,788 immediate high could really activate more gains.

ETH/USD trades above the 50% Fibonacci line and it could reach the 3,000 psychological level soon. Registering a valid breakout above this static obstacle, immediate high, could announce a further growth at least until 3,200, R1 (3,214).


ETHEREUM FORECAST!

Failing to stay under the weekly pivot point (2,473.51) and closing above 2,788 high represented a long opportunity with a potential target at 3,000 psychological level.

Jumping and stabilizing above the $3,000 level could indicate more gains in the upcoming period. Any temporary decline could bring new long opportunities.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for XRP (Ripple), for May 26 - 27, 2021: Buy above $ 0.8896



In the European session, Ripple XRP trading above the SMA of 21 and above 1/8 of a murray. The chart has formed a head&shoulder pattern, preparing for a new bullish wave.

The price of XRP has surged by more than 50% to $ 1.03 from the low created on May 23 at $ 0.65. As the price remains above the 0.8896 level of the 21 SMA on 4-hour charts, it is likely to continue climbing to the zone of $ 1.3357 in the short term.

On the other hand, a pullback to the 21 SMA could give the market a good attractive opportunity to buy at 0.88. Then it could continue its rise that will allow buyers to accumulate more bullish positions. Under these conditions, the XRP price is likely to rise to the $ 1.33 level of the 200 EMA.

On the contrary, if the XRP trades at the key level of $ 0.88, there could be a fall to the 0.66 zone to form a double bottom, and thus demonstrate to the market the strength of this support.

The technical reading of the eagle indicator is showing a bullish signal, since the moving line is aimed at buying levels and with a good way to go, this data also favors our bullish outlook for Ripple.

Our recommendation is to buy if Ripple breaks the 1.09 resistance zone, or on the contrary if it makes a retracement to the support zone of the 21 SMA located at 0.88, it will be a good opportunity to buy with targets at the 200 EMA about $ 1.33.


Support and Resistance Levels for May 26 – 27, 2021
Resistance (3) 1.2084
Resistance (2) 1.1317
Resistance (1) 1.0642

Support (1) 0.9549
Support (2) 0.8548
Support (3) 0.7781





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021