The Daily Cryptomenon
23rd November 2020
Your daily Cryptocurrency Market Analysis News brought to you by the CryptoAltum Cryptomenon Team.
This analysis was written at 9:00 am GMT +3, on 23.11.2020
“Upwards and onwards” was the tagline the Cryptocurrency market used as of late. The bullish momentum that has been dominating every aspect of this market for quite some time now and there doesn’t seem any signs of it letting up. In fact, it seems to be getting stronger and stronger trying to reach previous record highs that it hasn’t been able to do. However, the question still remains whether or not this is sustainable.
With that said, let’s find how the Cryptocurrencies are doing on November 23rd, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - strapped rocket boots to their shoes and blasted off once again. This time they broke through every kind of sphere and don’t seem to be lacking in oxygen as they sit comfortably above. However, this cannot be said to everyone, as Bitcoin’s move, while still impressive, doesn’t share the same intensity that Ethereum and Ripple (yes Ripple) faced.
Before the weekend got underway, Bitcoin felt the need to jump and did just that with the Cryptocurrency reaching the $19,000 resistance level, but was rejected as was expected. The resulting move over the weekend was another move downwards, one that led it back towards the $17,500 support before bounding back towards the $18,500 where it currently trades.
Breaking above the $500 level was not enough for the smart-token, as it had to pull a Bitcoin and break through the other resistances with relative ease. It currently trades above the $580 and doesn’t seem to be lacking in any kind of momentum, as it seems keen on reaching the $600. The bullish momentum is just too strong at this point to rule out a downside trigger should the Cryptocurrency fail to break above any kind of important level.
There was some fear that Ripple is facing a double top around the $0.3050 level. However, all of that turned out to be a mirage as the fourth-largest Cryptocurrency deemed it fit to break above every kind of resistance to reach the $0.5000 before correcting lower. The chart alone is something to behold with something like an exponential growth before tapering out.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 42.31% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 10.61% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 77.73% on a month-to-month basis.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 1st October till the 1st November.
What’s the strategy you’re going to use when it
comes to these cryptos? Has the FOMO (Fear Of Missing Out) hit the
market and panic buying begun? Or will investors be calm and continue to trade
normally?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Reaches $19,000
Unlike Ethereum and Ripple, yes that’s how good those two were, Bitcoin saw some swing movements lower reaching below the $18,200 and $18,000. Eventually, the support level at $17,500 was able to keep things in check and managed to give Bulls enough of a push to start another increase. With that said, Bitcoin does seem to be struggling to find any kind of momentum higher with strong selling pressure present around the $18,700 and $18,800.
Bitcoin is currently trading marginally above the $18,450 as the bullish pressure seems adamant on breaking above the resistance levels. However, it would seem that Bitcoin is currently trading within an upward channel, this gives increased bullish momentum as well as a level for Bears to aim for should they want this momentum to go gone. In this case, its $18,000 as breaking below that level could provide enough bearish momentum to keep the Bulls in check.
If Bitcoin manages to stay within or above the channel, it could attempt another increase higher. The first major resistance is near the $18,500 level. The main hurdle for the Bulls is forming near the $18,800 level. A successful break above the $18,800 zone is must to start a fresh rally. The next major resistance above $18,800 could be $19,500.
Ethereum Reaches the $590
Ethereum is currently trading around the $575 following a minor retreat from new yearly highs at $587. The largest altcoin was catapulted extensively above $500 over the weekend, as it reached a price it hadn’t traded at since 2018. The original aim of the Bulls was $600 but the rally was cut short to allow buyers to find formidable and higher support. Currently Ether’s uptrend has taken a breather as highlighted by the Relative Strength Index as stability appears to have returned to the market mainly due to the low trading volume.
Currently the Bulls’ priority is to keep the Cryptocurrency from sliding below the $550. From here, they have a better standing to plan on how to get to the next rendezvous at $600. It is essential to realize that buying pressure behind Ethereum may increase as the network draws closer to ETH 2.0 launch. Vitalik Buterin, the co-founder of Ethereum assured the community that the thresholds set for staking and number of nodes will be achieved before the deadline. Most analysts believe this launch is critical for Ether both as a digital currency and as a smart contract platform.
For now, the path with the least resistance is upwards especially with support at $550. Trading above the recent high at $587 would boost the price above $600. Moreover, this feels like a conservative prediction based on the immense support ahead of the smart contract giant.
Ripple Reaches the $0.5000
The cross-border token broke out during the weekend in a series of engulfing candlesticks. In the course of the trading last week, $0.31 emerged as a critical barrier, which forced Ripple to seek balance at $0.28 before resuming the uptrend. Recovery above $0.31 happened in tandem with Ethereum’s breakout above $500 and towards $600 as discussed earlier. XRP impressively shot up, hitting levels just below $0.5. However, buyers lost steam as the momentum slowed down, allowing sellers to rejoin the market.
At the time of writing, XRP is teetering at $0.4530 following a minor retreat from the recent high. On the downside, $0.45 is coming up as a formidable support area. Closing the day above $0.45 would allow buyers to focus on taking up more positions and creating enough volume for gains above $0.5.
The Relative Strength Index is in the overbought area but hints at prevailing stability for the cryptocurrency in the near term. However, traders need to be on the lookout for the direction the RSI takes because forming a lower high pattern would be a bearish signal. A breakdown from the current price level might seek refuge at $0.3, $0.28, and at the 100 SMA.
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