The Daily Cryptomenon
24th 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 24.11.2020
The focus of today’s writing is not about Bitcoin, but about the Alt-coins that have literally pushed Bitcoin into the backseat and continue to rise with the most impressive run going to Ripple which is knocking on the $0.7000’s door. Overall the momentum does remain extremely bullish for Ethereum and Ripple, however, fears of a pull back in Bitcoin is going to force the other Cryptocurrencies to correct.
With that said, let’s find how the Cryptocurrencies are doing on November 24th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to defy the rules of gravity and moved higher into the atmosphere thanks to those rocket boots. However, it was only Ripple’s and Ethereum’s boots that had the most fuel. Bitcoin, this time, couldn’t compete with the other Cryptocurrencies. Momentum seems to have shifted from the King’s favor over the other Cryptocurrencies.
Bitcoin has managed to break above the $18,550 resistance level, only to find an even stronger one at the $18,800, with the ultimate goal remaining at the $19,000 for the time being. However, with several resistances in the way, it’s going to be an uphill battle to reach the top. Currently, Bitcoin is consolidating around the $18,370 level with RIS (Relative Strength Index) neutral indicating that there is clear direction for the time being.
Ethereum pulled a Bitcoin as everyone was thinking that it was going to consolidate it’s gains after failing to break above the $560, but in fact it continued to rally that much higher breaking above several resistances and reached the $620. The bullish momentum must be fading at this point as we can expect some sort of pullback especially with RSI deep in overbought territory.
Ripple continues its rapid ascent as it has become the third-largest Cryptocurrency after Ethereum and Bitcoin. As of this writing Ripple is still climbing higher as the $0.9000 was no match for the bullish momentum, as the bullish momentum doesn’t seem it wants to relent.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 41.62% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 47.26% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 169.46% 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? Will the bullish momentum continue to push
everything higher? Or is the correction imminent?
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Bitcoin Consolidates Below $18,500
Bitcoin’s ego wasn’t it going to let Ripple and Ethereum beat it, so there was an attempt to clear the $18,700 and $18,800 resistance levels. However, like all ego driven attempts, Bulls failed to gain strength, resulting in a fresh decline below the $18,600 level. The price even broke the $18,500 level and settled around the $18,375. Conversely, there were strong bullish moves in Ethereum and Ripple, breaking the $600 and $0.9000 resistance respectively.
The price is now facing a strong resistance near the $18,450 level. Moreover, there’s also a key contracting triangle forming with resistance near $18,480 on the hourly chart of the BTC/USD pair. The triangle resistance is close to the 50% Fib retracement level of the recent drop from the $18,782 high to $18,160 low. If there is an upside break above $18,500, the price could make another attempt to clear the $18,700 and $18,800 resistance levels.
If BTC fails to clear the $18,500 resistance, there is a risk of a downside break. An initial support is near the triangle lower trend line at $18,280. A clear break below the triangle support might lead the price towards the $18,160 swing low. In the stated case, there is even a risk of more losses below the $18,000 support level in the coming sessions.
Ethereum Hits $620 and Corrects Lower
Ethereum continued to trade higher reaching the $620 level before it started its correction lower as it trades just above the $600. Ether traded to a new multi-month high at $621 and it is currently experiencing a slight correction lower. An initial support on the downside is near the $600 level. There is also a channel forming on the instrument.
The channel support is near the 50% Fib retracement level of the recent rise from the $582 swing low to $621 high. On the upside, ether price is facing hurdles near the $620 and $625 levels. A clear break above the $625 resistance might open the doors for a strong surge. The next major resistance is near the $645 and $650 levels. Any further upsides might lead Ether towards the $675 and $680 levels in the near term.
If ETH fails to break the $625 resistance level, there could be a minor correction. The first major support below $602 and $600 is near the $592 level. A downside break below the $592 support level might start a substantial decline. In the stated case, ETH may perhaps decline towards the $550 support level or the 100 hourly simple moving average.
Ripple Faces High Volatility, Consolidates Around $0.7000
Ripple is leaving only dust behind as the Launchpad rockets it to higher levels not seen since September 2018. The flagship cross-border transfer token has continuously built upon the support at $0.28 to achieve incredible results in the last seven days. In the last 24 hours alone, Ripple is up 150% to exchange hands at $0.9000. The break above $0.5 over the weekend left the Bulls convinced that they can hit higher highs.
Even though Ripple was able to break above the resistance levels and reached a high of $0.9000, the volatility that helped it reach that level, soon turned its back on Cryptocurrency. Ripple began to fall heavily reaching the $0.6280 support level before bouncing slightly and trading around the $0.6920. Even though Ripple wasn’t able to actually close above the $0.9000, Bulls are happy with the move higher indicating that there is a chance to revisit the $0.9000 high once again.
XRP might be able to keep some of the bullish momentum should it be able to actually stay and close above the $0.7000 on the day. Staying above that level, would give the signal to Bulls that hope is not all gone and that there is a chance of another explosive movement higher. On the downside, the first point of contact is likely to be $0.6280, followed by $0.5000. If the selling pressure becomes drastic, XRP will be forced to seek refuge at the 50 SMA and 100 SMA under $0.4500.
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