The Daily Cryptomenon
25th 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 25.11.2020
Yesterday was a very big day for all Cryptocurrencies as they all witnessed a meteoric rise in price with Ripple leading the charge higher posting the most amount of gains out of them all. Bitcoin was actually lagging behind as the Cryptocurrency King didn’t have enough momentum to pull what Ripple did. However, it would seem that the bullish momentum was a bit exhausted and it might be the time for a correction.
With that said, let’s find how the Cryptocurrencies are doing on November 25th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have begun to correct lower after they’ve hit their respective resistance levels. The move lower wasn’t unexpected as the move higher was bound to retrace lower sooner or later. They all had their time in the sun and it’s time to rest a bit. However, the mystery is whether Bulls can recapitalize on the movement higher or not.
As expressed yesterday, Bitcoin was facing indecisiveness after its inability to break above the $19,000 that resulted in a correction and then consolidation. However, with the $18,375 acting as an important support, the Cryptocurrency was able to break above the $19,000 and even managed to reach the $19,500 before moving back lower below the $19,000.
Ethereum didn’t have the needed momentum to break above the $620 which resulted in a downward move that led it towards the $580 support level. This pullback isn’t all that bad considering where the Cryptocurrency started and where it’s currently trading. When coupled with the fact that RSI (Relative Strength Index) has actually fallen below the 50 level suggesting that there might be some consolidation coming Ether’s way.
Ripple was the apparent winner yesterday, where it managed to reach the $0.9000 in a matter of hours, breaking through several important resistances like they were nothing. However, sellers were waiting for the third-largest Cryptocurrency as they forced the instrument back down, but remained quite high compared to where it had started, trading around $0.6500.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 40.51% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 40.15% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 143.86% 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 correction phase of the bullish momentum
finally come? Or will markets simply continue to rally higher?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Clears $19,000 Hurdle and Falls Beneath
Finally, after what seemed like an eternity, Bitcoin was able to clear the $19,000 resistance level. With that level down, the Cryptocurrency was able to break even higher reaching the $19,500 before the inevitable Bears stepped in and began to force the Cryptocurrency lower. The movement lower didn’t stop at the $19,000 like it was expected. In fact, it broke below and reached the $18,620 support before managing to bounce from that level.
There’s also a major bullish trend line forming with support near $18,620 on the 2-hour chart of Bitcoin. The trend line is close to the 50% Fib retracement level of the upward move from the $18,083 swing low to $19,450 swing high. It also intersects with the 50-SMA on the 2-hour chart giving it extra power to contend with in case the Cryptocurrency faces another downturn. Any further losses could start a major downside correction below the $18,500 support. In that case, BTC might even revisit the $18,000 support zone in the near term.
If Bitcoin manages to withstand the current mounting bearish pressure and stays above the $18,800 support level, there could be a fresh increase. An initial resistance is near the $19,200 level. The first major resistance is near the $19,400 level. A successful close above the $19,400 level could open the doors for more gains above the recent high. The main target for the bulls could be a new all-time high above the $19,800 and $20,000 levels.
Ethereum Corrects Below $600
There were two attempts by Ethereum to surpass the $620 resistance level, but it failed. As a result, there was a bearish reaction and the price broke the $612 and $600 support levels. The decline gained pace below the $600 support level and the price even broke the $585 level. Ether found support near the $580 level (the last key breakout zone) and it’s still well above the 100 hourly simple moving average.
On the upside, there’s a major resistance forming near the $600 level. There’s also a key declining channel forming with resistance near $600 on the 2-hour chart. The channel resistance coincides with the 50% Fib retracement level of the same decline. A successful break above the channel resistance could start a fresh increase above $605. The next major resistance is near $612, above which Ether is likely to revisit the $620 resistance zone.
If Ether fails to break the $600 resistance level, there could be more losses. The first major support is near the $580 level, below which the price could test the 100 hourly simple moving average at $570. A clear break below the 100 hourly simple moving average may perhaps spark a larger downside correction below $565. The next major support could possibly be near the $550 level.
Ripple Targets $1.000 with Room to Grow
After spending three years in the crypto bear market as the butt of all jokes, being compared to sheep manure, and much more, XRP has shocked the entire industry with a 225% single-month explosion. This powerful breakout could be just beginning, according to a variety of technical indicators that measure the strength of the movement.
The Cryptocurrency began the month trading at the low end of 20 cents, more than tripling in value from low to current levels. The disbelief rally began following Ripple revealing it was buying back XRP, and news circulating about the upcoming Spark token airdrop. And while XRP has moved so much so quickly, technicals suggest that the rally has legs and is only just starting.
With the RSI in the Bull market territory and has room to run, and the MACD only now flipping bullish, there are more bullish signs that suggest that the march higher still isn’t over. On weekly XRP charts against the dollar, the Altcoin has also reached the top of the Bollinger Bands after making it through the middle-line. This also occurred during the last Bull breakout, which ultimately led to a 34,000% increase less than one year later.
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