The Daily Cryptomenon
11th 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 11.11.2020
Consolidation seems to continue to play a big role in the Cryptocurrency market. Well, at least from Bitcoin’s side as it was the only Cryptocurrency that stayed within range. Both Ripple and Ethereum were still affected by the Bitcoin rally that happened and both attempted to break through resistance levels.
With that said, we might be seeing the beginning of another divergence in those three Cryptocurrencies. So, let’s find how the Cryptocurrencies are doing on November 11th, 2020.
Cryptocurrency Recap
As we described in our introduction, the Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - seem to be on the verge of another divergence after Bitcoin was rallying and the other two were dormant or even worse, falling. This time around we might be seeing a dormant Bitcoin and a rallying Ethereum and Ripple. Let’s take a closer look at how these Cryptocurrencies have fared in overnight trading.
Bitcoin hadn’t moved a whole lot during the overnight trading, as it simply moved in a horizontal line capped between the $15,000 on the bottom and $15,600 on the top. Nothing much has happened to the Cryptocurrency King after it failed to break above the $15,820 and managed to bounce from the $15,000 after the drop.
Ethereum didn’t follow Bitcoin’s lead or consolidate at its current levels, instead Ether managed to find enough momentum to push higher and break above the $460 level. What’s even more interesting about the move in ETH, is that it has actually managed to establish some kind of foothold above that level and is currently attempting to see if there’s enough momentum higher.
Ripple followed Ethereum’s lead this time and skyrocketed higher, breaking through the $0.2570 and the $0.2620 resistance levels. However, the presence of sellers at the level last mentioned proved to be too much for the Bulls as the Cryptocurrency fell back towards $0.2510 as it currently trades higher with much volatility, attempting to break above the $0.2570 again.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 35.65% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 23.83% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 0.00% 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 Bitcoin join the other Cryptocurrencies higher? Or will ETH and XRP falter without the presence of Bitcoin?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin At Crucial Junction
After forming a decent support near $15,000, Bitcoin attempted to move higher, however, the result was more of a consolidation. Even though BTC managed to break the $15,200 pivot level to avoid more losses, it couldn't muster the needed momentum to provide a decent move higher. Bitcoin managed to climb above the $15,400 level, but it seems like the Bulls are facing an uphill task near the $15,500 level.
If BTC gets infected with the downward trend, there’ll seem to be enough support forming around the $15,200 level. It seems like Bitcoin is approaching a major breakout either above the $15,500 resistance or below the trend line support. If there’s a clear break and close above $15,500, the price could rise sharply. The next immediate resistance is near $15,600, above which the price could revisit the $15,850 high.
The risk of a higher break downwards increases dramatically if Bitcoin fails to break above the $15,500 and establish a foothold above that level. On the downside, initial support is near the $15,200 level, and a proper close below that level could trigger a sharp decline. The next key support is near the $15,000 level, below which there’s a risk of a drop below the $14,815 swing low in the near term.
Ethereum Battles Against $470
Ethereum managed to jump start it’s rise after it formed a solid support base at the $440. On the move higher, Ether broke the $450 and $455 resistance levels to move into a positive zone. The upward move is so strong that it even managed to break above the $460 resistance where it currently trades marginally above. A swing high was formed near $467 and the price is currently consolidating gains, but there seems to be some weakness as ETH is trying to break below the $460 support level. However, the first key support is near the $455 level, where the Bulls are likely to emerge.
On the upside, the $468 and $470 levels are important barriers. A successful close above the $470 resistance level might open the doors for a sharp increase. The next key resistance is seen near the $480 level. Any further gains might call for a move towards the $495 and $500 levels.
There are many supports forming for Ethereum, starting with $460. The first key support is near the $455 level. The main support is forming near the trend line at $445. A clear break below the $444 support level might negate the current bullish view. Any further losses may perhaps open the gates for a drop towards the $420 support zone.
Ripple Breaks Resistance or Falls
Ripple price appears to have stalled after taking down the resistance at $0.26. An attempt to push the cross border token to $0.30 hit a massive wall under $0.27. Instead, the fourth-largest Cryptocurrency retreated beneath $0.26. At the time of writing, XRP/USD is teetering at $0.256 amid a developing bearish outlook.
XRP’s immediate upside is capped by the $0.2570 resistance level. The longer Ripple stays underneath that level, the stronger the bearish grip becomes. It’s essential to realize that ascending triangles are interpreted as continuation patterns in technical analysis. A breakout can occur either up or down, however, the price tends to continue with the trend preceding the consolidation. In this case, XRP is likely to break down to the support at $0.22.
The Relative Strength Index suggests that the price is still largely in the hands of the Bulls until a breakdown is confirmed, perhaps by a daily close under the 50 SMA. On the contrary, recovery will come into the picture if Ripple reclaims the position above $0.26. Price action above $0.27 is likely to call for more buy orders as XRP Bulls plan the angle of attack to overcome the resistance at $0.3.
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