The Daily Cryptomenon
6th October 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 06.10.2020
The Cryptocurrency market continues to drive itself higher, especially with XRP leading the way. Bullishness seems to be taking over, however the intensity and momentum displayed shows that this move higher might not last as there’s no power behind it. Bears might be waiting for that ideal resistance to stop any kind of movement higher and might even force the Cryptocurrencies to fall back. With that said, let’s find out what today holds for the Cryptocurrencies on October 6th, 2020.
Cryptocurrency Recap
The minor volatility continues to show itself in our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - with the exception of Ripple which has skyrocketed for the second day straight after the announcement that 2 counts of fraud have thrown out in the legal battle that has been going on for quite some time now. Bitcoin finds itself on the upper bound of $10,730 which has been acting as a resistance for sometime, the Cryptocurrency continued to move higher and reached $10,800 where it seems to have settled for the time being. Ethereum has started to show some minor bullishness after the instrument was able to break above the 100 SMA (Simple Moving Average) on the 4-hour Chart. However, that minor bullishness might be turning into consolidation soon as momentum seems to be waning. Breaking above the $0.2500 resistance level is of big importance for Ripple, as that was a key level for the instrument to attempt another move higher towards the $0.3000. The ruling of the court in favor of Ripple has really set things in motion and we could see Bulls getting more and more invested with the movements of Ripple.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues with the minor bullishness it has been experiencing for the past couple of days as it tests the resistance at $10,800, which also helps with the performance which records a 5.88% on a month-to-month basis*. Ethereum (red line) has also begun to see some positive movements as it breaks above the 100 SMA and sets its eyes on higher levels. Performance wise, the Cryptocurrency is printing a 7.91% on a month-to-month basis. Ripple’s (cyan line) performance is the best out of the three, as XRP continues to benefit from the latest court ruling as it prints an increase of 10.38% on a month-to-month basis, blowing BTC and ETH out of the water.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 1st September till the 1st October.
What’s the strategy you’re going to use when it comes to these cryptos? Will the positive momentum continue higher? Or will the Bears find that particular resistance to keep things from moving any higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Finds More Positive Momentum
Bitcoin managed to find some support near the $10,350 zone and recently started a decent recovery wave. This recovery found BTC breaking above the $10,550 and $10,650 resistance levels to move into a short-term positive zone. The upward move was such that the price was able to climb above the 50% Fibonacci retracement level of the main drop from the $10,930 high to $10,387 low. The bulls were able to push the price above the $10,750 level and it tested the $10,800 resistance.
The price is currently facing selling interest near the 76.4% Fibonacci retracement level of the main drop from the $10,930 high to $10,387 low. It seems like yesterday’s highlighted important rising channel is active with support near $10,720 on the hourly chart of the BTC/USD pair.
If bitcoin fails to continue higher above the $10,850 resistance or the $10,920 hurdle, there is a risk of another bearish reaction. An initial support on the downside is the channel trend line at $10,720. A break below the channel support could lead the price towards the $10,650 support. The next major support is near the $10,600 level since it is close to the 100 hourly simple moving average.
Ethereum Remains Top Dog in DeFi
Ethereum is the top dog when it comes to DeFi. Other decentralized finance tokens are built on its blockchain and require ETH gas fees to transact. This also could be why the top-ranked altcoin is held up a lot better than the rest of the DeFi space, which has fallen on average 60% across the board, Ethereum included.
From a Technical point, Ethereum might be poised for another move higher as the 100-SMA has been crossed by the Cryptocurrency upwards and there seems to be more room for another push higher. However, it is currently trading near a support-turned-resistance around the $350, and for Ether to continue moving higher, it needs to break above it to establish it as a support once again. This would give the Bulls the needed momentum to move that extra bit higher.
The RSI (Relative Strength Index) is actually printing just above the 50-level, however the speed of which the movement is showing that the momentum is waning and that Bulls need to step up their game should they wish to remain above the 100-SMA and continue the bullish theme alive.
Ripple Targets $0.3000
XRP found support at the $0.23 level at the start of October. It rebounded from this support yesterday to finally push higher above the resistance at the 100-days EMA – a level which the coin struggled with throughout last week. After breaking the 100-days EMA, XRP climbed into the resistance at $0.251 – provided by a bearish .382 Fib Retracement. The psychological round number of $0.25 further bolsters the area.
Looking ahead, if the buyers manage to stay above the $0.251, higher resistance lies at $0.26 (bearish .5 Fib), $0.271, and $0.28. On the other side, the first level of support lies at the 100-days EMA at $0.243. Beneath this, support is located at $0.237 (200-days EMA), $0.228 (.618 Fib), and $0.22.
Looking at the RSI, the indicator is showing that the instrument is showing extreme overboughtness and that could hurt the Cryptocurrency. We might see XRP fall from the current levels towards the $0.250 support level as a way to correct the current overbought condition. However, the instrument must not break below the $0.2500 else we might find Ripple in consolidation mode and it will be an uphill battle to reach the $0.2600 again.
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