Weekly crypto-market analysis from Geco.one 17.05.2021
Recent days have brought an actual sale on the cryptocurrency market. The prices of the vast majority of virtual assets fell by several dozen per cent. This depreciation caused the price of Bitcoin to drop by over $ 22,000, reaching the level of $ 42,000, which is the lowest level since the first half of February this year.
Looking at the Bitcoin quotes, we notice that the price of the oldest virtual currency has fallen to the technical support of $ 44,000 in recent days. So far, however, there has been no significant demand reaction here pointing to a potential rebound from this zone and a return to gains.
Perhaps such a reaction will appear soon, but as long as it is not there, it cannot be ruled out that the Bitcoin price will continue its downward trend, thus sliding to the level of $ 41,000 or even to $ 30,000.
The current situation on the Ethereum quotation is also not very optimistic, the price of which has dropped by over 28% in recent days, Thus reaching the area of technical support of $ 3,200. It is where the demand response appeared this morning.
Rejecting this zone does not have to mean, however, a return to growth immediately. As a result of the last sell-off, the market broke technical support of $ 3,600, and this may only be a re-test of this level.
Therefore, if there is a supply response near the currently tested level, the ETH price could drop not only to $ 3,200 but even to the region of $ 2,615.
The Litecoin quotes are also very similar, which has dropped by over 36 per cent in recent days. Thereby overcoming two technical support levels around $ 335 and $ 296, respectively. Unfortunately, this depreciation stopped only around the next support of $ 265, where there was a demand response this morning.
However, we cannot rule out that the current gains will be limited to a re-test of the recently defeated support (now resistance) of $ 296. If only in the vicinity of these zones there is a more significant supply response again, the LTC rate could, in turn, slide to the area of $265, $242, or even $216.
We could also expect potential declines soon in the ATOM quotations, the price of which has been moving within a parallel growth channel for a long time.
Considering that the quotation of this cryptocurrency took place some time ago from the upper limit of this formation, it seems very likely that if only the downward trend continues, its price will slide towards the upward trend line, which is the lower limit of the channel.
Looking at the XRP quotes, we can see that this project resisted the sale that we observed for several days in the projects mentioned above (and more). Instead, the price of this cryptocurrency has been moving in a horizontal trend for over a month, filling the formation of an isosceles triangle.
It is worth noting here that triangles are technically neutral formations. First, it means that the probability of a breakout from the top is the same as the probability of a breakout from the bottom. Second, it means that waiting may be the best solution in the event of a given occasion. Therefore, only the direction of the breakout from the formation will determine the future direction of XRP quotations.
You can find more comments on the cryptocurrencies described above and analyse a few more in the market review from Geco.one on Comparic Markets TV.