Cryptocurrencies Market Update ➡️ Solid ECN

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ETHUSD, technical analysis​

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The ETHUSD pair continues to grow for the second week in a row, correcting against the long-term downward trend.

Technical indicators do not give a single signal: the Bollinger Bands are reversing upwards, the MACD histogram is increasing in the positive zone, but the Stochastic is preparing to leave the oversold zone and form a sell signal. In general, the growth potential looks limited, although it is possible, but the overall long-term downward trend remains.

Resistance levels: 3125, 3281.25.
Support levels: 2812.5, 2656.25, 2500, 2343.75.​

 

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ADAUSD, technical analysis

The growth of the ADAUSD pair continues for the second week in a row, adjusting to a long-term downward trend. Currently, the price has reached six-week highs around 1.1450.

The key for the "bulls" is the 1.1718 mark. Its breakout will give the prospect of further growth to 1.285 and 1.465. In case of a breakdown of the 0.9765 level the decline may resume up to 0.781. In general, the potential for upward movement is still preserved, as evidenced by the upward reversal of the Bollinger Bands and the Stochastic, the MACD histogram increases in the positive zone, but the entry of the Stochastic into the overbought zone and the exit of the price chart beyond the upper Bollinger Band do not exclude the possibility of a decline.

Resistance levels: 1.1718,1.2850, 1.4650.
Support levels: 0.9765, 0.7810.​

 

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BTCUSD, the growth potential of "digital gold" remains

All last week, the BTC/USD pair continued its upward trend and today reached the 47500 mark. The positions of "digital gold" are strengthening against the backdrop of the protracted Ukrainian crisis and the sanctions war, which is an additional incentive for the growth of global inflation and the depreciation of fiat currencies.

An additional driver of growth was the statement of representatives of the Russian authorities about the possibility of trading energy for cryptocurrency, which can lead to serious investments in the sector. No official decision has been made on this, but it is being worked out. Earlier it was reported that digital assets can become a base for payments for ordinary goods supplied, for example, from Turkey. Perhaps in the near future, access to the digital market will be facilitated for ordinary Russians, at least the chairman of the Russian government Mikhail Mishustin stated the need to integrate the mechanism of turnover of digital currencies into the financial system of the country. A number of experts believe that the short-term support for the market is also provided by the acquisition of 1.1B dollars worth of BTC by Luna Foundation Guard (LFG) to ensure the stability of the UST stablecoin.

Nevertheless, it cannot be ruled out that the entry of large Russian assets into the digital market will be able to meet obstacles from US and EU regulators, since they are not interested in circumventing the imposed economic restrictions. Thus, the US Congress continues to discuss a law allowing the National Ministry of Finance to block transactions of cryptocurrency exchanges from the addresses of persons included in the sanctions lists. US Treasury Secretary Janet Yellen once again confirmed that cryptocurrencies can pose a threat to financial stability and be an instrument of illegal activity, even though they occupy an increasing place in investment activities.

Technically, the price is testing the resistance zone 46300 - 46875. Consolidating above it will give the prospect of growth in the area of 50000. In case of a breakdown of the 43750 mark, the beginning of a decline to the levels of 42000 and 37500 is not excluded. The indicators point out the continuation of the upward trend: the Bollinger Bands are directed upwards, the MACD histogram is increasing in the positive zone, and the Stochastic is horizontal in the overbought zone.

Resistance levels: 46875, 50000.
Support levels: 43750, 41000, 37500.​

 

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ETHUSD, technical analysis​

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The ETHUSD pair continues to grow actively, correcting upwards in relation to the mid-term downward trend.

This week, the price of the cryptocurrency reached the level of 3437.5, which it is currently testing. Consolidation above it will give the prospect of further upward dynamics to the 3600 and 3900. The key level for the "bears" is 3125, the breakdown of which will allow quotes to fall to the area of 2920.00 (Fibo retracement of 23.6%, the middle line of Bollinger Bands) and 2500, but so far this option of price movement seems less likely, since the indicators point out the continuation of the upward trend: the Bollinger Bands and the Stochastic are directed upwards, and the MACD histogram increases in the positive zone.

Resistance levels: 3437, 3600, 3900.
Support levels: 3125, 2920, 2500.​

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XRPUSD, correction within the uptrend​

At the beginning of the week, the XRP/USD pair continued to grow and rose to the 0.9130 area, after which it corrected downwards. However, the general upward trend persists.

According to several experts, the token could be under pressure due to a new initiative of Chris Larsen, one of the leaders of Ripple. He supported Greenpeace and several other organizations' "Change the Code, Not the Climate" campaign to use greener algorithms instead of Proof-of-Work with 5M dollars. However, the idea was received strongly negatively in the cryptocurrency world, and Larsen was accused of hypocrisy and even promoting the interests of his currency, XRP. Market participants questioned the motives of the creator of Ripple, noting his indifference to environmental issues during his company's use of environmentally harmful technologies in the past. Also, the very attempt to put pressure on the 50 leading market participants seems dangerous to crypto enthusiasts since they advocate maximum decentralization.

As for the litigation between Ripple and the US Securities and Exchange Commission (SEC), there has been some lull here as the court awaits responses from the digital company to new regulator charges that must be filed before April 8.
On the daily chart, there is a formation of successive Doji candlestick analysis patterns below 0.8479, which indicate uncertainty in the market and signal a likely downward reversal. A confirming signal to sell is the formed Shooting star model, which formed under the resistance level of 0.9131. The long shadow of this candle emphasizes the exhaustion of the "bulls" and the activation of sellers at the current level. At the moment, the asset may test the support level of 0.7831. If it is broken by the "bears," the price will continue its downward movement to 0.6961–0.4193. An alternative scenario can be implemented if the quotes consolidate above 0.9131.

Resistance levels: 0.9131, 1.0157, 1.1346, 1.2814 | Support levels: 0.7831, 0.6961, 0.5887, 0.4193​

 

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Cryptocurrency market review​

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The cryptocurrency market started the week with an attempt to grow but then moved to a decline and lost all the gained positions. BTC is currently trading around 44500.00 (–3.4%), ETH is at 3200.00 (+0.9%), USDT is around 1.0003 (–0.01%), BNB is at 420.00 (–2.5%), while USDC is around 0.9998 (+0.02%). The total capitalization has decreased to 2.066T dollars, and the share of BTC has fallen to 41.3%.

The struggle between two trends continues in the market: hopes for an influx of investments in the sector due to global financial instability and fears of the introduction of tougher regulation of the cryptocurrency market by the US and the EU. The sector's growth at the beginning of the week is associated with the withdrawal of investors into digital assets amid a significant increase in inflation and the depreciation of fiat currencies. Also, the market was hoping for significant investments after hints from the Russian authorities that goods produced in Russia, including energy, could be sold for cryptocurrencies. Currently, such a mechanism is being worked out at the highest level. Turkey may become the first country with which trade will be carried out based on cryptocurrencies. Several experts believe that the Luna Foundation Guard (LFG) acquisition of BTC in the amount of 1.1B dollars to ensure the stability of the UST stablecoin also provides short-term support to the market.

Despite the general enthusiasm of investors, by the middle of the week, the market began to correct, which continues to this day. The EU and the US authorities are still very wary of the continued adoption of cryptocurrencies in society and are constantly reminded of this, calling for the development of clear regulations for the digital asset market. This week, the European Systemic Risk Board (ESRB) warned that cryptocurrencies in general and stablecoins, in particular, pose a threat to European financial stability that needs to be countered with the necessary regulatory action. Earlier, US Treasury Secretary Janet Yellen spoke in a similar vein, stating that cryptocurrencies can be an instrument for illegal activities, although they occupy an increasing place in the investment activities of US citizens. Currently, the European Parliament is preparing amendments to the rules on combating money laundering (AML), which provide for the abolition of anonymity for any cryptocurrency transaction. The means to ensure this requirement has not yet been established, and the European Central Bank (ECB) has spoken out against such a decision. Previously, crypto-currency companies were only required to identify the transaction recipient of over 1,000 euros.

Among other market news, it is worth highlighting the scandal in the cryptocurrency community caused by the initiatives of several environmental organizations. So, Greenpeace, together with other environmentalists, launched an information campaign called "Change the code, not the climate" to pressure the BTC community to move from the Proof-of-Work algorithm to a greener one. The campaign was supported by one of the leaders of Ripple, Chris Larsen, who allocated $5M for its implementation. The crypto community reacted negatively to this initiative and accused Larsen of hypocrisy and promoting the interests of his currency (XRP). Experts say that while he was earning his millions using environmentally harmful technologies, he was not interested in ecology. Also, the very attempt to put pressure on the fifty leading digital companies (mining, crypto-exchanges, and so on) seems to the cryptocurrency community a dangerous attempt by third parties to dictate their will to independent digital asset enthusiasts.

Next week, quotes of most cryptocurrencies may continue to decline or consolidate.​

 

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ETHUSD, Murray analysis​

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The ETHUSD pair has been actively adding in value since the middle of last month, correcting upwards in relation to the mid-term downward trend.

Earlier, the price of the crypto asset tested the mark of 3593.75 (Murray [7/8], Fibo retracement 50.0%), consolidation above which will give the prospect of further growth to the levels of 3750.00 (Murray [8/8]), 3900.00 (Murray [+1/8], Fibo retracement 61.8%). The key for the "bears" seems to be the level of 3280.00 (Murray [5/8], Fibo retracement 38.2%). In case of its breakdown, correction to 2965.00 (Murray [3/8], Fibo retracement 23.6%), 2812.50 (Murray [2/8]) is not excluded, however, so far this option of price movement seems less likely, since technical indicators point out the continuation of the current trend: the Bollinger Bands are directed upwards, the MACD histogram is increasing in the positive zone, the Stochastic has entered the overbought zone, but is also directed upwards.

Resistance levels: 3593.75, 3750, 3900 | Support levels: 3280, 2965, 2812.5.​

 

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XRPUSD, Murray analysis​

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Last week, the XRP/USD pair tested the upper limit of the descending channel, rising to the area of 0.8930 (Fibo retracement of 38.2%), but then began to decline and today tested the 0.7812 mark (Murray [4/8], Fibo retracement of 23.6%). If consolidated below it, the price will continue to decline along the upper border of the descending channel to the levels of 0.7324 (Murray [3/8]) and 0.6836 (Murray [2/8]). The key for the "bulls" is the resistance zone 0.8930-0.8789 (Fibo retracement 38.2%, Murray [6/8]). Its breakdown will be able to cause further growth to the levels of 0.9800 (Fibo retracement of 50.0%, Murray [8/8]), 1.0254 (Murray [+1/8]).
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Technical indicators do not give a single signal: the Bollinger Bands are horizontal, the Stochastic is reversing downwards, the MACD histogram is shrinking in the positive zone. In general, the resumption of the decline within the long-term downward trend in the near future seems more likely.

Resistance levels: 0.893, 0.98, 1.0254 | Support levels: 0.7812, 0.7324, 0.6836​

 

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This week, the ADAUSD pair was actively correcting downwards as part of the general market trend.

The pressure on the cryptocurrency sector is associated with the expected sharp tightening of monetary policy by the US Federal Reserve, which will lead to the strengthening of the dollar against major alternative assets. The minutes of the last meeting of the American regulator, published yesterday, confirmed that officials intend to start reducing the balance sheet by 95B dollars a month from May while increasing interest rates by 0.50% is allowed. The "hawkish" policy is expected to continue until the end of this year. A well-known crypto enthusiast and founder of Galaxy Digital, Mike Novogratz, believes that during this period, BTC, and therefore altcoins in general, may remain under pressure but as soon as the US Federal Reserve pauses in tightening monetary policy, a serious increase in cryptocurrencies will resume.

Cardano blockchain and ecosystem continue to develop actively. Since the beginning of the year, the number of active wallets has increased by 500K and exceeded 3.2M. Most of them contain ADA tokens in 100 to 100K dollars. This week, Da Vinci Locker (DVL), a new cross-chain NFT marketplace based on the Cardano blockchain, was launched. The main goal is that any owner of a unique intellectual product can turn it into an NFT token and sell it without intermediaries. DVL will use Cardano's version of OpenSea smart contracts. The marketplace is currently distributing DVL utility tokens.

Despite this positive news, the fundamental picture remains unfavorable for the market, and the ADA price is under pressure.

The price is testing 1.0742 (Murrey [6/8]), consolidation below which allows a decline to 0.9765 (Murrey [4/8]) and 0.8789 (Murrey [5/8]). The key "bullish" level is (Murrey [8/8]). The consolidation above may cause growth to 1.2950 (Fibonacci correction 23.6%). The indicators do not give a single signal: Bollinger bands are directed upwards, the MACD histogram decreases in the positive zone, and Stochastic has rushed down.

Resistance levels: 1.1718, 1.295 | Support levels: 1.0742, 0.9765, 0.8789​

 

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Cryptocurrency Market Review

This week, the cryptocurrency market has corrected downwards. BTC is currently trading around 43500.00 (–6.5%), ETH is at 3250.00 (–8.0%), USDT is around 1.0002 (+0.01%), BNB is at 435.00 (–4.1%). %), and USDC is around 0.9999 (+0.01%). The total market capitalization has decreased to 2.025T dollars, and the share of BTC in it has decreased to 40.98%.

The correction was associated with the expected sharp tightening of the US Federal Reserve's monetary policy, which could strengthen the US currency against alternative assets, including digital instruments. Published this week, the minutes of the last meeting of the US Federal Open Market Committee (FOMC) said that from May, officials intend to begin reducing the balance sheet by $95B a month while allowing an increase in interest rate growth by 0.50%. It is expected that an aggressive monetary policy will continue at least until the end of this year. Bloomberg L.P. analysts noted another danger of the current situation. In their opinion, the tightening of monetary policy may put pressure on the stock market, which will pull the markets for raw materials and cryptocurrencies in the event of a collapse. Mike Novogratz, a well-known crypto enthusiast and founder of Galaxy Digital, believes that while the US Federal Reserve raises rates, BTC and altcoins may remain under pressure. Still, serious cryptocurrency growth will resume as soon as the regulator pauses in tightening monetary policy and the economic situation stabilizes.

Representatives of large financial institutions have made several comments and initiatives. On Monday, UK Chancellor of the Exchequer, John Glen, announced that the government would develop legislation to regulate the use of stablecoins for electronic payments. These cryptocurrencies will be included in the legal space, and the Bank of England will take care of their regulation. The officials will also consider the potential of using blockchain to create British government bonds or securities. Glen noted that the authorities see great potential for digital assets, while the head of the Bank of England, Andrew Bailey, is of the opposite opinion. He spoke about the growing use of cryptocurrencies for criminal purposes and called on technology companies to work more actively with the regulator to eliminate the possibility of fraud and illegal activities. The head of the US Securities and Exchange Commission (SEC), Gary Gensler, once again called for closer cooperation with the US Commodity Futures Trading Commission (CFTC), which will regulate and control the platforms on which securities and any other assets are traded, in including cryptocurrencies, the status of which has not yet been fully determined.

Meanwhile, Meta Platforms Inc. discusses the possibility of launching a cryptocurrency within its metaverse. Creating an internal digital currency operating in various applications is being considered. Also, the social network will be able to reward active participants or the most popular authors with it. American cryptocurrency exchange Coinbase has entered the Indian market. Representatives of the company said that the citizens of India show a serious interest in cryptocurrencies and a desire to use new products, which makes this market promising, despite the country's strict legislation. Also, this week, the Da Vinci Locker (DVL) cross-chain NFT trading platform, created based on the Cardano blockchain, was launched. Its main goal is that any owner of a unique intellectual product can turn it into an NFT token and sell it without intermediaries. DVL will use Cardano's version of OpenSea smart contracts.

Next week, quotes of most cryptocurrencies may continue to decline or consolidate.​