Investors in the Cryptocurrencies got surprised by the downward spiral direction of most of the coins last week. Most coins including Bitcoin dropped in price within a very short span of time. A number of factors are responsible for these downward spiral as I posted in my last article on the blog. Lets have a summary of the major events that happened last week before delving into the prospects of the Crypto market, news and other analysis this week.
As I posted earlier, events like the Hacking report at Binance, Regulation by SEC and the fallout effect of the Mx Gox event all led to the crash in price of these crytocurrencies.
IOTA and Dash lost the most, with IOTA falling $0.53 or 27.9% to eventually end at $1.38, and DASH at $109.40 or 18.1% end at $494.88. Dash remains in a very clear downtrend indicated by its line, moving averages and worth structure (lower highs and lower lows). the worth skint through the support of the 200-day MA and is testing support of the Feb swing low of $376.05. Last week’s low was $438.80.
Although falling $0.07 or 8.4% to finish at $0.82, Ripple on its own fell in price to the smallest amount out of the eight cryptos. Earlier within the week, Coinbase put to an end the rumors that it might be adding Ripple to its platform. XRP remains in a very downtrend however higher than its 200-day MA, whereas variety of alternative major cryptos ar below their 200-day MAs. Following closely behind Ripple is Litecoin with a decline of about 12.8%. Litecoin fell $27.28 to eventually end at $186.04 and is struggling with the resistance of its 50-day line. Till last week’s decline, it had command higher than support of the 50-day for the previous few weeks.
Ethereum
On its own, Ethereum completed went down to $129.89 which was a 15.2 % last week to eventually end at $724.61. It remains during a clear downtrend on a each day and is below the 50-day line that continues to fall, however higher than the 200-day MA, that remains rising. Last week’s low was at $637.73, right round the confluence of each the seventy eight. 6 % Fibonacci retracement and therefore the 127.2 % Fibonacci projection. The projection conjointly completed AN ABCD pattern or measured move wherever the second leg down off the swing high at purpose A was around 127.2 % of the worth modification within the initial leg down.
The key resistance to observe is that the close downtrend line. The ETH/USD pair would wish to end higher than that line on a routine before there some sign that the bounce off last week’s bottom at D could continue. If worth|the worth|the value} falls any below last week’s low then next await support round the confluence of many Fibonacci price levels around $612.67. After that, there's a price zone from roughly $587.07 (200-day MA) to the foremost recent swing low of $565.54.
IOTA: showing relative weakness
IOTA has been falling in an exceedingly well-defined downtrend since the height of $5.80 it gained towards the end of last year. Iota was the worst performing currency both last week and even till date since the beginning of the year 2018, down to 60.6 %. As of last week, it takes a position technically which makes it the only crypto out of the eight followed that fell below its previous swing low from February. This can be said to be a proof of relative weakness when put side by side with the other seven cryptocurrencies on the list above. The low from February was at $1.20, and last week the IOTA/USD combine born to $1.136 before reversing higher. Further, the cryptocurrency is currently clearly back below its 200-day MA (purple line) as of last week’s drop, once being higher than it for several weeks before.
Watch out for the daily updates this week as I write on the happenings in the cryptoworld including the foundamentals driving the prices of the different cryptocurrencies. Let me know your different thoughts in the comment section below. I wish everyone a nice week ahead. Cheers!