Crypto Updates by Solid ECN

SOLIDECN · March 28, 2022, 1:44pm

BTCUSD, the growth potential of “digital gold” remains

All last week, the BTCUSD 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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SOLIDECN · March 29, 2022, 11:45am

ETHUSD, technical analysis

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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SOLIDECN · March 30, 2022, 11:54am

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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SOLIDECN · March 31, 2022, 11:44am

The ADAUSD pair continues to correct upwards in relation to the long-term uptrend.

Currently, the price is testing the 1.2207 mark, consolidation above which will give the prospect of further growth to the levels of 1.2950 (Fibo retracement of 23.6%) and 1.4100. The key for the “bears” is seen at 1.1230. In case of its breakdown, a correction to 1.0253 is possible and 0.9765, however, so far this option of price movement seems less likely, since the potential for upward movement remains, which is confirmed by technical indicators.

The Bollinger Bands are directed upwards, the MACD histogram increases in the positive zone, and the Stochastic leaves the overbought zone, which does not exclude a decline within the current upward trend, but its potential seems limited.

Resistance levels: 1.2207,1.295, 1.41 | Support levels: 1.1230, 1.0253, 0.9765

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SOLIDECN · April 1, 2022, 12:46pm

Cryptocurrency market review

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.

SOLIDECN · April 4, 2022, 10:12am

BTCUSD, “digital gold” is preparing to continue its growth

After unsuccessful attempts to break the support level of 35800.00 in January-February of this year, the first cryptocurrency strengthened its position and reached the area of 45000, preparing to continue the upward momentum in the mid-term.

The quotes of “digital gold” are supported by the growing geopolitical tensions, which has already caused an increase in energy prices and, as a result, acted as a catalyst for global inflation. In the USA in February the figure was the highest in 40 years of observations of 7.9% in annual terms, and in the eurozone the value reached 7.5%. To protect themselves from risks, large investors direct their capital into alternative means of savings, and bitcoin is one of the most preferred tools for long-term investments at the moment.

The long-term uptrend in the BTCUSD pair is confirmed by technical analysis. Last month, market participants gained a foothold above the level of 45000, and the next target is the mark of 52000. The nearest support level from which new purchases can be considered is at the level of 44000.

The mid-term trend is also upward. Last week, the resistance level of 45800.00 was broken, but then the price adjusted to the area of 44400. A new upward momentum has started from this level, the purpose of which is to update the high of last week and test the resistance level of 48500. Long positions should be considered with a target at 44,400 - 42,400.

Resistance levels: 48500, 52000, 58800 | Support levels: 44000, 42400, 37600

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SOLIDECN · April 5, 2022, 1:24pm

ETHUSD, Murray analysis

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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SOLIDECN · April 6, 2022, 10:47am

XRPUSD, Murray analysis

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]).

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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SOLIDECN · April 7, 2022, 2:24pm

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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SOLIDECN · April 8, 2022, 10:47am

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.

SOLIDECN · April 11, 2022, 10:50am

The BTCUSD pair was actively declining last week and by its end reached the 42200 mark (Fibo retracement 23.6%), which it is actively testing at the moment.

The general pressure on the cryptocurrency sector was exerted by the comments of US Fed officials, indicating an acceleration of monetary policy tightening. In particular, a sharper increase in rates is expected (by 0.50%) and a rapid reduction in the regulator’s balance sheet (by 95B dollars monthly). These measures are aimed at reducing the rate of inflation and should support the exchange rate of the US currency. A number of experts, for example, Galaxy Digital founder Michael Novogratz, believe that the cryptocurrency sector will be under pressure for the entire period of active actions of the US Fed, at least until the end of the year, but as soon as the economic situation stabilizes, we can expect a new serious growth of digital assets.

An additional pressure factor was the ban on the provision of cryptocurrency services to individuals and legal entities from Russia and Belarus, including deposits and maintenance of cryptocurrency wallets. Earlier, experts believed that economic sanctions caused by the Ukrainian crisis would force large Russian capital to enter the crypto market, but there are fewer opportunities for this.

Technically, if the price is consolidated below the 42200 mark (Fibo retracement of 23.6%), the decline in the digital asset will be able to continue to the levels of 40000, 37500 (Murray [4/8]). The key for the “bulls” is the level of 43750 (Murray [6/8]). Its breakout will give the prospect of resuming growth in the area of 46300 (Fibo retracement of 38.2%), 48200 (the area of March highs). Technical indicators do not give a single signal: the Bollinger Bands are directed horizontally, the MACD histogram is preparing to move into the negative zone and form a sell signal, but the Stochastic can leave the oversold zone and form a buy signal.

Resistance levels: 43750, 46300, 48200 | Support levels: 42200, 40000, 37500

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SOLIDECN · April 12, 2022, 12:40pm

The ETHUSD pair started the week lower as part of the general market trend and fell below 3000. Experts continue to link the general weakening of the market with investors’ reaction to the upcoming serious tightening of the US Federal Reserve’s monetary policy. Investors fear that the US economy will react with a slowdown to a sharp increase in interest rates or even start a recession. Yesterday, in this background, the yield of 10-year bonds reached a three-year high of around 2.78%, which led to a decrease in risky assets, including cryptocurrencies. According to several representatives of the cryptocurrency community, the digital asset sector will remain under pressure as long as the regulator continues to tighten monetary policy, which may take a long time. However, after stabilizing the economic situation, serious growth will resume.

As for Ethereum itself, the developers continue to prepare for the transition to the Proof-of-Stake (PoS) algorithm and the launch of the Ethereum 2.0 network. On Monday, the developers tested the merger of the two networks, the so-called “shadow fork,” which was successful but had several minor problems. The next stage of the test is scheduled for April 22. After it, the developers will probably be able to determine the launch date of the Ethereum 2.0 network more accurately, as one of the leading experts, Tim Beiko, hinted at. Ethereum founder Vitalik Buterin previously assumed that the transition to the new system would take place before July of this year.

Technically the price is trading around 2950 (Murrey [6/8], Fibonacci retracement 23.6%). Consolidation below this level allows a decline to 2656.75 (Murrey [1/8]) and 2500.00 (Murrey [0/8]). The key “bullish” level is 3281.25 (Murrey [5/8], Fibonacci retracement 38.2%, the middle line of Bollinger bands). Its breakdown allows growth to 3595 (Murrey [7/8], Fibonacci correction 50.0%), 3900.00 (Murrey [+1/8], Fibonacci correction 61.8%). The indicators do not give a single signal: Bollinger bands and Stochastic are horizontal, and the MACD histogram is preparing to move into the negative zone and form a sell signal.

Resistance levels: 3281.25, 3595, 3900 | Support levels: 2950, 2656.75, 2500.

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SOLIDECN · April 13, 2022, 12:27pm

Ripple continues to trade within a wide descending channel. At the end of last month, quotes tested its upper limit around 0.8930, after which they began to decline, which continues to this day.

The day before, the price tested the level of 0.6836 (Murray [2/8]), fixing below which will give the prospect of further decline to the levels of 0.6348 (Murray [1/8]), 0.5859 (Murray [0/8]) and 0.5371 (Murray [-1/8]). The key level for the “bulls” is seen at 0.7810 (Murray [4/8], Fibonacci retracement 23.6%). If this level is broken out, as well as the center line of Bollinger Bands, the quotes may try to leave the descending channel and return to 0.8930 (Fibonacci retracement 38.2%).

Technical indicators don’t provide a clear signal: Bollinger Bands are reversing downwards, MACD is increasing in the negative zone, and Stochastic has entered the oversold zone, which does not exclude the corrective growth. In general, a continuation of the decline in the long-term downtrend in the near future seems more likely.

Resistance levels: 0.7810, 0.8930, 0.9277 | Support levels: 0.6836, 0.6348, 0.5859, 0.5371.

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SOLIDECN · April 14, 2022, 1:45pm

This week, the ADAUSD pair declined as part of the general market trend and dropped to the 0.913 area. The cryptocurrency sector remains under pressure in anticipation of the US Federal Reserve’s sharp tightening of monetary policy amid strong inflation. According to the latest March data, this figure increased to 8.5%, which increases the likelihood of a rate hike at the next meeting of the US regulator immediately by 0.50%.

Yesterday, the asset managed to win back part of the losses after the comments of the founder of Cardano, Charles Hoskinson. Speaking on his YouTube channel, he announced the imminent Vasil hardfock, which should take place in June and lead to a significant increase in network performance due to the launch of the data pipeline function. The solution will optimize the network for the needs of the growing volume of applications in the DeFi market.

Technically, the crypto asset price continues to trade within a long-term downtrend. The key for the “bears” is 0.9277 (Murrey [3/8]), fixing below which will allow quotes to rush to 0.8300 (Murrey [1/8]), 0.7812 (Murrey [0/8]). The continuation of the downtrend is signaled by the downward reversal of Bollinger bands and the transition of the MACD histogram into the negative zone. The exit of Stochastic from the oversold zone may mean a correction to the area of 1.1000 (the middle line of Bollinger bands), but this is unlikely to lead to a reversal of the downtrend.

Resistance levels: 0.9765, 1.1 | Support levels: 0.9277, 0.83, 0.7812

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SOLIDECN · April 18, 2022, 3:38pm

This week, the BTCUSD pair is declining within the framework of a four-week downtrend. The quotes of “digital gold” have dropped to the area of 39000 and are likely to continue negative dynamics in the near future. Pressure on the asset is exerted by two main factors: the expectation of further tightening of monetary policy by the US Fed and the traditional profit-taking by investors during the holidays.

Experts believe that the officials of the American regulator will continue to sharply increase the interest rate (by 0.50% or more) in order to prevent the growth of inflation. These measures will undoubtedly contribute to strengthening the position of the USD, but will put pressure on alternative assets, including cryptocurrencies, which may persist until the situation in the US economy stabilizes.

It should also be noted that over the weekend, short-term support for prices was provided by the nomination by US President Joe Biden of Michael Barr for the post of chief responsible for large banks at the US Fed. Since 2015, Barr has worked as a consultant for Ripple Labs, so he is well acquainted with the crypto industry. The appearance of another supporter of cryptocurrencies among the officials of the American regulator may contribute to the adoption of digital assets by American government structures. However, long-term pressure factors are currently seen as strong enough to ensure further price declines.

Technically, the price continues to be within a wide ascending channel and is now tending to its lower limit. The nearest reduction targets may be 37500 (Murray [4/8]) and 35300 (Fibo retracement of 0.0%). The key for the “bulls” is 42200 (Fibo retracement of 23.6%), the breakout of which will allow the instrument to strengthen up to the levels of 43750 (Murray [6/8]), 46300 (Fibo retracement of 38.2%). Technical indicators signal the continuation of the downward trend: the Bollinger Bands and the Stochastic are reversing downwards, the MACD histogram is increasing in the negative zone.

Resistance levels: 42200, 43750, 46300 | Support levels: 37500, 35300

SOLIDECN · April 19, 2022, 11:07am

Last week, the ETH/USD pair entered the main sideways range of 3125–2950 (Murray [4/8], Fibonacci retracement 23.6%), where it is currently trading. The breakdown of its lower border will give the prospect of further decline to the levels of 2656.25 (Murray [1/8]) and 2500 (Murray [0/8]). The key “bullish” zone is 3220–3281.25 (the middle line of the Bollinger Bands, Fibonacci retracement 38.2%), consolidation of the price above which will allow the cryptocurrency to continue its upward dynamics up to the level of 3590 (Fibonacci retracement 50.0%, Murray [7/ 8]), however, a resumption of decline remains most likely soon.

Technical indicators confirm the continuation of the downward trend: Bollinger bands are turning downwards, the MACD histogram is increasing in the negative zone, and the Stochastic reverses upwards, which may mean the development of an upward correction, but its potential is seen as limited.

Resistance levels: 3220, 3281.25, 3437.5, 3590 | Support levels: 2950, 2656.25, 2500

SOLIDECN · April 21, 2022, 11:43am

The ADAUSD pair continues to move within the long-term downtrend.

Last week, the price corrected down and entered the main range of 0.9765–0.9277 (Murrey [4/8]–[3/8]), and consolidation below its lower border will give the prospect of further downward dynamics of quotations to 0.8300 (Murrey [1/8 ]), 0.7800 (Murrey [0/8]). The key “bullish” level is 1.0253 (Murrey [5/8], the middle line of Bollinger bands). If it breaks up, the token may rise to 1.1230 (Murrey [7/8]) and 1.1718 (Murrey [8/8]).

In general, the downward trend in the ADAUSD pair continues, which confirms the downward reversal of Bollinger bands and the increase in the MACD histogram in the negative zone. At the same time, the upward reversal of Stochastic does not rule out an upward correction, but its potential looks limited.

Resistance levels: 1.0253, 1.1230, 1.1718 | Support levels: 0.9277, 0.8300, 0.7812

SOLIDECN · April 22, 2022, 12:54pm

This week, the cryptocurrency market made a moderate attempt to grow, but it was not crowned with significant success. BTC is currently trading around 40600.00 (+0.8%), ETH is at 3000.00 (-1.5%), USDT is around 1.0002 (+0.01%), BNB is moving around 410.00 (+0.8%), while USDC is in the 0.9998 area (+0.01%). By the end of the week, the total market capitalization decreased to 1.885T dollars, and the share of BTC was 41.06%.

The cryptocurrency sector remains under pressure due to the expected tightening of the monetary policy of the US Federal Reserve. A sharp reduction in the regulator’s balance sheet and an increase in rates should support the position of the US currency against alternative assets, including digital ones. This prospect has already led to institutional investors’ partial withdrawal of capital from crypto assets. According to CoinShares, an active withdrawal of funds has been going on for the second week, and since the beginning of this month, capital outflow from BTC has amounted to $196M. A similar picture is observed in other leading cryptocurrencies – ETH, ADA, and SOL. The withdrawal of funds by major players will likely continue soon, which will put pressure on the entire sector. Despite long-term factors, leading digital assets have stabilized this week, helped by the nomination of Michael Barr, who previously served on the advisory board of Ripple Labs Inc., to the post of chief officer for large banks at the US Federal Reserve. The official was a member of it from 2015 to 2017 and dealt with the issues of reducing the cost of money transfers for citizens of developing countries. Barr’s confirmation is unlikely to help Ripple in its lawsuit against the Securities and Exchange Commission (SEC), but it could speed up the adoption of cryptocurrencies by the US government.

As for XRP, the token became an underdog among the sector leaders during the week, as it came under pressure from court news. The court refused to grant Ripple’s motions to exclude from the case the report of Dr. Albert Metz, proving that Ripple Lab Inc. could influence the price of XRP tokens through news and public announcements. This decision significantly weakens the company’s position in the dispute with the regulator. Among other cryptocurrency news, it is worth noting a serious increase in the number of validators in the Ethereum Beacon Chain test network. Since the beginning of March, their number has increased by 50K and now stands at about 350K. At the same time, 11.6M ETH has already been blocked in the network itself. The dynamics are explained by the expectation of the imminent final transition of Ethereum from the Proof-of-Work (PoW) algorithm to the Proof-of-Stake (PoS) algorithm. Cryptocurrency exchange Coinbase has begun testing a platform for trading NFT tokens on the Ethereum blockchain. Soon, it is planned to add support for NFT on other blockchains. Clients will be able to trade and store NFTs and pay for them with a credit card. The management of the FTX cryptocurrency trading platform and The Goldman Sachs Group Inc. held talks on close cooperation. Goldman Sachs could provide financial support to FTX if the latter goes public and provide traditional banking services to the exchange’s clients. Experts note that in this way The Goldman Sachs Group Inc. is trying to strengthen its position in the cryptocurrency market.

Next week, quotes of most digital assets may continue to decline or consolidate.

SOLIDECN · April 25, 2022, 12:12pm

Last week, the BTCUSD pair had an ambiguous trend: the quotes rose to the 42950 area but then lost all the gains and fell to 38500, where they are now being traded.

The cryptocurrency sector is under pressure from a likely sharp change in monetary policy parameters by the US Federal Reserve at its next meeting in May. Last Thursday, the head of the US regulator, Jerome Powell, announced the need to increase the interest rate by 50 basis points to slow down the growth of record inflation. The “hawkish” policy of the authorities will strengthen the dollar’s position relative to other assets, including cryptocurrencies. Against this background, there is an outflow of funds from major players in the market. ETH, ADA, and SOL suffered the most, but BTC is the leader in capital loss. According to the analytical company CoinShares, the active withdrawal of funds from the first cryptocurrency has been going on for the second week, and since the beginning of this month, “digital gold” has lost 196M dollars of investor funds.

SOLIDECN · April 26, 2022, 9:59am

Since the beginning of this month, the ETHUSD pair has maintained a downward trend: earlier, the price dropped to the area of 2800, but then regained lost positions, returning to the 3000 mark.

The trading instrument is influenced by two main opposite factors. The expectation of a sharp increase in interest rates from the US Fed at a meeting in early May exerts pressure on the positions of ETH, as well as on the rest of the cryptocurrency sector. The consequence of this may be the strengthening of the US currency, but already there is an outflow of capital from the largest digital assets (BTC, ETH, ADA, SOL and others). So, over the past three weeks, ETH has lost about 59.3M dollars, or about a third of the total amount of funds withdrawn from the sector during this period.

On the other hand, the rapid transition of the Ethereum network from the Proof-of-Work (PoW) algorithm to Proof-of-Stake (PoS) prevents the decline in quotations. Despite the fact that the merger of the Ethereum and Ethereum 2.0 networks was postponed for several months (previously it was assumed that it would happen in June), investors remain optimistic, believing that the new network will significantly speed up transaction processing and ETH will be able to catch up with digital gold in capitalization.

Currently, the key zone for the “bulls” is 3065-3125 (the middle line of the Bollinger Bands, Murray [4/8]), with the breakout of which upward dynamics will continue to 3281.25 (Fibo retracement of 38.2%, Murray [5/8]), 3437.5 (Murray [6/8]). Consolidation of the price below the level of 2925 (Fibo retracement of 23.6%) will give the prospect of a decline to the levels of 2812.50 (Murray [2/8]), 2656.25 (Murray [1/8]), 2500 (Murray [0/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, but the Stochastic has reversed upwards.

Resistance levels: 3125, 3281.25, 3437.5 |Support levels: 2925, 2812.5 2656.25, 2500