Tanya Abrosimova
Independent Analyst
- Cryptocurrency market observes the ranges amid directionless trading.
- Ripple's XRP breaks below $0.4800, no followthrough as of yet.
- Experts advise against active trading as long as the rangebound trading prevails.
Cryptocurrency market is still paralyzed by a combination of multi-month low volatility and depressed trading volumes. The total capitalization of the market has settled slipped to $219B from $220B the day before.
BTC/USD is changing hands at $6.557 after a failed attempt to clear $6,600 handle. The digital coin No. 1 is absolutely directionless now, while short-term technical picture confirms that more consolidation is in store.
Ethereum is sandwiched between $230 on the upside and $224 on the downside. The second largest coin by market value is down 0.75% on a day-on-day basis, changing hands at $226 by press time.
Ripple’s XRP broke below $0.4800 on Tuesday to trade at $0.4755 at the time of writing. The coin is down 1.6% on a day-on-day basis, with the recovery attempts limited by $0.4844 (SMA50, 1-hour chart).
Bitcoin Cash (BCH) clinches to $500 handle. This area has been serving as a good support since September 26. BCH/USD has lost 1.6% in recent 24 hours to trade at $517, following the consolidation pattern typical for the cryptocurrency market in general.
Keep calm and wait for the right time to come
The cryptocurrency market has been a dull and uneventful place for some time now, prompting investors to withdraw until the situation clears out. The decline of volatility keeps Bitcoin and most other coins trading inside tight ranges, building up pressure that will be eventually released. Experts recognize this situation as potentially dangerous and recommend to stay on the sidelines.
“Investors should remain patient and wait for evidence of an improvement in ‘trend’ before increasing exposure. A move above the September real and relative highs remains the key resistance/reversal level that will need to be exceeded to signal the early stages of a trend reversal.” Rob Sluymer, the technical strategist at Fundstrat Global Advisors, explained in a recent research note.
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