- Current levels do not justify negative market sentiment.
- The panic created by Covid-19 could underpin the mass adoption of Blockchain technology.
- The main moving averages provide key support levels after the sharp rises from the December levels.
We have arrived at the mid-week with the crypto market accelerating on the downside, with the top 3 assets moving directly to the next support level.
As the price of cryptocurrencies decreases, the adoption of blockchain technology continues to grow.
Let's take a look at the latest developments in this regard:
- MoneyGram Expands Ripple Partnership With $11.3 Million. The MoneyGram money transfer network has earned over $11 million from the chain payment company Ripple Labs.
- The current health crisis caused by the Covid-19 could accelerate the launch of the first digital state currencies or DCEP. ZHU Youping, blocking chain economist and deputy director of China's Economic Information Network under the State Information Center, revealed his views on this issue. He said:
“the coronavirus will accelerate the development of online business. Just like atypical pneumonia in 2003 that has proven to be a catalyst for 20-year prosperity for e-commerce. We all know that the coronavirus can be alive for 24 hours in paper materials, which gives us a strong reason to push for the development of DCEP.”
The market sentiment, according to the alternative.me website, has reached the 41 mark, deepening the level of fear felt by people investing in cryptocurrencies.
ETH/BTC Daily Chart
ETH/BTC is currently trading at the price level of 0.0258, where price congestion support offers the first opportunity to stop price declines. At the moment, this is not the case and the price pierces this support level easily.
Above the current price, the first resistance level is at 0.027, then the second at 0.0278 and the third one at 0.029.
Below the current price, the first support level is at 0.025, then the second at 0.023 and the third one at 0.022.
The DMI on the daily chart shows that the bears are now reacting to the bullish trend and are threatening the bearish domination of the ETH/BTC pair.
BTC/USD Daily Chart
BTC/USD is currently trading at the price level of $9154 and is losing the support of the EMA50. The SMA200 at the $8800 level is the next target for the bearish trend.
Above the current price, the first resistance level is at $9400, then the second at $9600 and the third one at $10400.
Below the current price, the first support level is at $8800, then the second at $8400 and the third one at $8280.
The MACD on the daily chart increases the bearish profile and also the width between the lines. The current setup, being so close to the neutral level of the indicator, worsens the short-term forecast.
The DMI on the daily chart shows that the bears are taking control. If the sell-side manages to move above the ADX line, it will confirm the medium-term time range for the current bearish momentum.
ETH/USD Daily Chart
ETH/USD is currently trading at the price level of $236.2 and is looking for support in the lower consolidation range. Moving averages continue to be far out and there is no such support up to the $215 price level.
Above the current price, the first resistance level is at $250, then the second at $260 and the third one at $290.
Below the current price, the first level of support is at $238, then the second at $230 and the third one at $223.
The MACD on the daily chart increases the bearish trend, as the downward slope and the distance between the lines increases.
The DMI on the daily chart shows how the two sides of the market will meet in the next few hours, a meeting that will define the price movement in the short term.
XRP/USD Daily Chart
The XRP/USD pair trades at the price level of $0.241 and rebounds after reaching the SMA200 level at $0.234. The XRP price should not fall below this level if you want to avoid a return to a bearish scenario in the short term.
Above the current price, the first resistance level is at $0.253, then the second at $0.27 and the third one at $0.282.
Below the current price, the first support level is at $0.233, then the second at $0.23 and the third one at $0.22.
The MACD on the daily chart shows a clear bearish profile that faces the support provided by the 0 levels of the indicator.
The DMI on the daily chart shows that the bears are taking control of the pair, although they are not yet above the ADX line.
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