- The U.S. Congress heavily pressures Facebook’s Libra launch.
- This is the legal battle we've all been waiting for.
- The market ignores the threat and continues in a "bullish only" mode.
Americans celebrate becoming independent from the will of the King of England and in the spheres of the political and financial power of the American giant another independence is being questioned.
Five House of Representatives Democrats sent an official letter to the top executives of Facebook, Libra, and Calibra to freeze the implementation of their cryptocurrency project.
In the letter, they adduce a full battery of reasons, according to which Libra could pose a severe risk to the stability of the global financial system and specifically a national security problem for the U.S.
The communiqué uses bleak language. The first sentence demands a moratorium in the implementation of the project. Facebook and Libra have shown their full willingness to talk to regulators and work together on issues such as security, privacy, and financial stability.
Nevertheless, the news has not had an impact on the crypto market. The main assets of the sector continue to develop a consolidation phase while the Altcoin segment led by Ethereum is being configured to start recovering the value lost against Bitcoin.
ETH/BTC Daily Chart
ETH/BTC is quoted at 0.0253 and meets the technical standard that the MACD configuration has indicated. In today's analysis, we will see what this indicator proposes for the weekend.
Above the current price, the first resistance level is at 0.0269 (price congestion resistance), then the second one is at 0.0275 (price congestion resistance) and the third at 0.0292 (price congestion resistance and EMA50).
Below the current price, the first support level is at 0.025 (price congestion support), then the second support level at 0.023, and the third one at 0.0222 (price congestion support).
The MACD on the daily chart shows a bullish cross failure setup. This type of structure is followed by a valid bullish cross in a short period.
The DMI on the daily chart also shows a spin setup. The bears, after losing the ADX line have tried to confirm the bearish cross coming from below and should now undertake a path to lower levels while the bulls should take control in the next few days.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the $11.632 price level and continues to develop a consolidation scenario.
Below the current price, the first resistance level is at the cycle highs of $14,000, then the second is at $17,100 (price congestion resistance), and the third one is at historical highs of $19,690 at the daily close.
Below the current price, the first support level is at $11,250 (price congestion support), then the second at $10,650 (price congestion support) and the third one at $9,675 (price congestion support).
The MACD on the daily chart shows a slightly negative structure. On Wednesday, the indicator tried to cross up again but failed, leaving the lines very close together but crossed down. This type of construction usually develops accelerating the falls.
The DMI in the daily chart shows the bulls keeping in control but with little advantage over the bears. Both are below the ADX line, indicating small trend force on both sides.
ETH/USD Daily Chart
ETH/USD is currently trading at $294.3 and remains above the significant congestion support price at $290.
Above the current price, the first resistance level is at $307 (price congestion resistance), then the second at $317 (price congestion resistance) and the third one at $332 (peak to daily close and price congestion resistance).
Below the current price, the first level of support is at $290 (price congestion support), then the second is at $260 (price congestion support and EMA50), with a drop of more than 10% from the top level. The third one is at $250 (price congestion support).
The MACD on the daily chart shows a relatively smooth bearish profile with a little opening between the lines. It is an indefinite structure with a bearish background.
The DMI on the daily chart shows bulls dominating the market but with little advantage over bears. The bulls stay above the ADX line, which would allow them to move quickly upwards if money starts to enter the Ethereum.
XRP/USD Daily Chart
The XRP/USD is currently trading at the $0.393 price level and shows its inability to pass the EMA50 in the last 4 days.
Above the current price, the first resistance level is at $0.41 (EMA50 and price congestion resistance), then the second at $0.413 (price congestion resistance) and the third one at $0.427 (price congestion resistance).
Below the current price, the first level of support is at $0.39 (price congestion support), then the second at $0.368 (double price congestion support and SMA100) and the third one at $0.345 (price congestion support and SMA200).
The MACD on the daily chart shows a very advanced profile, with the lines very open and hinting at the desire to cross again. The fast line moves in the negative zone while the slow line moves in the positive territory. This structure can facilitate violent upward movements.
The DMI on the daily chart shows bears narrowly dominating the XRP/USD pair. Sellers move along the ADX line, while bulls follow them closely.
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