- Chinese media call for caution when investing in companies related to China's new big bet.
- Migration from Ethereum to PoS is set to bring profitable and stable investments.
- Technically, the market is in transition to a cleaner and more stable upward environment.
China remains in the spotlight among participants in the cryptocurrencies market. After a day in which everything that smelled of Blockchain became overbought in Chinese bags, authorities have made attempts to curb the euphoria of the state media.
In an early morning publication, the People's Daily has launched a warning asking the population to learn to differentiate between cryptocurrencies and companies with some link to blockchain technology.
Many Chinese technology companies reached the upper limit of allowed fluctuation of 10% in Monday’s trading. Several of them are dedicated to the Blockchain industry, but also others that take advantage of the situation, adding references to the sector in their names or issuing statements where they indicate their interest in the new myth of El Dorado.
How to obtain income from investing in cryptocurrencies.?
From within the ecosystem comes a study by Binance on the potential increase of staking in the crypto ecosystem. The next transition to Ethereum 2.0 to a PoS protocol (Proof of Stake), will mean a significant change in the way to make an investment in the Crypto market profitable.
Ethereum currently operates under a PoW (Proof of Work) protocol, which uses the computing power to assign rewards and voting power in the consensus. The PoS protocol uses staking volume, which opens up a new market in which token holders can assign tokens to be staked in exchange for an annual return.
ETH/BTC Daily Chart
The ETH/BTC cross continues to be under the control of the selling side despite the bullish attempts of the last few hours. The presence of major moving averages at 0.020 and 0.021 are hampering the upward development.
Above the current price, the first resistance level is at 0.020, then the second at 0.021 and the third one at 0.0243.
Below the current price, the first support level is at 0.019, then the second at 0.018 and the third one at 0.017.
The MACD on the daily chart continues to have a bearish profile. The slope of the moving averages has not increased, although the opening has gained a few points. The situation of the averages, in the transition from the bullish to the bearish side, may help to increase volatility.
The DMI on the daily chart shows how bears continue to dominate ETH/BTC and stay above the ADX line. Bulls have become stronger in the last few hours, but far from being able to dispute control of the bears.
BTC/USD Daily Chart
BTC/USD is currently trading at $9,423 and is already the fourth day without strength to close above the SMA200 at $9.500.
The strong support around $9,000 for the SMA100 and EMA50 helps to compress the price as they are titling to the upside. In the next few hours, the price will be unable to stay between moving averages, which could produce a violent breakage.
Above the current price, the first resistance level is at $9,500, then the second at $10,600 and the third one at $11,400.
Below the current price, the first support level is at $9,150, then the second at $8,800 and the third one at $8,400.
The MACD on the daily chart shows the strength of the bullish movement that began over the weekend. Both the slope of the moving averages and the opening between them is strongly bullish. Only the transition that is taking place between the bearish and bullish side of the indicator is an obstacle to consider.
The DMI on the daily chart reflects the difficulty that bulls have to overcome the ADX line, a necessary condition to enter an active bullish trend situation. The bears withdraw and show no interest in disputing the leadership of the bulls.
ETH/USD Daily Chart
ETH/USD is currently trading at the $188.14 price level as it moves between significant moving averages with the SMA100 at $190 and the EMA50 at $182.
Above the current price, the first resistance level is at $190, then the second at $195 and the third one at $200.
Below the current price, the first support level is at $180, then the second at $170 and the third one at $160.
The MACD on the daily chart shows an upwardly crossed moving average but with little inclination and even less opening between the lines. The immediate presence of the neutral level of the indicator is a significant obstacle to bullish development in the short term.
The DMI on the daily chart shows bulls dominating Ethereum, comfortably above the ADX line but losing strength in recent hours. Bears drill down to level 20 and show no interest in taking advantage of the apparent loss of power of the bulls.
XRP/USD Daily Chart
XRP/USD is currently priced at $0.2979 and is the only component of the Top3 that enjoys a clean space of significant moving averages.
I want to point out that the EMA50 crosses the SMA100 upwards today, which is favorable for future price hikes.
Above the current price, the first resistance level is at $0.30, then the second at $0.31 and the third one at $0.32.
Below the current price, the first support level is at $0.294, then the second at $0.29 and the third one at $0.28.
The MACD on the daily chart shows a total loss of inclination and openness between indicator lines. These types of structures, which reflect a drop in price volatility, often have violent resolutions.
The DMI on the daily chart shows bulls with an utterly flat profile that only positively contributes to staying above the ADX line. The bears are slightly downward inclined although they remain very close to the bulls.
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