Top 3 price prediction BTC, ETH, XRP: Libra launches crypto-space arms race
- Facebook’s Libra project has sparked a race for a cake valued at $80.14 trillion (world GDP).
- Tunisia was the first to enter the world of digitized currencies, China will not be the last.
- US and European decisions will set the framework for the next decades.
China has announced that the deadline for the digital yuan to kick-off is in approximately three months.
After the first real test of the Central Bank of Tunisia on Monday, China has surprised the world by accelerating the implementation of its model of a sovereign cryptocurrency.
Many observers are wondering about the strange urgency transmitted by central banks on this issue. Such institutions are usually in no hurry to accelerate any project.
The ecosystem of means of payment has been a revolution for decades since the emergence of PayPal. The eruption of cryptocurrencies supposed a faster pace and provoked this need to have a product on the market.
How does Libra fit in?
Facebook’s initiative has triggered alarms even in the South Pole. Central banks responded within hours. The proposal led by the Calibra Foundation combines technology, financial muscle and a potential market of 2.4 billion prospective users.
The impact was clear from the virulence and speed with which the brainy central bankers and legislators have acted.
They have a competitor that can take the market share away from them – if it has a chance. They have reached the conclusion that a counter-proposal capable of keeping most of the percentage of capital flow under the control of governments must be put forward quickly.
ETH/BTC Daily Chart
The ETH/BTC pair is currently trading at the price level of 0.0213 (+0.58%), enjoying the third consecutive day of gains. The path to the 0.022 level is more robust than expected, weakened by the short intraday range we see in the pair’s two components.
Above the current price, the first resistance level is at 0.022; the second one at 0.023 and the third at 0.024.
Below the current price, the first support level is at 0.0206, the second at 0.020 and the third one at 0.019.
The MACD on the daily chart is very robust and retains the slope and openness between the lines as it crosses the bullish neutral level of the indicator.
The DMI on the daily chart shows an extension of buyers' control. The bears eventually give up and continue their decline.
BTC/USD Daily Chart
BTC/USD is currently trading at the $8,766 price level, playing with the price congestion support level at $8,750. China's round turn on cryptocurrencies and Bitcoin, in particular, maybe working to curb falls.
The main moving averages are moving in an increasingly narrow space with low volatility. The fact that the encounter between these moving averages occurs in an environment of low volatility prevents a quick solution.
Only a sudden increase in price volatility could force moving averages crosses and speed up the process.
Above the current price, the first resistance level is at $8,950, the second at $9,000 and the third one at $9,500.
Below the current price, the first support level is at $8,750, the second one at $8,400 and the third at $8,200.
The MACD on the daily chart shows a continuation of the downward cross that was active at the end of last week. It does not increase the downtrend or openness between lines and reinforces the bullish rebound scenario as soon as it reaches the neutral level of the indicator.
The DMI on the daily chart shows the bulls with a small advantage over the bears. The meeting between the two sides of the market will take place in a few days.
ETH/USD Daily Chart
ETH/USD is currently trading at $187.2 and is set to attack the first price congestion resistance level at $190.
Above the current price, the first resistance level is at $190, the second at $195 and the third at $200.
Below the current price, the first support level is at $180, the second at $170 and the third is at $160.
The MACD on the daily chart loses all biases and openness between the lines. It is a faithful representation of the narrow daily price range that it has experienced over the past few days. A bullish rebound is possible, and that may give way to an extension of the previous bullish trend.
The DMI on the daily chart clearly shows the bulls controlling ETH/USD and keeping the bears at the lows. The negative point is the low ADX level, confirming the complete loss of trend strength.
XRP/USD Daily Chart
XRP/USD is currently trading at $0.273 and is attempting to breach the SMA100, the resistance level at the $0.276 price level.
Above the current price, the first resistance level is at $0.276, then the second at $0.283 and the third one at $0.285.
Below the current price, the first support level is at $0.27, then the second at $0.267 and the third one at $0.26.
The DMI on the daily chart confirms the MACD scenario. The bears control XRP/USD while the bulls give no sign of wanting to move higher.
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Author
Tomas Salles
FXStreet
Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland.
