After restricting the payment channels for Cryptocurrency Trade, China is moving towards digital currencies, and its e-CNY could be phased out as early as the 2022 Beijing Winter Olympics. The move is likely to be another dent in crypto trader sentiment.
Bitcoin has grown into one of the most powerful assets in the world in recent years. However, even the asset with the highest return has halved its value according to the practice in China. Despite its worldwide popularity, the Numero Uno crypto token has been a laggard lately.
For the first time since the market restarted in early May 2021, Bitcoin slipped below $ 30,000 and ether cracked the $ 2,000 mark. Since then, both cryptos have shown some recovery that could not be sustained.
“The crypto market in general has dropped from $ 1.7 trillion to $ 1.35 trillion over the course of a week, a decrease of about 20 percent. While many attribute the market slump to negative news about China’s extension of the Bitcoin mining ban, many analysts and traders believe it will only have a short-term impact on the market, “Zebpay Trade Desk said.
“The mood remains pessimistic, but we believe the expiration date of the Q2 options last week of June, which is valued at $ 2.3 billion, should allow for price consolidation once it comes through. We say this because we believe that “most expectations are already factored in, so the next few days will be relatively quiet,” she added.
Charles Hoskinson, the co-founder of Ethereum, has said that Dogecoin is a reasonable target for someone to fix it and make it an interesting cryptocurrency.
Tech View of Giottus Cryptocurrency Exchange
Polkadot (DOT) is currently one of the stronger altcoins. Over the past six months, the price, market capitalization, and general reputation of both the coin and the polkadot chain have outperformed other coins during and after slumps. The support levels have shown exceptionally high buying volumes and low selling volumes.
DOT exactly follows the price action of Bitcoin (BTC). Assuming BTC is trading sideways, DOT is expected to follow technical analysis and trend lines. Currently, the DOT is in a descending wedge, which is a short-term bearish and a long-term bullish pattern. Breaking the triangle can be very bullish, and it could even test its ATH resistance in a few weeks if market sentiment holds up.
Support: $ 15.4, $ 13.1, $ 10.4
Resistance: $ 17.5, $ 19.6, $ 23.4, $ 26.8
Ripple (XRP) has been in the spotlight since its SEC lawsuit and has lost nearly 70 percent of its value since December 2020. Every hearing affects its price action and lately it has been in a descending wedge with the potential to drop as low as $ 0.3. However, support will be seen at multiple levels within this wedge – specifically at $ 0.583 and $ 0.455.
However, given the descending wedge, there is a high chance that XRP could break out and recover soon. This also depends on the SEC lawsuit failing in Ripple’s favor.
Support: $ 0.583, $ 0.455, $ 0.424
Resistance: $ 0.787, $ 0.925, $ 1.063
The time is in UTC and the daily time frame is 12:00 PM – 12:00 PM UTC
(The views and recommendations in this section are the analysts’ own views and recommendations and do not reflect those of ETMarkets.com. Please consult your financial advisor prior to entering into any position in any of the assets.)