Cryptocurrencies continue to remain weak, resuming the bearish momentum last week, but the selling pressure seems to be weaker as well now, indicating that the bearish period of the last four months might have ended. Sellers don’t seem as confident as they fail to push crypto prices to new lows. Ethereum and Ripple coins are starting to reverse higher although it is a bit early to tell, so let’s see how they look like in the daily chart.
Ripple Daily Chart – The 50 SMA Turns Into Support for XRP
Can XRP Push above the 200 SMA and the $1 level
Ripple has been suffering from the SEC lawsuit in the US, which started more than a year ago and has taken many turns and twists, but it seems like it is heading toward the end. Like many had expected, the verdict will probably go in favour of Ripple Labs, as former SEC Joseph Hall official predicts. He holds the opinion that the SEC is not yet equipped to handle litigation in cases concerning cryptocurrencies as securities yet, making it hard to win the case against Ripple.
Ripple has bought back around $15 billion of its Series C funding, suggesting that they are confident that they will win the case. So, this might be a good time to buy XRP. The technical chart also shows some bullish signals, as XRP/USD reversed above the 0.50 support last month, while now it seems that the 50 daily SMA (yellow) has turned into support below $0.70, which means a higher high. So, if sellers can’t push lower, then buyers will take charge, so we decided to buy Ripple, which you can follow on our live forex page.
Ethereum Daily Chart – The 50 SMA Turns Into Support
Ethereum headed to $3,000 again
While Ripple has been suffering from the SEC legal battle, Ethereum has been suffering from the inability to scale up, which means slow transactions and high costs. Ethereum is moving to a faster and more environmentally-friendly proof of stake (PoS) system and Vitalik Buterin has said that they will try to add a blob-carrying transaction feature to help with scalability, but at the same time, he has also accepted that the future of Ethereum will depend on Layer 2 networks for scaling.
So, the negative sentiment of the last several months in the crypto market has weighed considerably on Ethereum, sending ETH/USD to $2,160 from almost $5,000. Although similar to XRP, Ethereum has been making higher lows. ETH has reversed off the lows at $2,500 yesterday and if the reversal is real, the price should continue higher.
ETH/USD
