The cryptocurrency market remains under pressure, the price of Bitcoin went below $30000 support, and the risk of further declines is still not over. This situation also negatively influences the price of Litecoin LTC/USD, Cardano ADA/USD, and Stellar XLM/USD, and probably it is not the best moment for investing in the cryptocurrency market.
Investors remain concerned that it may take a long time for prices to see any more significant recovery, while analysts from some of the largest U.S. banks like JPMorgan Chase and Citigroup expect more downside for the cryptocurrency market.
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“Institutional interest in Bitcoin and other cryptocurrencies has dried up and even turned negative. The most important thing to notice is that institutional interest started slowing down in April 2021, before the May correction,” said Nikolaos Panigirtzoglou, an analyst from JPMorgan.
It is also important to mention that the European Union has proposed a ban on anonymous cryptocurrency transactions this month. All crypto providers will have to apply EU rules which means that all cryptocurrency transactions must record customer names and information.
Litecoin (LTC) continues to trade below $150 resistance
Litecoin has weakened from $155 to $104 in less than thirty days, and the current price stands around $109.
If the price falls below $100 support, it would be a strong “sell” signal, and the next target could be around $90. The risk of further declines is probably not over, but if the price jumps above $150, we have the open way to $175.
Cardano (ADA) is trading currently very close to the strong support level at $1
Cardano is currently trading very close to the strong support level at $1, and this could indicate that the price could weaken even more. If the price breaks this support level, it would be a very strong “sell” signal, and the next target could be around $0.80.
Cardano (ADA) remains in a bear market, and traders should use “stop-loss” and “take profit” orders when opening their positions because the risk is currently high. On the other side, if the price jumps above $1.40, that could be a very good opportunity for the short-term traders, and the next target could be around $1.60.
Stellar (XLM) remains under pressure
Stellar has weakened from $0.80 below $0.20 since the 16th of May, and the current price stands around $0.21.
If the price falls again below $0.20 support, it would be a firm “sell” signal, and the next target could be around $0.15 or even below.
Summary
The whole cryptocurrency market is pressured by the fall of Bitcoin, and if you decide to trade Litecoin, Cardano, or Stellar, you should use a “stop-loss” order because the risk remains high. The European Union has proposed a ban on anonymous cryptocurrency transactions while analysts from some of the largest U.S. banks expect more downside for the cryptocurrency market.
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