A bite-size overview of digital asset market trends for this week
Crypto traders kick off the week with more stability in place after bitcoin experienced a small fresh crash at the weekend. The prices of BTC returned to 11,400 area after being briefly crunched to 11,000 levels on Sunday, while altcoins have generally rebounded from Friday’s lows.
News-wise, China is back in the spotlight. Shanghai Securities News reported that the People’s Bank of China is planning to launch a state-backed cryptocurrency by the end of this year. The Chinese central bank said, the cryptocurrency will fully operate on blockchain and will able to act as a digital currency as well as an electronic payment system. The PBOC added that the project has been in development for five years. Analysts said, apparently China is speeding up its expansion in the crypto space, while the US seems to remain overly cautious over crypto adoption.
On the other hand, M&A seems on Ripple’s agenda. In an interview with Yahoo Finance UK, CEO Brad Garlinghouse confirmed that the company is in talks over “multiple” potential investments and acquisitions. That came as Ripple has been facing increasing competition in the area of institutional money transfer. Garlinghouse also said the company is expected to sign about 100 new clients this year, with 20% of them will involve XRP and xRapid product. You can read more about how intense is the competition that Ripple is facing and the effect on XRP prices here.
Movers & Shakers
Here is what we are watching in the crypto space.
- BTC/USDT 6-hour chart shows the pair has been stabilized after the price actions over the weekend.
- However, the declining volume and RSI suggests that the bulls were standing on thin ice.
- The first short-term key level to watch is 11539 (10-SMA), followed by 11670 (20-SMA).
- The lower band of the Bollinger Bands is near 11240.
- As we discussed before, LTC/USDT has been in range trading since mid-July. However, the pair traded out of the lower range over the weekend.
- The rebound on Monday produced a long upper shadow, indicating that another downturn could be coming, and the rebound may be short-lived.
- Looking below, another significate support would be at around 73, which is the support level back in May. At the same time, 250-SMA (green line) is also near that area.
- The pair has developed two bullish flag patterns in late June and early August and seems developing the third one this week.
- The RSI (yellow circle) has reached overbought level before the two previous selloffs.
- Two reference levels to watch, 0.0113 and 0.01009, which are the previous breakout points.
- The pair jumped about 7% on Monday Asia trading. It will produce a “Three White Soldiers” pattern on a daily chart if the pair can close above opening price today. The pattern suggests a strong change in market sentiment.
- Although the pair has been in a downtrend since late June, the support at 3.01 remains legitimate.
- 20-SMA (white line) could be the first resistance, which is around 3.58.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
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