Ethereum, XRP, and Litecoin appear to have reached an exhaustion point following the uptrend they entered since the beginning of the year. Now, a technical index estimates that these cryptocurrencies could be bound for a correction before the continuation of the bullish trend.
Ethereum is about to pull back
Ethereum went through rally that saw its price surge over 40 percent since Jan. 3. This cryptocurrency went from trading at a low of $126 to a high of $179 on Jan. 18. Despite the recent bullish impulse, ETH seems to be preparing for a pullback at the moment.
The TD sequential indicator is currently presenting a sell signal in the form of a green nine candlestick on ETH’s 3-day chart. This technical index estimates that Ethereum could retrace for one to four candlesticks or begin a new downward countdown. A red two candlestick trading below a preceding red one candle could validate the bearish formation.
Although a correction seems imminent, Ethereum is contained within a reasonable no-trade zone. This area is defined by the 50 and 100-three-day moving averages, which are serving as support and resistance, respectively.
Closing below the support level could validate the bearish signal presented by the TD sequential indicator triggering a steep correction. Meanwhile, a spike in the buying pressure behind this cryptocurrency that allows it to break above resistance could take it to the 150-three-day moving average, at $195.
If Ethereum is indeed bound for a bearish impulse, it could plunge to the 61.8 percent Fibonacci retracement level that sits at $164.65. A further increase in sell orders could take ETH down to the next level of support around the 50 percent Fibonacci retracement level at $155.
XRP presents ambiguous outlooks
The moving averages on XRP’s 1-day chart formed a golden cross. As the 7-day moving average crossed above a 30 and 50-day moving average, the potential for a significant bullish breakout increased.
Now, the 30 and 50-day moving averages are also about to form another golden cross. Many investors see this technical pattern as one of the most definitive and robust buy signals that could start a prolonged uptrend.
Even though the moving averages crossover estimates higher highs for XRP, the TD sequential indicator is presenting a sell signal. The bearish formation was given in the form of a red nine candlestick, which could push the price of this crypto down for one to four candlesticks.
Due to the ambiguity about the future market valuation of XRP, the Fibonacci retracement indicator can be used to determine where this cryptocurrency could be heading next.
An increase in supply could push XRP below the 61.8 percent Fibonacci retracement level at $0.22. Such a bearish momentum could be followed by a steeper decline to the 50 or 38.2 percent Fibonacci retracement levels. These levels of support sit at $0.21 and $0.20, respectively.
Conversely, a spike in demand that takes this cryptocurrency above the 78.6 percent Fibonacci retracement level could allow it to advance even further. Closing above this significant level of resistance could take XRP up to $0.25 or $0.27. This is where the 100 and 127.2 percent Fibonacci retracement levels sit, respectively.
Litecoin is slowing down
The recent 62 percent rally that Litecoin went through allowed the 7-three-day moving average to cross above the 30-day moving average on the 3-day chart. This moving average crossover is known as a golden cross, which is a bullish technical pattern. Although the moving averages are considered lagging indicators, this technical formation estimates that a long-term uptrend could be developing.
Despite the bullish outlook presented by the golden cross, the TD sequential indicator is currently forecasting a pullback. This technical index is giving a sell signal on LTC’s 3-day chart. The bearish pattern stipulates that Litecoin would likely correct for one to four candlesticks before a possible continuation of the uptrend. A red two candlestick trading underneath a preceding red one candle could confirm the downward momentum.
Closing below the 78.6 percent Fibonacci retracement level could add credibility to the bearish scenario. If this happens, then Litecoin could plunge to the next levels of support around the 61.8 and 50 percent Fibonacci retracement levels. These support zones sit at $53 and $49, respectively.
Nevertheless, an increase in volume that pushes Litecoin above the recent high of $63 could jeopardize the pessimistic perspective. Such an upswing may take LTC to a new yearly high of $70 or $74.
Over $56 billion were injected into the cryptocurrency market since Jan. 3. The sudden inflow of capital allowed many cryptos to surge exponentially, including Ethereum, XRP, and Litecoin.
Now, investors seem to be taking profits from the recent rally, which could trigger a retracement. A pullback from the current price level would allow sideliners to re-enter the market. A new wave of fresh capital could push the price of these cryptocurrencies into higher highs.
The idea of a further advance aligns with the CEO of Bitcoin Suisse Arthur Vayloyan’s 2020 outlook. Vayloyan maintains that Bitcoin and other digital assets “will go up” throughout the year as the network continues expanding, and more investors join the space.
Sorare issues Ethereum based digital collectibles for Juventus
Juventus Football Club has entered into a partnership with Sorare. As a part of this alliance, the platform is planning to launch a series of digital collectibles of famous football players.
They have recently launched a digital asset representing famous football player Cristiano Ronaldo’s Ethereum card for their fan base. These are non-fungible tokens which are based on ERC-721 standard. These are traceable and tradable crypto-assets.
These cards will be divided into 3 categories:
- Unique-only one unique card.
- Rare- ten cards.
- Super rare- one hundred cards.
Just like other digital assets, these assets can be used for competing fantasy leagues and can be traded in the open market.
Card owners can arrange digital soccer battles by creating five-member fantasy football teams. Sorare will arrange tournaments each week on its platform and the “managers” of these digital soccer groups can earn rewards by taking part in games.
According to a press release obtained by Cointelegraph, Sorare CEO Nicolas Julia said that:
“We are very proud to have signed this agreement with such an Italian heavyweight. We see this as a new key step in our vision to onboard the best soccer clubs from around the world and bring blockchain-gaming to football fans around the world.”
Sorare, is a leading blockchain-based gaming platform. It offers users to collect and play with official football crypto goods. This Paris-based company is also in partnerships with Europe’s football giants such as AS Roma, Schalke, West Ham United, Napoli among others.
A Severe Ethereum (ETH) Correction is Expected by Traders After 125% Rally: Here’s Why
Ethereum (ETH) has front run bitcoin throughout the past 42 days. As the bitcoin price surged by around 50 percent against the USD, ETH recorded a 125 percent rally. The explosive upsurge of ETH may be coming to an end traders warn, if BTC begins to correct.
Ethereum has been a more volatile version of bitcoin during the recent rally
During a bull cycle, major alternative cryptocurrencies (altcoins) tend to precede bitcoin with strong upward momentum.
It took less than two months for Ethereum to recover from around $120 to $280, demonstrating a vertical price movement for the first time since June 2019.
Altcoins tend to outperform bitcoin amidst an ongoing rally, but during consolidation, most altcoins are at the mercy of bitcoin.
In the past two months, for instance, bitcoin has seen an extended rally with minor pullbacks, establishing solid support levels as basis for a stronger upside movement.
In contrast, altcoins like Ethereum spiked up by 80 to 130 percent with little to no pullback, leaving it vulnerable to a steep pullback.
DonAlt, a renowned cryptocurrency trader, said on a livestream that if the bitcoin price begins to pull back to the $7,000s, the altcoin market is highly likely to experience a steep correction.
Ethereum has been one of the best performing cryptocurrencies year-to-date and as such, DonAlt emphasized that the chart of ETH at larger time frames are showing strength compared to other cryptocurrencies.
Still, if the weekly candle of bitcoin closes below a key support level at $9,550, the trader noted that the market could start to correct from its recent upsurge.
The monthly chart of bitcoin also indicates it is vulnerable to seeing an evening star formation, which typically indicates a local top.
Some traders believe ETH is preventing the market from a large crash
Major altcoins including XRP, EOS, and Cardano (ADA) have already shown rejection at larger time frames, especially at a weekly level.
Ethereum is the only top cryptocurrency in the market to have maintained a green weekly candle, two days before close on February 24.
One trader known as Mac said “ETH is currently keeping BTC alive and will probably keep it alive for awhile,” alluding to the fact that Ethereum has provided the cryptocurrency market with momentum in the last two weeks.
The breakdown of ETH followed by a pullback of bitcoin below $9,500 and potentially in the low $9,000 region could spell a local top in the cryptocurrency market for the foreseeable future.
The total capitalization of the cryptocurrency market also showed rejection at $300 billion, struggling to rebound above August 2019 levels.
Ethereum News Today – Headlines for February 22
- Ethereum ProgPow update set to go live on July 2020
- ASIC may pose a threat to the Ethereum network
- The ProgPow hard fork will bring changes to Ethereum
Ethereum News Today – according to reports, the Ethereum ProgPow update has been scheduled to launch in July this year as Ethereum’s core developers conclude preparations to make the digital asset more ASIC resistant. Ether’s core developers have reportedly reached an agreement to implement the ProgPow hard fork following the EIP-1962 upgrades which are scheduled for June 2020.
The EIP-1962 update is set to add some minor features to Ethereum’s cryptographic functions. The network’s core developers have reportedly been promoting this ProgPow hard fork vigorously. This is because are solidly behind the improvements that this initiative brings to Ether. Some developers have expressed concern as there are fears that the hard fork could split the Ethereum community.
The Update is a Cause for Concern for Some
The contentious update has been a cause for concern regarding crypto exchanges running different versions of Ether all comprising of the old and new mining models which can mean a new fork for Ethereum. The exchanges can also increase their fee and the Ethereum community might inevitably split. Now that a consensus has been reached its implementation will be a reality.
James Hancock, Ethereum’s hard fork coordinator, said there wouldn’t be any split in the Ether community because the hard fork is reportedly the ‘read-to-go’. Note that Ethereum split occurred some time ago when DAO (decentralized autonomous organization) split and took about three and a half million ETH tokens. The parties affected were refunded by developers, and dissenters launched Ethereum Classic as tagged the move a developer overreach.
Despite minor dissent to Ethereum’s ProgPow hard fork, the bulk of core developers working on the project have shown support for the update. The discussions brought to the fore fissures in the developer Blockchain, as many influential developers showed their contrarian viewpoints. All in all, the meetings were elaborate.
How Does ASICs Pose a Threat to Ether?
Ethereum has resisted ASIC mining since it began. It was always more favorable for the Ether community to distribute coin via simple computer hardware. This invoked more community participation and even helped to decentralize the efforts of the ETH token. When Bitmain launched its Ethereum ASIC in 2018, it was regarded as an attack on the Ethereum community. Eventually, other manufacturers followed and launched similar products.
Another development was staking which was also in the works and would have rendered any future updates unnecessary. To date, resistance to ASIC has reportedly been successful because developers are keen to keep the platform as transparent as possible.