Bitcoin, Ripple, Ethereum, Stellar, EOS, Litecoin, Cardano, Monero, TRON, Dash: Price Analysis, Nov. 23
While a price crash can indicate decaying asset class fundamentals, markets often get the fundamentals of new technology wrong.
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Market data is provided by the HitBTC exchange.
Does a crash in prices indicate the decaying fundamentals of an asset class? In many instances it does, but the market usually gets the fundamentals of an emerging technology wrong, both in the short term and in the long term.
In May 1997, Amazon’s share price was quoting at $18. Short-term expectations propelled it to $300 by December 1998 and from there it slumped to $6 per share after the dotcom bubble burst. At that point, the market was severely underestimating its potential and the non-believers were claiming victory. However, the model proved everyone wrong, and Amazon became the second company in the history to reach a market capitalization of $1 trillion.
Blockchain entrepreneur and industry advisor, Vinny Lingham, said to Cointelegraph: “The climate can change once more companies with solid use cases emerge from their development cycles, gain traction and prove sound business value to make a difference.” Just because the prices have crashed, it doesn’t signal the end of an asset class.
As the price action in the near-term is dictated by technicals, let’s look at the charts and forecast the probable price action.
During a waterfall decline, support levels are not honored, making it difficult to predict the bottom. The pullbacks also usually last only for about 1–3 days. Bitcoin attempted a recovery on Nov.r 21 that failed at $4,799.74.
Subsequently, the BTC/USD pair has resumed its downtrend, making a new low. Both the moving averages are sloping down and the RSI is deep in the oversold territory. This shows that the sellers are in command.
The immediate support on the downside is $4,100, below which, the fall can extend to $3,500– $3,000.
Any recovery attempt will face stiff resistance at the downtrend line and $5,000. Though we want to use the current fall to buy, we believe that the traders should wait for a level to hold before initiating any long positions.
Ripple has broken down of the uptrend line, which shows that it is also being affected by negative sentiment. However, it remains well above its lows, which confirms its outperformance.
The moving averages have started to turn down and the RSI has dipped below 40, which suggests that the supply is outpacing demand.
The next support on the downside is $0.37185 and below that, $0.26913. The XRP/USD pair will point to a consolidation if the prices quickly scale above the uptrend line and the moving averages flatten out. For now, it is best to stay on the sidelines.
Ethereum is not finding buyers at higher levels. The pullback stalled at $141.91, which shows a lack of buying support.
Currently, the bears are attempting to extend the decline to the next support level at $110. Though anything is possible in the markets, we believe that the oversold levels on the RSI point to a probable pullback. We don not recommend trading on hope, hence, we shall wait for a new buy setup to form before suggesting any trade in it.
On the upside, the ETH/USD pair will face a stiff hurdle at $167.32. The 20-day EMA is also close to this level, making it a critical resistance to cross for the bulls.
Stellar is at a critical level. If the bears sustain prices below $0.184, it will be negative and can result in the start of a new down move. The lower levels to watch on the downside are $0.1547188 that is the intraday low of March 18 and $0.138565, which is the intraday low hit on Dec. 22 of last year.
Conversely, if the bulls successfully defend the $0.184 level, the XLM/USD pair, might pull back to the 20-day EMA and above it to the downtrend line. We suggest traders wait for a new buy setup to form before entering any long positions.
Though EOS has broken down of the critical support at $3.8723, it has not plunged. This shows some buying support at lower levels. The oversold reading on the RSI also points to a recovery attempt.
If the bulls scale $3.8723, a move to the downtrend line and above it to $4.493 is probable. The 20-day EMA is also located close to this level, hence, $4.493 will act as a major roadblock.
If the EOS/USD pair fails to rise above $3.8723, it can slump to $3. We do not find any bullish patterns developing, hence, we are not proposing a trade in it.