Cryptocurrencies have been showing signs of weakness throughout this month. More than half of the crypto market was trading sideways after retreating off the highs, unable to resume the bullish trend, while the pressure was clearly on the downside.
Over the weekend, the bearish pressure turned into a bearish move and digital currencies tumbled lower. Bitcoin fell to$41,000 lows, with Ethereum which was extremely bearish this week turning bearish as well and losing more than 25% of its value.
One of the reasons for this was Elon Musk’s comment, who reiterated his newly-developed distaste for Bitcoin’s environmental impact, notably the key role of coal played in the mining process. He also twisted the knife by tweeting that Doge Coin was in a better position to become a mainstream means of payment, saying it would “win hands down” if it adopts the kind of approach to faster processing that Bitcoin’s closed community refused some three years ago.
Bitcoin is finding it hard to hold on to gains whenever buyers decide to push higher, while lows keep getting lower. The 20 SMA rejected the price yesterday and today buyers couldn’t even push to that moving average.
Ripple coin XRP, has been holding quite well on the other hand. In fact, it seems to the be only cryptocurrency to remain bullish, despite the strong decline in the market. XRP/USD remains well supported by he 50 SMA (yellow) on the H4 chart, which keeps pushing the lows higher.
The highs are still lower, although the declining highs are smaller than the increasing lows, which is a bullish sign. Te other bullish sign is the fact that Ripple coin is holding well, while all other cryptos are declining. This shows that Ripple will resume the bullish trend once the decline in the market stops. So, we are holding on to our buy Ripple signal, which is around 2,000 pips in profit now.