NEW DELHI: Major cryptocurrencies were trading mixed on Thursday, following the volatility this week. The sentiment in digital token markets remained tepid. Six out of top 10 digital tokens were trading with cuts at 9.30 hours IST, whereas the rest four, led by Dogecoin, gained between 4 and 10 per cent.
After curbing payment channels for cryptocurrency trading, China is stepping ahead towards digital currencies and its e-CNY could be off the block as early as the 2022 Beijing Winter Olympics. The move is likely to be another dent for the sentiments of crypto traders.
Bitcoin has been one of the world’s best-performing assets over the past couple of years. However, even the highest return generating asset has halved its value following the crackdown in China. Despite the global popularity, the numero uno crypto token has been a laggard recently.
For the first time since the market reset in early May 2021, Bitcoin slipped below $30,000 and Ethereum breached the $2,000-mark. Since then, both the cryptos showed some recovery, which could not be sustained.
“The crypto market in general over a week’s time has seen a dip from $1.7 trillion to $1.35 trillion, which is a roughly 20 percent fall. While many attribute the slump in the market towards the negative news around China broadening the ban on Bitcoin mining, many analysts and traders believe that this will only have a short-term impact on the market,” said Zebpay Trade Desk.
“The sentiment continues to be bearish, but we believe that the Q2 options expiry date in the last week of June, which is worth $2.3 billion, should allow for price consolidation to occur once it comes through. We say that, as we believe that most expectations are already priced in, and hence see a relatively quiet period going into the next few days,” it added.
Charles Hoskinson, the co-founder of Ethereum, has said that Dogecoin is a reasonable target for someone to fix it up and make it an interesting cryptocurrency.
Crypto Cart: Quick Glance (Source: coinmarketcap.com, data as of 09.30 hours, IST on June 24, 2021)
Tech View by Giottus Cryptocurrency Exchange
Polkadot (DOT) is fundamentally among the stronger altcoins right now. Over the past six months, the price, market cap, and general reputation of both the coin and the Polkadot chain have outperformed other coins during and after dips. Support levels have exhibited exceptionally high buying volumes and low selling volumes.
DOT closely follows Bitcoin’s (BTC) price action. Assuming BTC trades sideways, DOT is expected to follow technical analysis and trendlines. Currently, DOT is in a descending wedge, which is a short-term bearish and long-term bullish pattern. Breaking out of the triangle can be highly bullish, and in some weeks, market sentiment withstanding, it may even test its ATH resistance.
Support: $15.4, $13.1, $10.4
Resistance: $17.5, $19.6, $23.4, $26.8
Ripple (XRP) has been in the spotlight since its SEC lawsuit and has shed nearly 70 per cent of its value since December 2020. Every hearing impacts its price action and recently, it has been in a descending wedge with potential to fall to as low as $0.3. It will, however, experience support at several levels within this wedge – particularly at $0.583 and $0.455.
However, given the descending wedge, there is a high probability that XRP may breakout and recover soon. This is also contingent on the SEC lawsuit going in favour of Ripple.
Support: $0.583, $0.455, $0.424
Resistance: $0.787, $0.925, $1.063
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)