Crypto Market Roundup (New York, May 20):
On May 20, Bitcoin (BTC) reached its highest level in 48 hours after US dollar weakness. A recent high of $30,725 was recorded on Bitstamp for BTC/USD. However, the gains could not sustain and fell back below $29,000. The pair struggled to flip $30,000 to reliable support but avoided an even deeper retracement, which helped calm fears that the $23,800 capitulation of last week was not the end. Bitcoin’s relatively solid performance was primarily backed by the US dollar index (DXY), which declined from two-decade highs by 2% in a week. In response, stocks appeared to ease off slightly, with the S&P 500 and Nasdaq 100 each finishing up more modestly than earlier this week.
The Ethereum price has recovered above USD 1,950 and followed a similar pattern. The price of ETH climbed above USD 2,000 and is currently trading above that mark. In the past week, ETH has climbed 3%. Shortly, the USD 2,050 level is likely to be a resistance. There is a crucial resistance near USD 2,120, above which a sharper increase can be expected.
In the case of Cardano (ADA), the market found support around USD 0.50 and recovered losses. However, strong resistance surrounds the USD 0.55 level, pushing it below the USD 0.532 level.
There is a chance for a rally for Cardano’s price (ADA) because it is currently in a favorable position for the bulls and short-term traders. However, a minor retracement will likely follow, allowing prospective buyers to accumulate ADA at a discount before catalyzing an explosive uptrend. Cardano’s price, which has rallied by 25% between May 14 and May 16, presently ranges between $0.487 and $0.614. Since then, ADA hasn’t made any move to sweep either range.
The price of Solana (SOL) has returned to the 50 USD level. However, there is a crucial hurdle at USD 55, which is currently consolidating near USD 52. A clear step above USD 55 would cause the price to rise to USD 60. Currently, the price of Solana is $51, down from its ATH of $258. Solana has lost 70% of its value since the ATH, making it one of the biggest losers in the entire industry.
Several factors contributed to Solana’s drop of 70%, including a lousy market. Markets have been dropping since Q4 2021, affecting most of the coins. Solana’s stock has been in freefall, but the problem has been widespread.
It looks promising as XRP’s price forms a base above USD 0.40. The pair is trading near $0.432, near the resistance level of USD 0.42. It’s now approaching the USD 0.45 level, the critical breakout zone. A support line has been reached on XRP, which now acts as a descending line. A significant bounce has occurred since this support level was reached. We can assume that the bulls hold the price above the static support level at $0.33 (in green) and accumulate strongly. If this happens, Ripple might make a run at $0.51. To accomplish this, Ripple needs to form a higher high than its last one, which it hasn’t done in the past year.
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