Bitcoin, Ripple: Price Analysis, June 24....What do you think friends!
In the world of investing, fundamentals and a price of an asset class rarely move in tandem. Usually, one leads the other.In 2017, the prices of cryptocurrencies skyrocketed, but the fundamentals were left lagging behind. That resulted in a sharp correction. While most digital currencies are down more than 50 percent from their highs, the fundamentals have improved rapidly this year.
Everyone, right from the investment banks to the large corporations are exploring the vast opportunities of the blockchain technology and cryptocurrency trading. The educational institutions, governments, and the central banks are also not left behind. They too are exploring the various options available in this breakthrough technology.
The pullback in Bitcoin stalled right at the downtrend line. The failure of the bulls to break out of this overhead resistance has attracted fresh selling by the bears. Now, it’s up to the bulls to defend the major support at $6,075.04.
If the bears succeed in breaking below the psychological support at $6,000, the BTC/USD pair can slide to the next support at $5,450.
The signal to buy when the RSI enters into the oversold territory is not working. This shows that the buying has dried up and selling increases as soon as the digital currency nears the first overhead resistance. Our view of a range bound action will be invalidated if the bears sustain below the $6,000 levels.
But if the bulls defend the support zone between $6,000-$6,075, it will indicate that the virtual currency still remains in a large range. We might propose a long position if the price sustains above the 20-day EMA for a couple of days.
Repeated failure of the bulls to scale above the $0.56270 levels has invited a fresh bout of selling by the bears. Ripple is now likely to fall to the final support at $0.45351.
A break of the $0.45351 levels on a closing basis (UTC) will be a negative development because the next support is way lower at $0.24. Such a move will complete a 100 percent retracement of the rally that had started in mid-December of last year.
If the bulls successfully defend the critical support level, the XRP/USD pair might again attempt to rebound above $0.56270.
We shall wait for a new buy setup to form before suggesting any trade on it.