BTC, XRP, ETH–Week Ending Oct 13 Wrap Up

 
SHARE:

Losses are pronounced in XRP and that was largely expected. After all, the rally and the tripling of prices from 25 cents to 80 cents led to a serious mispricing. Therefore, the correction as XRP search for equilibrium is warranted. On the other hand, losses in BTC could worsen ETH drawdowns. From the way the candlesticks are arranged and the velocity of losses in the last quarter points to a fragile ETH. In that case, we retain a neutral stand but a drop of BTC prices below $6000 won’t be supportive for ETH and altcoins.

Latest Bitcoin News and Price Update

Together with institutional level, OTC and custodial services from the likes of CoinBase or BitGo for example, professionally managed crypto hedge funds are important infrastructures necessary to tap institutional level investment. Encouragingly, statistics indicate that both the number of custodial services and crypto hedge funds are on the rise. According to a research from Crypto Fund Research, in the first nine months of the year, 90 crypto oriented funds opened doors. Though the ball-park figure is 120 crypto hedge funds per year, this is a remarkable jump from 16.4 percent to 20 percent of crypto specific hedge funds from one year ago. This is overly positive and helps to instill confidence now that the market struggling against heavy bears.

Though crypto hedge funds are related with whales who have been accused on several occasions of destabilizing the thin-order market, a new study from Chainanalysis is debunking this claim. The report established that contrary to popular opinion, Bitcoin whales are after all good for the market. After analyzing 32 high volume BTC wallets holding one million coins, the firm found that most of them don’t actively trade and when they do, they trade against the trend. A third of these coins are lost while a third are active traders who got involved when the market rallied last year.

Bitcoin Price Analysis

Despite the swinging motions of the last four or five weeks where BTC prices temporarily rallied causing euphoria in the market and this week deep declines crashing them, our previous trade plan is valid and technically unchanged. Our trade plan anchored on how market participants would react at key support and resistance levels.

Capping bulls was the $7,200 price tag which if broken would have signaled a trend reversal and a chance of buyers to build momentum pumping prices to $8,500 and higher. On the reverse side, supports at $5,800-$6,000 is an important level.

Any meltdown in BTC prices could lead to losses towards $4,500 and later $3,000. Thanks to this week’s five percent loss and rejection if higher highs, we might see losses below $6,000 in coming weeks. But before the break out prints, we suggest taking a neutral position.

Latest Ripple News and Price Update

To create this perfect Internet of Value (IoV) which Ripple executives as Cory Johnson are fond of, then using a better system that is fit for that purpose is close to inevitable. The open source InterLedger Protocol might end up being their perfect solution. But the advantage is that Ripple has an investment in ILP thanks to their support of Coil through Xpring.

Besides, Ripple developed XRP Tip bot. Simply put, ILP is a blockchain system that will make it possible for payments to be made easily and seamlessly across different blockchains. Once Ripple incorporates their solutions—xCurrent, xRapid and xVia, with XRP and ILP then they would have achieved this objective. While Cory Johnson was talking about ILP, Ripple got a mention from a World Trade Organization report after they said Ripple could revolutionize businesses across the globe.

It might be along this vein that Twitter users believe that XRP retailing at less than $1 is a perfect investment. After conducting a Twitter poll, Weiss Ratings found that 64 percent of participants thought that the coin was a better investment.

XRP Price Analysis

in the top three, XRP is leading losses losing close to 20 percent in the last week. However, these declines should not be interpreted as a bearish. Notice that when we draw a simple Fibonacci retracement tool between Sep high low then we realize that prices are back to the main support line at 40 cents. This is an important support previous resistance line and coincides with the 61.8 percent Fibonacci correction level.

Ideally, since September was bullish, we expect prices to follow through. In that case, buyers should actually to buy once there are gains above 55 cents or the 38.2 percent level.

Additionally, it’s clear that the accompanying bear volumes of the last three weeks are nothing compared to the sharp volumes which backed week ending Sep 23 up turns cementing our view that these lower lows are supported by weak hands.

Latest Ethereum News and Price Update

It’s increasingly becoming clear that Justin Sun cannot launch any of his product without taking aims at Ethereum. Right after updating the mainnet with Odyssey version 3.1, he said his network is 200X faster than that of Vitalik. Earlier when he launched Tron’s Virtual Machine and followed it up with a one-in-all developer suite, he offered some incentives for developers willing to shift camp.

However, none of that is happening and still, Ethereum is a preferred platform. Statistics back that. With the launch of on-chain or layer two scaling solutions as Raiden or Plasma, the network-clogging issue will be a thing of the past. There is a team testing Shasper while Vitalik himself proposed ZK-SNARKs as the community prepares for Constantinople update.

Ethereum Price Analysis

Like the rest of the market, the path of least resistance is southwards. ETH is down 13 percent in the last week and is $40 away from the main support and sell trigger line at $160. Irrespective of fundamentals and technical arrangement, our previous Ethereum price analysis is constant.

As we had mentioned before and considering the strong bear pressure of this week, all we need is to see bears drive prices below $160 triggering short sellers aiming at $75.

Before then, we shall remain neutral and suggesting risk-off traders unload on every high in lower time frames more so once there is a close below the psychological $200 level.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.