Cryptocurrencies Weekly Summary – Top Five Crypto Coins to Watch
Ethererum (ETH/USD) Weekly Review
The ETH/USD crypto pair failed to stop its previous day’s losing streak and remained depressed around below $2,700 marks. The buyers could not climb above the daily high of $2889 level as the Ethereum price hit the daily low at $2639. ETH/USD is hovering at $2,672.58, so it may take a few days to catch up above the $3000 resistance level. As we know, its price has not experienced any major pullbacks yet and may use the 9-day M.A. for support if it happens. Significantly, the most important signal for ETH is the break of $2900, which represented a significant resistance level. The pair may face some selling pressure if the price falls below the 9-day moving average at $2500 support. Meanwhile, the ETH/USD price has not changed much during the past few days, even after the massive flash crash down to $1728 suffered on May 23. ETH is currently fighting to stay above $2700 but might not face much resistance until it gets to the $2900 level.
However, the prevalent bearish bias could be tied to the stronger U.S. dollar, which tends to undermine the ETH/USD crypto pair. The U.S. dollar was supported by the upbeat U.S. data, which showed that the U.S. GDP grew by 6.4% quarter-on-quarter during the 1st-quarter of 2021, slightly below the 6.5% growth in forecasts, but the same growth as the previous quarter. Meanwhile, the reports also showed that 406,000 initial jobless claims were filed throughout the week. The number reached a 14-month low as layoffs declined. The positive data suggests that the U.S. economic recovery remains on the recovery track, which tends to underpin the American currency. Therefore, the upticks in the U.S. dollar were seen as one of the key factors that kept the pair under pressure.
On the other hand, the President of Bianco Research, Jim Bianco, said that he owns a cryptocurrency asset basket, including Ethereum, but he has prevented from buying Bitcoin. He also admitted that he bought Ethereum instead of Bitcoin. Bianco outlined the significant potential of the crypto market and noted that traders with an “out-of-control casino” mentality were the real problem that causes massive volatility in the digital assets market. In his opinion, the latest market crash was driven by too many leveraged positions that caused billions of dollars to liquidate in days.
Bianco said that his holdings of cryptocurrency have a significant portion of Ether due to his belief in the asset’s future performance. He added that people should have some exposure to the cryptocurrency market as it was more correlated to other risk assets, including stocks. Meanwhile, on Thursday, the Ethereum co-founder Vitalik Buterin said that the long-awaited shift to the “proof-of-stake” mechanism could solve environmental woes. Buterin said that POS would be a solution to the environmental issue of Bitcoin as it will need far fewer resources to maintain. It is an alternative to the “proof-of-work” model currently used by the Ethereum network to generate Ether.
In April, the Ethereum Foundation announced that it would move to a POS System, and the switch is expected to be completed by the end of 2021. With the environmental issue related to crypto mining receiving a renewed focus throughout the market thanks to Elon Musk and recent bans on crypto mining by Chiua and Iran, Ethereum could see a massive rally in its prices on switching to a potentially more energy efficient POS mechanism.
Bitcoin (BTC/USD) Weekly Review
The BTC/USD crypto pair failed to stop its previous bearish moves and drew some further offers around below $38,000 marks against the U.S. dollar. BTC/USD attempted another try to gain bullish momentum above the $40,000 resistance. But, it failed to continue higher and remained in a key range below the $38,000 level. The last swing high was made around $40,923 before the price started moving in a range. It corrected lower below the 23.6% Fib retracement level of the upward move from the $31,088 swing low to $40,923 high. As of now, the price is trading near $37,348.9 and the 100 hourly simple moving average. On the bullish side, immediate resistance is near the $39,200 level. The first major resistance is near the $40,000 level and the triangle upper trend line. A close above the triangle resistance may push the BTC above the $40,500 and $40,600 resistance levels in the near term. Conversely, if the BTC/USD pair fails to clear the $40,000 resistance, there is a chance of a downside break. Initial support on the downside is near the $37,500 level.
The reason for the ongoing bearish bias could be attributed to the bullish U.S. dollar, which pushes the BTC/USD crypto pair lower. The buying bias surrounding the U.S. dollar was mainly sponsored by the upbeat U.S. data, which showed that the U.S. GDP grew by 6.4% quarter-on-quarter during the 1st-quarter of 2021, slightly below the 6.5% growth in forecasts, but the same growth as the previous quarter. Meanwhile, the reports also showed that 406,000 initial jobless claims were filed throughout the week. The number reached a 14-month low as layoffs declined. The positive data suggests that the U.S. economic recovery remains on the recovery track, which tends to underpin the American currency. Therefore, the upticks in the U.S. dollar were seen as one of the key factors that kept the crypto pair under pressure.
Across the ocean, the reason for the bearish bias around Bitcoin could also be associated with the reports suggesting that another Chinese province is considering a ban on BTC miners. The Sichuan regulatory office of China’s National Energy Administration has declared that it would schedule a virtual meeting on June 2 to discuss the possibility and implications of shutting down Bitcoin mining in the province. This, in turn, raised uncertainty among the bitcoin bulls, which contributes to the BTC losses.
Litecoin (LTC/USD) Weekly Review
The LTC/USD crypto pair failed to stop its overnight losing streak and remained depressed below $190.00 marks. The pair faced a 0.95% price drop over the past 24 hours of trading. The reason could be tied to the fact that Bitcoin is also dropping. Litecoin price is currently trading near the 9-day moving average within the channel, but it looks like it might be headed beneath it. Meanwhile, a break beneath this 9-day M.A. could see LTC/USD headed towards the $150 level, and it is expected to happen if Bitcoin (BTC) continues to drop over these coming days. We can see that the price has been struggling at the resistance levels of $180 to $200 over the past few days of trading. However, as the pair moves in this range, the market can be considered as neutral at this moment in time because the Relative Strength Index (14) is moving around the 41-level and it looks like that the bears may be raising their momentum in the next few days which could push LTC lower, below the boundary of the channel. The first level of support rests at $120. This is followed by support at $100, which is expected to stop the market from falling more. If the selling continues, traders can expect added support at $80 and below.
Ripple (XRP/USD) Weekly Review
The XRP/USD crypto pair failed to stop its previous day’s bearish performance and took some further offers around 0.90716 marks. However, the reason could be tied to the fact that Bitcoin is also dropping. The XRP/USD price has faced intense volatility in the wake of bearish Bitcoin bias. XRP is trading around $1 level when writing as Bitcoin and altcoins are showcasing positive price appreciation, following a weekend that saw the cryptocurrency market lose over $600 billion from its market cap. In April, XRP climbed by 260%, hitting a year high of $1.92 on April 14. Ripple was trading around the $1 mark amid the flash market fall. On Tuesday, May 25, a whale alert issued data that 139.3 million XRP tokens were moved to an unknown wallet. Meanwhile, reports from the same data provider indicated that cryptocurrency exchanges such as Bittrex and Binance moved 30 and 37 million XRP tokens, respectively.
Ripple and the XRP token take center stage as the lawsuit between SEC and Ripple is still going on without any end in sight. While XRP trading has been suspended in the United States as exchanges want to prevent any financial investigations, the value of Ripple has gained significant progress as positive headlines emerged during the case. Still, price movements on the Ripple network are increasing. The CEO of Ripple Labs, Brad Garlinghouse, shared his thoughts regarding the future of cryptocurrency and XRP. In a recent interview, the CEO spoke up and shared his frustration surrounding the lack of clear crypto regulatory guidelines in the U.S.
He added that on the one hand, the SEC was accusing Ripple of illegally selling its XRP tokens for over $1.3 billion and argues that the sake was an unlawful security offering. On the other hand, Ripple maintains that cryptocurrencies were not securities. In its defense, Garlinghouse noted that the U.S. falls behind compared to its peers with regards to implementing clear crypto regulations. He also said that XRP was a zero inflationary token, unlike BTC and ETH.
Despite the lawsuit, Ripple Labs intends to become a publicly-traded company after it settles the lawsuit against the SEC. Meanwhile, Ripple announced its partnership with Bank Dhofar, the second largest bank in Oman, to allow cross-border payments to India. According to Ripple, the partnership will use RipplrNet to collaborate with IndusInd Bank.
Despite all these favorable developments, XRP/USD remained under pressure on Thursday and posted minor losses following the declining trend in the cryptocurrency market. Furthermore, the pair also remained bearish for the day despite the declining U.S. dollar. The greenback fell to 90 levels on Thursday against its rival currencies and capped further losses.
Dogecoin (DOGE/USD) Weekly Review
The DOGE/USD cryptocurrency pair price failed to stop its previous day’s bearish streak and remained sour around the 0.322134 level. The reason for the ongoing bearish bias could be attributed to the bullish U.S. dollar, which pushes the DOGE/USD crypto pair under pressure. The buying bias surrounding the U.S. dollar was mainly sponsored by the upbeat U.S. data, as we discussed earlier.
Meanwhile, the losses were further bolstered after Elon Musk recently clarified that he does not control Dogecoin (DOGE). This, in turn, becomes the key factor that weighs on the DOGE/USD cryptocurrency pair, at least for now. The decline in DOGE/USD came in despite the news that Hello Pal International Inc. announced that it had acquired a majority interest in startup Crypto Pal Technology and has created the first listed company focused on mining Dogecoin.
Crypto Pal has 12,500 mining rigs dedicated to the mining of Dogecoin and Litecoin in multiple locations. Hello Pal said that this partnership would bring the world closer as Dogecoin was rapidly accepted and adopted internationally. Furthermore, on Thursday, Tesla CEO Elon Musk made it clear on social media that he does not control the meme-inspired cryptocurrency DOGE. He added that his ability to take action was limited as Dogecoin has no formal organization and no one reports to him.
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