The cryptocurrency market digest (BTC, ETH, XRP). Overview for 06.05.2022

May 6, 2022

Article By RoboForex.com

The BTC dropped after all. On Friday, the major cryptocurrency is trading at $36,435; yesterday’s low is $35,579. At the moment, the asset is moving close to the lows of 24 February.

Over the last 24 hours, the BTC lost 9%.

The current technical picture doesn’t exclude a possibility of a plunge below $35,000. After breaking the support at $37,500б bears got stronger and may continue pushing the asset down to the next support at $35,500. $37,500 is now the key resistance and the bulls may reach it only after fixing above $36,500. Otherwise, the plunge will resume and the price might reach $35,000 and the next target at $34,200.

What has happened? The US fed raised the benchmark interest rate by 50 basis points, just as expected. As a result, market players got exactly what they were expecting and pushed the prices upwards. There is a direct correlation between NASDAQ and S&P 500 and the BTC, so the cryptocurrency responded to the news with a serious growth but then investors realised that the rate would be much higher by the end of the year. After that, global purchases transformed into global sales.

It’s interesting that at the end of the week, the US stock market was in the similar conditions it started the week. However, the plunge in the BTC was much more serious.

Bitcoin chart online

ETH: no good news

The ETH, the major altcoin, continues falling. The market sentiment is not too optimistic and there are no strong fundamental factors to support the digital asset. Today, it is fluctuating around $2,740. The technical picture implies a plunge to $2,600 unless bulls manage to turn the tables.

Ethereum chart online

XRP: attacking 0.5461

Unlike other altcoins, the XRP is looking quite well – it is losing only 1% per day. However, the mid-term trend remains negative. At the moment, the asset is trading at $0.6085. the closest support is at $0.5461. If the price breaks it, the asset may continue falling towards $0.4000.

Ripple chart online

LFG: unconditional trust in BTC

In the meantime, Luna Foundation Guard has bought the BTC worth $1.5 billion – it’s about 37,863 Bitcoins – in two transactions. At first, LFG closed a $1 billion OTC swap with crypto prime broker Genesis for $1 billion worth of UST. It also bought $500 million of bitcoin from crypto hedge fund Three Arrows Capital. Now the LFG is in the Top 10 biggest BT holders. These transactions get the LFG closer to the idea of creating crypto reserves in the amount of $10 billion. It’s twice as much as MicroStrategy has.

It’s good news for the LUNA token. The point is to make a coin stable and decentralised, and this requires other crypto assets to support it. It might well be that others will decide to follow this example, at least TRON.

Article By RoboForex.com

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