Crypto Market Review, October 21

The cryptocurrency market is once again under pressure as the US dollar targets another rally that could put it back above its multi-year high. Meanwhile, XRP and Cardano’s price performance are causing anxiety.

DXY on the way up

Over the past 24 hours, the US dollar has been aiming for new highs as it hit the multi-year trendline resistance level for the second time in two weeks. The resistance was previously marked as a reversal point for the currency and the start of the recovery for risk markets, including cryptocurrencies.

DXY’s strong performance may be the main reason behind the plunge Bitcoin and other cryptocurrencies are making today. Over the past few hours, BTC has lost more than $300 from its value and breached the $19,000 support level, reaching the lower end of the consolidation area.

Unfortunately, technical analysis is a secondary factor for DXY, and its performance is mostly tied to US monetary policy. Until the Fed’s pivot, the USD will continue to rise as interest rate hikes make stable investment opportunities more attractive, while risk assets like Bitcoin and other cryptocurrencies suffer in a market like this.

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Bitcoin’s inverse correlation with DXY has recently reached an all-time high as the first cryptocurrency has closely tracked the USD. The same tendency applies to stocks. Unfortunately, Bitcoin’s correlation did not show during the stock market rally, raising even more concerns and risks among owners.

Cardano and XRP are collapsing

Cardano and XRP have moved in similar ways in terms of avoiding general market conditions. However, the independence of both assets does not work in their favor. Both Cardano and XRP have experienced problems in the market in recent weeks as ADA lost more than 20% of its value.

XRP did not go through such a severe correction, but still faced some serious problems in the market by being denied around the local price level and being pushed below the 50-day moving average, which acted as a barrier between downtrend and uptrend.

Unfortunately, most technical and market signs show that XRP will continue to fall as volume profiles remain at extremely low levels in recent days and investors do not rush to support the continuation of the asset’s rally.

The rule applies to Cardano, which is falling to multi-month lows in recent weeks now. Apparent issues with the profitability of ADA are nothing new to the cryptocurrency market as it remains one of the worst performing assets in the entire industry. With the latest plunge, the situation has become even worse.